During probate proceedings and estate administration in Minnesota, personal representatives have substantial authority. They carry out the instructions provided by the deceased party in a will or follow state intestate succession rules while distributing assets.
They also assume numerous responsibilities. Personal representatives must locate and catalog all of the assets belonging to the decedent. They must submit records regarding the extent of the estate and its financial obligations to the courts. After addressing outstanding debts and tax obligations, personal representatives can then distribute what remains among beneficiaries or heirs.
In some cases, those expecting to inherit from an estate may believe that there are hidden bank accounts or assets unaccounted for during the probate process. How can concerned individuals identify and address hidden property?
Conduct a forensic review
Those close to the deceased individual may have copies of key financial records. They may also have personal memory of accounts or assets somehow excluded from the probate process. Conducting a thorough financial review, potentially with the support of a forensic accountant, can help trace income and identify hidden accounts or assets.
Request an audit
The probate courts can order a formal audit in scenarios where there are concerns about misconduct. Personal representatives owe a fiduciary duty to beneficiaries and heirs. When there is a credible reason to suspect misconduct, such as the misappropriation of assets excluded from the inventory of estate resources, it may be possible to have the courts order an audit reviewing the estate and all actions performed by the personal representative.
File a formal petition
Even if probate has already closed and the estate has no assets to distribute anymore, those who become aware of hidden resources or property can ask the courts to act. A Petition For Descent of Omitted Property can reopen the probate process. Any newly-discovered assets are then subject to distribution either in accordance with the estate plan of the decedent or intestate succession laws.
Those concerned about hidden assets during estate administration may need to initiate probate litigation to hold a personal representative accountable. Learning more about the legal process of identifying and securing hidden resources can help those expecting to inherit from an estate.