When it comes to estate planning, most people focus on the big-ticket items like the family home, bank accounts and investments. This makes it easy to lose track of certain assets. It could be a forgotten savings account, an old stock certificate or even a piece of jewelry tucked away in a safety deposit box.
Assets left out of your estate plan can become a source of conflict among your loved ones after you’re gone. Disputes can arise over who gets what or how an asset should be divided, especially if you did not specify this. Without clear direction, emotions can run high, sometimes ending in costly court battles.
It may require reopening succession proceedings
If the forgotten asset is discovered after the estate is settled, Louisiana law allows for the case to be reopened. Depending on the circumstances, the court may reappoint the original succession representative or appoint a new one. It will also decide how the asset will be handled.
Reopening succession can be a time-consuming and costly process. Your loved ones may need to go through additional legal steps, such as filing court petitions and providing notice to interested parties. This can also lead to delays, disputes and unexpected financial burdens like taxes.
Take proactive steps to secure your legacy
You do not want to leave out assets or make other mistakes that could create unnecessary complications for your loved ones. To head off these issues, conduct a thorough inventory of all your assets to ensure that everything is accounted for. This includes checking for dormant bank accounts, old retirement funds and physical valuables you may have overlooked.
Regularly updating your estate plans is equally prudent, especially after acquiring new property or closing accounts. This helps ensure that nothing is left out and reduces the risk of complications for your heirs.
Most importantly, consider seeking legal guidance. This can help you create safety nets like a pour-over will or residuary clauses in your will to ensure that assets that slip through the cracks are smoothly handled after you’re gone.