Asset identification and recovery is a crucial step in an estate’s administration. Before probate progresses, the executor or administrator must account for all assets.
However, when the deceased has multiple assets, some of which they did not make known during their lifetime, it is not uncommon for one or two properties to go unnoticed in the executor or administrator’s asset discovery and only resurface after probate has closed.
So, what happens then?
Good news and bad news
The good news is that Nevada allows a new petition for probate for assets found after the proceedings have closed. This petition is technically a subsequent administration under the original probate number.
The bad news is that when dealing with the newly discovered assets, the courts will consider their amount in addition to the amount of the previously probated assets to determine which type of probate they will require. When the total asset amount exceeds $100,000, a summary administration will take place. However, a full administration is necessary if the amount exceeds $300,000. Depending on the type of probate, the proceedings may be lengthier and costlier.
The importance of asset recovery during the initial administration process
Identifying and recovering all assets at the start of the proceedings is crucial for multiple reasons. First, it prevents heirs and other interested parties from illegally acquiring properties before probate. Second, it allows the executor or administrator to resolve debts accordingly. Lastly, it protects the heirs and beneficiaries’ rights to their share of the decedent’s estate.
Improper asset recovery leading to delayed discovery can result in additional creditor claims, increased taxes and other serious repercussions for the estate, the heirs and beneficiaries. Even if the state allows the reopening of the estate, it will cost additional time, money and effort.
For those designated as an executor or estate representative, teaming up with a competent and knowledgeable legal representative can help avoid these mistakes.