Inventory and The Importance of a Good Lawyer for Cost Reduction

Inventory and The Importance of a Good Lawyer for Cost Reduction

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The situation is extremely common. A relative dies and leaves assets for his heirs. Inevitably, it will be necessary to promote the opening of the inventory. And many people are already starting to get desperate, imagining that the costs will be high. My goal in this text is not to present probate attorney fees, a fee schedule or make a budget, but to show what expenses a person will have with an inventory. I wrote this post based on my experience searching for a probate attorney near me. For your info, I found a Texas probate lawyer easily by searching online.

First, people need to know that there are two ways to take an inventory: judicial inventory, which is done before the Judiciary; administrative, or extrajudicial, inventory that is made before a notary. The administrative inventory will be possible when all the heirs are in agreement with the sharing, are capable and there is no will. In the event of a will or incapable heirs (minors or mentally disabled) the inventory must be judicial.

Both in the judicial and administrative inventory there are costs, which is the amount paid for the services performed. In the judicial inventory, the heirs collect the initial and final court costs and in the administrative inventory, they collect the fees. There is no great difference in values ​​between one and the other.

In all inventory, whether judicial or extrajudicial, there will be the collection of inheritance taxes. This tax is calculated based on a progressive table, which increases as the value of the inventoried assets increases. The estate attorney such as the small estate affidavit probate attorney must have this knowledge, under penalty of harming his client with more expensive and unnecessary taxes.

One of the situations that can greatly alter the calculation of taxes is knowing the difference between assignment and waiver of hereditary rights. As an example, we can mention the hypothesis of an heir giving up his share to another heir. As the case may be, it is more financially advantageous if there is a waiver. I explain: every time a person dies and leaves assets to his heirs, there will be an incidence of tax. If, after an heir receives his share he wishes to transfer this same share to another heir, the tax will be levied again, that is, twice the same tax. However, if the factual situation allows, it is possible that there will be a resignation instead of an assignment, which means that the first heir “did not wish to receive his share”. I emphasize that this hypothesis must be analyzed by the probate attorney to see compliance with the legislation. So if you ask yourself “Do I need a probate attorney?”, the answer would be Yes!

Speaking of a probate lawyer, his presence is required by law in both the judicial and administrative inventory. And this is yet another expense to be counted. The probate or estate lawyer will be the professional who should indicate to the heirs the best and cheapest solution for the inventory, hence it is recommended to hire a professional with knowledge in the area. A “cheap” lawyer (and most likely without the necessary knowledge) can, in the end, represent a loss for lack of more efficient guidance.

The great advantage of the administrative inventory is the speed. Once all the heirs are in agreement, and as long as they present all the necessary documents, the public deed of the inventory is done in a few days. In the judicial inventory, there will be competing with thousands of other cases to be decided by the same judge. Therefore, I recommend that an inventory be made only through the courts in the event that it is not possible to perform an inventory by the notary. You should also contact a local attorney to save your budget. If you are a Texan, a Texas probate attorney is the most sensible choice.