From Kiplinger · · 1m 30s
Why Inheritance Delays Happen After Death
Estate planning doesn't guarantee quick inheritance access after death.
In brief
Estate planning doesn't guarantee quick inheritance access after death. A will doesn't avoid probate, and heirs may face delays accessing funds due to pending death certificates, autopsies, bank freezes, or court processes. Originally reported by Kiplinger.
My mom's unexpected death
My mom died unexpectedly one month after creating her will, listing her cause of death as pending on the death certificate.
“She was sure to include a clause that funds from her estate could be used to cover costs, like her memorial service.”
Death certificate challenges
A death certificate listing cause of death as pending may delay accessing bank accounts, life insurance, and other financial transactions.
“Banks and credit unions may or may not accept a death certificate listing a cause of death as pending.”
Autopsy results delay
Autopsy results can take months or even years to process, especially in high-population areas with backlogs.
“Some tests can take more than a year with a backed-up lab.”
Bank account freezes
Banks may automatically freeze accounts after death, especially if the deceased was receiving benefits like Social Security.
“The Social Security Administration is one of the first ones to learn of the death, and they're the first to recover any additional payments.”
Probate process
Even with a will, estates often go through probate, a court process that can take months to years to complete.
“Having a will does not avoid probate, it almost guarantees some prob”
Costs of probate
Probate fees include court charges, inventory fees, and potential tax costs that can add up significantly.
“In some counties, an inventory fee is a percentage of the total value of the estate's assets.”
Funeral costs
Funeral costs often exceed $15,000 to $20,000, including services, caskets, and transportation.
“More than half of adults ages 45 and older estimate funeral costs to be less than $10,000.”
Mortgage payment delays
Mortgage lenders may allow up to three months for missed payments before foreclosure proceedings begin.
“Mortgages can often be left unpaid for about three months before a mortgage lender starts to talk about foreclosure.”
Solutions for heirs
Prepaying funerals, final expense insurance, joint accounts, and living trusts can help heirs access funds faster.
“Consider a living trust in addition to a will to access accounts much faster than through probate.”
Why estate planning matters
Estate planning costs several thousand dollars upfront but saves heirs money and time during probate.
“Estate planning is so much less expensive than fees beneficiaries are facing when going through probate.”
The bottom line
A will doesn't avoid probate, and heirs may face delays accessing funds due to pending death certificates, autopsies, bank freezes, or court processes.
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