How to ensure proper planning:
I came across this funny conversation and then I realized, it’s not so funny when you’re on the other end of the phone.
http://bank-aunt.diply.com/auntyacid/bank-charges-dead-aunt-guy-calls-conversation/116392
In probate, all assets must be liquidated and deposited in a court blocked restricted bank account and then distributed to the beneficiaries of the estate. Sounds easy enough but dealing with financial institutions is time consuming, frustrating and expensive.
I have dealt with countless banks that are just like this conversation above. They have no system in place for death accounts. Therefore something as simple as liquidating an account and mailing a check payable to an estate. Becomes an ordeal which drags out for months and months. Even when they do have a system in place getting a bank to issue an estate check takes so many phone calls and forms…all the back and forth just ends up racking up more attorney’s fees and results in delayed distributions. If a bank incurs enough unpaid penalties or fees. An attorney must then litigate a civil claim along with the probate administration.
Probate and all of the headaches associated with it can easily be avoided by starting with the proper planning. Even a small estate can cost thousands of dollars to distribute.