Last WIll and Testament

[Jagmandave]

My mom passed away about 3 years after my dad. When he died, they had everything pretty well organized, wills written etc, and most everything just passed over to mom. After mom died, it took my sister (who had been appointed executor) about 18 months to settle the estate, file tax returns etc. She took a fee of $1500 for her work - which I and all my other 7 siblings thought was completely appropriate given the amount of work involved even in such a simple disposal of assets. Bottom line, your time is worth something, don't be shy to expect some compensation.

Also, keep detailed records of everything and share them with anyone apppropriate. The only thing that bothered me about the way my sister handled the estate is that I could not get any answers to any questions thru out the process. It wasn't that I didn't trust her, I just had some things to sort out on my end and could not get simple answers. Keep everything as transparent as possible, IMHO.

 

[tractorwheel]

keep in mind that the power of attorney ceases upon death, AND also understand that different states may handle things differently. I would strongly advise that these "important" documents not be in a lock box at the bank because they will be locked down upon death as well as the accounts will be frozen. /forums/images/graemlins/tongue.gif

 

[Sigarms]

Hit the nail on the head in my Aunts case.

Had to laugh, I now understand to an extent why, when my uncle died some years ago (his wife died previously), when his only son "went through the house" he found a "substantial" amount of green cash under the bed with a note from his father telling him "whatever you do, don't blow this money! Sorry to say, if you knew my cousin, he did waste it in no time on things he really didn't need and from our last conversation some time ago (with my cousin), he's in some "hard times" now with work and house payments.

I'm sure he (cousin) wishes he could of turned back time now if he knew then what he knows now.

 

[DannyD]

Thanks guys. My name is on all accounts, lockbox, and all the investments.

As far as the house etc goes, it is paid for, and IF someone puts a lein on thier part, shame on them......they will answer to me and the attorney. We all agreed to not do this. We do actually know a situation where the daughter was named as owner of the homestead, the next day she borrowed on it......and one of her parents was still alive and living there. This will not happen here. We are all doing well enough that we do not need to do this anyway.

None of the accounts investments etc are in any names but mine. This is so that I can pay any final expenses not covered and for the appointed attorney, who at the time of dispensation will have the final totals and distribute the inheritance.

 

[Richard]

This is directed to none, yet to all...

I'm not an attorney but in what I do, we deal with these things from time to time.

I can't stress my belive in this enough...

LEARN ABOUT TRUSTS!!!

Here's the bottom line as I see it...

When someone passes, "SOMEONE" is going to have to reorganize & distribute their "stuff". You don't have the legal authority to do so until after you get Letters of Testemtary, copies of death certificates, perhaps state tax waivers blah blah blah... OH, and for stock certificates (in paper form which I know is dwindling), you would a court certified (original) letter of testemtary LESS than 30 days old.. what if you have one, then start getting the state tax waiver form (if needed). If it goes beyond 30 days to deal with the tax waiver forms, your testemtary form is now stale and you have to go back to the courts to get another one...

major disruptions & pain in the hiney.

I'm not a lawyer, but everything I've read/learned...

If it's in a trust, then while the person is living, THEY organize their "stuff" by mere stroke of their pen without (you as executor) having to get all the legal documents.

What happens is people hear $500 for a will or $3,000 for a trust... /forums/images/graemlins/shocked.gif and they go the "cheap" route not realizing that later on when the probate process comes around, they will end up costing perhaps a LOT more than $3,000.

Remember the old adage "You can pay me now, or you can pay me later"

Wills can be contested, Trusts are a LOT more secure. Trusts (as i understand it) can be amended by you by writing on the document (although it might be bad way of doing it) a Will would have to be rewritten.

A trusts control (upon the person's passing) immediately transferrs to the successor trustee who then has the immediate authority to "deal" with the assets in the trust and

(ding ding ding ding...)

CAN SKIP THE PROBATE PROCESS!!!

Again, I'm not an attorney, I can't swear that all the above is 100% true in all cases, it's just based on my own research and conversations with a trust attorney. I could go on (as I can easily get carried away)

Oh, MAJOR point... a TRUST can PRESERVE BOTH ESTATE EXEMPTIONS when you pass away

(this kills me because my father in law squandered this)


If you have a 4 million dollar estate & you are married WITH A TRUST...

When person "A" dies, the trust creates an A/B trust (A for alive person & B for dead/"buried" person)

Federal estate exemptions today are (I think) 1 1/2 million dollars TAX FREE to your heirs.

So, you put that money into trust B. The surviviing spouse STILL gets to use/enjoy that money. It only moves to the kids AFTER the remaing spouse dies.

Upon the remaining spouse's passing, then THEIR allowed to exempt 1 1/2 million.

So, the kids can net 3 million estate tax free with a properly setup trust.

Same deal with an "I love you will" (all goes to spouse), the spouse now has an estate of say 4 million. The spouse passes and 1 1/2 million goes to kids leaving 2 1/2 million of value left over to be taxed at what, 45%?

So, simple question if you understand this...

Would you rather leave your kids (per this example) THREE MILLION dollars of value and them pay 45% tax on one million, OR, would you rather them receive 1 1/2 million estate tax free, and pay estate tax of 45% on the remaing 2 1/2 million??

Do the math, get an attorney, get a Living Trust

(pant pant pant) my fingers are worn out. Sorry for the book & mispellings lol.

My mother has a trust and for the life of me, I never understood why (small estate) NOW I "get it".

In her case, it's not so much the passing of the estate that will be MY benefit (I'm her executor, AND successor trustee). No, the main benefit that will fall on me, is EASE OF SETTLEMENT!

She has saved me a LOT of mental / emotional grief at what is clearly an emotional time for those involved.

If you love your kids, family... find out about a living trust & get an attorney that FOCUSES on them.

Lucky for me, (and I'd be happy to give his name to you privately, he might know someone in your area)..anyways, lucky for me, just across the street from me is an attorney that not only "specializes" in estate law (can I use the word specalizes with attorneys??) but he ALSO happens to be a CPA so he's well versed in the legal realities and the tax law realities.

Trying to get my father in law to do one, said that i'd pay for it. Quote is $15,000 for this entire package (250 acres, another 100 acres, multiple owners, multiple houses...very complicated package) This is not a "family walking in" kind of trust.

Anyways, my offer stands. If anyone cares to get his name & see if he can direct you to someone.

Better yet, get this book and read it The Living Trust, by Henry Abts

ok, I've GOT to stop here lol

/forums/images/graemlins/grin.gif