Probate is simply the process of administering a decedent’s estate. Most of us have heard the stories about how long and headache filled the probate process usually is, and we dread it when we actually have to face it.
Done right, the probate process for a house in Austin can be as simple as four easy steps. On the other hand, the dread and simplicity of the process can open people up to certain probate scams. Let’s take a look.
The Probate Process for a House in Austin – How to Avoid Getting Scammed
Probate Process for a House in Austin
Probate usually follows a person’s passing without the right kind of trust in place. Probate is the process by which the decedent’s debts are settled and his or her property (held on his or her name alone and not otherwise legally distributed) is transferred to beneficiaries and heirs.
Typically, the probate process follows four steps.
- The first step is to file a petition with the probate court to admit the will and appoint an executor, or if there’s no will, to appoint an administrator of the estate. A hearing date is set, and notice of the hearing is published locally.
- After being appointed by the court, the decedent’s personal representative gives notice to all creditors, and an inventory of the estate is made.
- After determining which claims are legitimate, the personal representative pays all expenses, debts, and taxes from the estate. Sometimes, this involves selling estate assets to meet obligations.
- Assets (legal title to a house, for instance) are disbursed according to the decedent’s wishes expressed in the will or, in case there is no will, according to the state’s intestate succession laws.
This is the probate process for a house in Austin and for the entire estate as well. Just be wary about any scams that may pop up along the way.
Common Probate Scams
These are some scams out there that owe their recurrence (and effectiveness) to the web, and they always target the vulnerable.
- Probate Avoidance Scam – The perpetrators of this scam usually target the elderly. It involves convincing victims to buy fraudulent products that claim to help them avoid probate. Once the scammers receive the money, they never deliver, or they provide a product that is legally useless.
- Inheritance/Estate Tax Scam – Some states still levy an inheritance or estate tax. Using a trusted person’s or organization’s name, scammers contact potential executors/personal representatives informing them that they stand to inherit a bunch of money. The only catch is that – because in these states the tax must be paid before probate can go forward – the victims must first send the scammers an inflated tax.
- Fraudulent Listings Scam – This one owes its effectiveness to the popularity of sites like Craigslist for home shoppers (especially renters) and applies particularly to the probate process for a house in Austin. Scammers research the property of recently deceased individuals and advertise it for rent. Then, when the scammers collect the deposit and first month’s rent, they disappear, leaving the people engaged in probate to deal with the upset victim.
If you’re facing probate, especially the probate process for a house in Austin, it’s probably not as ominous and frightening as it first seems. Knowing what it involves and being aware of the common probate scams are good first steps – but there’s more to consider.
If you’d like to learn more about probate and how to get through it smoothly, contact us by phone at (512) 345-9090 or fill our simple form.