What Happens If You Find Assets After Probate? What to Do and How to Reopen an Estate

Picture this: You’re cleaning out your late father’s attic and stumble upon a dusty folder labeled “Stock Certificates – 1985.” Your heart races. Could this be worth thousands? But then reality hits—probate closed years ago, the estate was settled, and your siblings already split the inheritance. So… who gets this forgotten treasure? Can you just cash it and move on? Or does this mean dragging everyone back to court?

As an estate attorney, I’ve seen families unravel over a lost savings bond or a vacation home no one knew existed. Let’s cut through the confusion and answer the burning question: What happens when you find assets after probate? Spoiler: It’s fixable, but you’ll need to act fast—and avoid some costly mistakes.

Key Takeaways

• Assets discovered post-probate may require reopening the estate—a process with strict deadlines (e.g., 1 year in California, 3 years in New York).
• Unclaimed assets can trigger tax bombs (IRS penalties) or family feuds if handled improperly.
• Living trusts and pour-over wills are your best defense against future surprises.

Step 1: Who Owns the Asset? (It’s Not Always Obvious)

First, figure out if the asset was:

• Included in the will: Check for a residuary clause (a catch-all for leftovers). If it’s there, the named beneficiary gets it.
• Not in the will: State intestacy laws kick in. For example, in Texas, a forgotten bank account goes to legal heirs (spouse, kids, siblings) even if probate closed years ago.
• Part of a trust? If the asset was meant for a trust but never transferred, a pour-over will might save the day (but probate could still be required).

Real-Life Example: A client in Florida found her dad’s undeclared boat after probate. Since the will had a residuary clause, the boat went to her stepmom—sparking a bitter feud with the siblings.

Step 2: Reopen Probate (Yes, It’s Possible!)

Most states let you reopen probate for “after-discovered” assets. Here’s the playbook:

1️⃣ File a Petition: Submit a Petition to Reopen Probate (your attorney handles this).
2️⃣ Alert Everyone: Notify heirs, creditors, and beneficiaries—even that estranged uncle.
3️⃣ Appoint an Executor: The court reappoints the original executor or assigns a new one.

State Deadlines to Know:

• California: 1 year to reopen probate (Probate Code § 12252). Miss it, and the state claims the asset.
• Florida: 2 years (Florida Statutes § 733.903). Non-residents? You’ll need probate in both Florida and your home state.
• Texas: Small estates (under $75k) can skip probate with a Small Estate Affidavit.

Step 3: Dodge Tax Bombs and Family Drama

Found money sounds great—until the IRS or sibling rivalry ruins the party. Watch out for:

• Federal Estate Tax: If the estate’s total value (including the new asset) exceeds $13.61 million (2024), taxes apply.
• State Inheritance Tax: Pennsylvania charges siblings 4.5%; Nebraska hits distant relatives with 18%.
• Income Tax: Sell that old stock? Capital gains taxes could bite the heir.

War Story: A family in Ohio inherited a forgotten rental property, rented it out for years, and never told the court. When the IRS found out, they owed back taxes + penalties—and a cousin sued for “fraud.”

Related article for you:
Do Pour-Over Wills Avoid Probate? The Hidden Truth Every Estate Planner Must Know

Step 4: Distribute the Asset (Without Starting a Feud)

Once probate reopens and taxes are paid:

• Residuary Clause Rules: The asset goes to the will’s “leftover” beneficiary.
• No Will? State law splits it among heirs (e.g., spouse gets 50%, kids split the rest in Texas).

Watch Out: Late-discovered assets often ignite family conflicts. Example: Siblings fighting over a parent’s vintage car—one says, “I maintained it for years!” The court? It doesn’t care. Legal ownership trumps sweat equity.

Step 5: Prevent Future Headaches

Avoid post-probate surprises with these steps:

1. Be a Detective Now: Keep a living inventory of assets (deeds, crypto, safety deposit boxes) and update it yearly.
2. Use a Living Trust: Assets in a trust skip probate entirely, even if discovered later.
3. Label Everything: Leave clear instructions like, “The bonds are taped under the desk, Karen!”

State Spotlight: Local Loopholes and Landmines

• California: Forget to reopen probate within a year? The state claims your asset via escheatment (yes, it’s as scary as it sounds).
• New York: Unclaimed bank accounts go to the state after 3–5 years—search NY’s unclaimed property database ASAP.
• Texas: Use the Texas Unclaimed Property Portal to hunt for assets before probate closes.

Can’t We Just Split It and Skip the Court?

Bad Idea. Here’s why:

• Creditors Can Sue You: Unpaid estate debts become your problem.
• IRS Audits: The taxman always finds out.
• Heirs Could Sue Later: “Why did my sister get Grandma’s diamonds?!”

Pro Tip: In Maryland, heirs have 6 months to file inheritance taxes for late assets. Miss the deadline? Penalties pile up fast.

What If No One Claims the Asset?

After 3–5 years, unclaimed assets go to the state. But you can still recover them!

• Search your state’s unclaimed property database (e.g., California’s ClaimIt).
• File a claim with proof of heirship (birth certificates, death certificates).

Pros vs. Cons of Post-Probate Assets

Pros	Cons
Ensures legal distribution	Costly court fees (up to 7% of the asset’s value)
Settles old debts	Family drama (lawsuits, grudges)
Complies with tax laws	Time delays (months or years)

Bottom Line: The legal risks outweigh the convenience of “keeping it quiet.”

Final Thoughts

Finding assets after probate is like discovering a landmine in your backyard—it’s stressful, but fixable with the right tools. Don’t wing it, don’t DIY, and definitely don’t assume “no one will notice.” Reopen probate, settle taxes, and distribute the asset legally. And next time, promise me you’ll label those safety deposit boxes, okay?

Need Help?

• Search nationwide for unclaimed assets: NAUPA
• IRS tax guidelines: Publication 559
• Find a local probate attorney: Your State Bar Association