Settling a loved one’s estate can involve figuring out what they owned. However, even after probate has started, you might discover something you didn’t know was there. This could be an old bank statement, an investment account, or property that wasn’t included in the original estate inventory.
What happens if you discover a new asset after probate has started? Under Florida Statutes § 733.604(2), there are ways to address newly discovered property.
Does the Discovered Asset Have to Go Through Probate?
Not everything a person owns will pass through probate. Some assets can transfer directly to another person through a valid beneficiary designation or a right of survivorship.
For example, a bank account held solely in the deceased person’s name without a payable-on-death designation may be a probate asset. However, an account with a valid beneficiary designation may pass directly to the named beneficiary. Real estate, investment accounts, retirement accounts, and insurance proceeds are subject to different rules depending on how they were owned and whether a beneficiary was designated.
So, before you assume that an asset must be added to the estate, you will want to work with a probate administration attorney to review the ownership documents and take the next steps.
What Happens If Probate Is Still Open?
If probate is ongoing, discovering an additional asset doesn’t mean the entire process must begin again.
Under Florida Statutes § 733.604(2), when a personal representative discovers property that was omitted from the original inventory, the personal representative must file a verified amended or supplementary inventory. This must identify the additional property and its estimated fair market value as of the date of death.
Depending on the situation, additional records may need to be gathered, the asset may need to be valued, and other steps may be needed before it can be distributed. While the discovery can add work to the process, it does not necessarily change the governing inheritance rules. However, how the asset is titled, any beneficiary designation, and the estate’s expenses, creditor claims, taxes, or other statutory rights may affect how it is distributed.
What If Probate Has Already Closed?
Fortunately, closing an estate does not prevent you from resolving the issue. Florida Statutes § 733.903 states that the final settlement of an estate and the discharge of the personal representative do not stop further administration. An interested person may petition the court in the original probate proceeding for relief. The petition must meet the rule’s requirements, including:
- Providing the petitioner’s name, address, and interest in the estate
- Explaining why further administration is necessary
- Describing the additional property, including its approximate value and location
- Identifying the relief requested
For example, if a family discovers an investment account after the personal representative has been discharged, additional administration may be needed to address the account and determine who is entitled to receive it.
Who Gets the Newly Discovered Asset?
This distribution depends on the ownership arrangements and inheritance rules. If the asset belongs to the probate estate, it is administered under the deceased person’s valid will or Florida’s intestacy laws. That happens after applicable estate obligations and statutory rights are addressed.
Before transferring the asset, the personal representative should work with the estate’s attorney to see who is entitled to receive it and whether any additional requirements must be satisfied.
Get Help with a Newly Discovered Probate Asset
What happens if you discover a new asset after probate has started? Have you uncovered a major problem or another step in settling the estate? A Florida probate administration attorney can see whether the property belongs to the estate and explain what procedures apply.
If you’ve discovered an asset that may belong to a deceased loved one’s estate, Niebla Probate Firm can assist with your options. Reach out today for a consultation.
