Addressing Due Diligence Concerns: Common Issues Sellers Face

Due diligence is very important for both the seller and the buyer in the process of estate planning. Due diligence is the detailed examination of the property, business or assets. It is important to know and solve the main problems concerning due diligence in order to have a clear and problem free transition of ownership in the future. To find out more about the importance of due diligence in estate planning, please read on.

What is Due Diligence in Estate Planning and Why is It Important?

This paper aims at exploring the role of due diligence in estate planning, which is the process of evaluating the worth and legality of assets. Clause 6(1)(e) of the Promotion of Administrative Justice Regulations, 2012 requires that sellers verify that their properties and assets are as described and have no legal encumbrances. From the seller’s perspective, this ensures that the seller’s interests are well protected, but also helps the buyer to have a clear mind when making their decisions about the transactions.

What are the common issues sellers face?

Estate tax implications
Title issues
Heir disputes
The most frequent problem that sellers encounter is title issues. It is very significant to establish whether the title to the property is free and clear of liens, easements or boundary disputes, which can be a barrier to a sale. There is need to check the title and solve all the problems that may be identified during the negotiation process.

It is, therefore, important to know the estate tax consequences of receiving an inheritance of property or assets. There may be tax consequences of a property or asset and the seller has to be aware of them. These situations call for the opinion of an estate planning attorney or a financial advisor.

When there are several heirs of an estate, every heir has a right to the estate. This can cause problems during the sales process. The sellers should solve the problems in advance and before they come to court.

How to Handle Due Diligence Risks

To sell or move forward with the selling process it is imperative that one seeks professional help. It is advisable that sellers work with an estate planning attorney, a financial advisor and a real estate agent at the same time to gain the necessary expertise and direction that will help them complete a transaction without a hitch.

There are due diligence concerns that sellers must fix before they begin the estate planning process. To this end, knowledge of typical due diligence and estate planning problems and solutions and collaboration with a team of professionals will enable sellers to proceed with the transactions confidently.

Oklahoma attorney, Kevin L. Miller, PC assists families and individuals of all kinds and can provide sellers with the knowledge and assistance required in the selling process.

He says, “It is my goal to listen to you, to help you identify what you need and want, and to create an estate plan that is tailored to meet your specific situation. You will receive a high standard of personal service with regard to all the details.

You will receive professional, courteous service in a private, comfortable office setting.”