The unfortunate reality is that many Americans have “forgotten assets”—unclaimed property, dormant bank accounts, or policies they’ve simply lost track of—that can create complications during probate, even with a well-crafted estate plan. These assets, while potentially small individually, can collectively represent a significant sum and, if not properly addressed, can prolong the probate process and diminish the value of the estate. Steve Bliss, a leading Living Trust & Estate Planning Attorney in Escondido, emphasizes the importance of proactively identifying and incorporating these often-overlooked items into a comprehensive estate plan to ensure a smooth transfer of wealth and avoid unnecessary legal hurdles. According to the National Association of Unclaimed Property Administrators (NAUPA), nearly $42.3 billion in unclaimed property was reported by states in 2022, highlighting the sheer volume of assets awaiting their rightful owners—or their heirs.
What is considered a “forgotten asset” and why is it a probate issue?
“Forgotten assets” encompass a wide range of items, including dormant bank accounts (often those with inactivity for 3-5 years), uncashed checks, unpaid wages, insurance policy proceeds (life, annuity, etc.), stock dividends, mineral rights, safe deposit box contents, and even digital assets like cryptocurrency or online accounts. These assets often fall outside of typical estate planning considerations, meaning they aren’t automatically included in a revocable living trust or subject to beneficiary designations. Consequently, when the estate owner passes away, these assets must go through the probate process to be legally transferred to heirs, adding time, expense, and potential complications. Probate fees can range from 3-7% of the estate’s total value, so even small forgotten assets can contribute to these costs. It’s estimated that over 10% of estates experience delays due to undiscovered or unclaimed assets.
Can a Living Trust really help with these forgotten assets?
A properly funded revocable living trust is the cornerstone of probate avoidance, but it’s not a silver bullet for all forgotten assets. The trust needs to be broad enough in scope to encompass potential future acquisitions and changes in asset ownership. Steve Bliss often advises clients to include a “catch-all” provision within their trust, specifically stating that any assets not specifically named in the trust but belonging to the grantor at the time of death should be deemed part of the trust estate. This can provide a legal basis for claiming forgotten assets, but it’s still crucial to actively search for and identify these items before death. A robust asset inventory, updated regularly, is therefore a critical component of an effective estate plan. Consider this: a client of mine, Margaret, meticulously planned her estate, creating a well-funded trust and naming clear beneficiaries. However, after her passing, her family discovered a small, dormant savings account from a summer job she had decades prior. The account contained just $800, but it required a separate probate proceeding and added months to the estate settlement process.
What steps can I take *now* to find and document these assets?
Proactive asset discovery is the key to minimizing probate complications. Start by compiling a comprehensive list of all your financial accounts, insurance policies, and other potential assets. Don’t forget to check state unclaimed property databases – each state maintains a website where you can search for unclaimed funds. Explore online search engines specifically designed to locate unclaimed assets. Review old tax returns, bank statements, and insurance policies for clues. Look for old stock certificates, bonds, or other investment records. Pay particular attention to any assets held in your maiden name or under previous addresses. Furthermore, it’s wise to inform a trusted family member or executor about the existence of these assets and where to find documentation. I once had a client, Robert, who was a collector of antique coins. He meticulously documented his collection but failed to mention it to his children. After his passing, the children were overwhelmed by the task of identifying and valuing the coins, causing unnecessary stress and delays.
If I find forgotten assets, how do I ensure they’re included in my estate plan?
Once you’ve identified any forgotten assets, the next step is to incorporate them into your estate plan. The simplest way to do this is to schedule a review meeting with Steve Bliss or another qualified estate planning attorney. You can then update your trust document to specifically include these assets or, if the amounts are small, add a schedule or attachment listing them. Alternatively, you can create a separate “Memorandum of Specific Bequests” that outlines how you want these assets distributed, ensuring it’s referenced within your trust document. Remember, it’s not enough to simply *know* about these assets; you must document your intentions clearly to avoid ambiguity and potential disputes. I recall another client, Eleanor, who had a small life insurance policy she’d forgotten about. She simply wrote a note to her daughter stating she wanted the proceeds to go to a specific charity. Unfortunately, without this instruction being formally included in her trust or will, the proceeds became part of the general estate and were distributed according to the standard probate rules. With a bit of foresight and a proactive approach, you can avoid these pitfalls and ensure your forgotten assets are handled exactly as you intend.
<\strong>
About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
banckruptcy attorney
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
>
Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “How does a living will differ from a regular will?” Or “Can real estate be sold during probate?” or “Do I still need a will if I have a living trust? and even: “What’s the process for filing Chapter 13 bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.