Full Version: Where would your money go if you passed away?
Let's say you're single and still living with your family. Would it go directly to them? This is all assuming all the bank accounts are all under your name ONLY.
It wold go where your will directed it. You DO have a will don't you?
QUOTE(NARC @ 4-5-07, 10:58am) 
It wold go where your will directed it. You DO have a will don't you?
No. It never crossed my mind to have one so early.
How does a will work? Does it have to be notarized?
Good thread ebtyes! I need to do this too.
QUOTE(Waddle @ 4-5-07, 11:11am)
Good thread ebtyes! I need to do this too.
Here as well..assumptions as to where things will go are usually not what happens
QUOTE(ebytes @ 4-5-07, 11:01am)
No. It never crossed my mind to have one so early.
How does a will work? Does it have to be notarized?
How does a will work? Does it have to be notarized?
Mine didn't, but it had to be witnessed by a number of unrelated 3rd parties.
And Iam is right. Just because something seems to make sense, that doesn't mean a thing when your property goes through probate. Get that FAR will program from Staples (it was with Turbo Tax, not sure if it's over) and just create a very basic one. PLENTY of examples on the web also.
So there's no need to spend big money and hire a lawyer right? 
At some point someone had posted a will form that made it an easy process I believe. It has been a while if I am correct and maybe if someone could post something similar that might help many of us. I see no reason to go the expensive route when the same thing could be accomplished cheaper.
Yeah, no need for a lawyer if you don't have anything crazy you want to be done.
edit: But you do want to make sure that your will will be accepted by the state that you are living in. For instance, maybe in your state your will does have to be notarized. Or it has to be signed by 2 people, or 3 people.
I think execution will be more state specific than content or format. But then again, IANAL.
edit: But you do want to make sure that your will will be accepted by the state that you are living in. For instance, maybe in your state your will does have to be notarized. Or it has to be signed by 2 people, or 3 people.
I think execution will be more state specific than content or format. But then again, IANAL.
You should also have a living will, health care proxy or advance directive. These are usually available for download from many hospital or hospice care sites, and need to be signed & witnessed. It'll help make sure that your wishes will be followed and relieve your family from the burden of trying to figure out what you would want.
My sister emailed me an article which relates to this:
Embracing will power
Not sure if this is the standard or just state-specific, but I this should be the practice in NY.
Embracing will power
QUOTE
Easy to ignore, but best way to ensure your final wishes are carried out
When Harriet Flehinger's 63-year-old husband, Steven, passed away last July, she was glad they had taken the time to draft a will.
Flehinger, 59, also realized that she would have to revise it. Her main concern was making sure her 96-year-old mother would be provided for if anything were to happen to her. She had it redrawn to leave enough money to her mom and her mom's 83-year-old companion to ensure they wouldn't have to worry about their future.
"There is money in my new will left to him - either for him to take care of her, or for his family to take care of him because they're not wealthy," Flehinger said.
"My mother is much more dependent on me than any of my kids are," said Flehinger, whose three children are all grown.
Major life changes can often be a cue that it's time to make sure your affairs are in order.
If you don't have a will - a 2005 Gallup poll found nearly two-thirds of Americans younger than 50 are in this group - it's worth considering, said lawyer Gary Friedman of Greenfield Stein & Senior in Manhattan.
Owning a home, investments or other valuables can make drafting a will crucial. Depending on your circumstances, using a lawyer may be money well spent.
"One of the valuable services a lawyer can render is asking, 'Does this plan make sense for you,' " Friedman said.
A lawyer can advise on how to leave more to a child who's struggling than to one who's more successful, for example. They can also guide you through legal requirements. The details may seem trivial, but can make all the difference if a will is contested in court.
"Wills are one of the few legal documents that still have some ceremony and formality that go along with them," Friedman said.
Nonetheless, many people don't need a lawyer to prepare a will. Preprinted forms available at stationery stores will suffice. Still, you'll need to do your homework, according to Denis Clifford, a California lawyer and author of "Plan Your Estate" and "Estate Planning Basics."
"Most people can express their desires in one or two English sentences," Clifford said. "There's no reason that should be legally complicated."
Flehinger decided to get a lawyer's help with her will. Leslie Wilsher, a colleague of Friedman, helped her revise it. "She gave me some tax advice that I wouldn't have come up with on my own," Flehinger said.
If you're ready to document your final wishes, Flehinger recommended thinking it through.
"Don't feel like it's something you have to decide in 48 hours," she said.
Passing terms
• If you die without a will, anything you own goes to your closest surviving relatives. For a single person, that usually means your parents (presuming they're still living). For married couples, it's the surviving spouse and children, if there are any. If you're unmarried with adult kids, they'll inherit your possessions.
• A will can't do everything. You can't disinherit your spouse, for example. If you're married and bought your home with your spouse, it's unlikely you could leave it to anyone else. Even if you choose someone else as a beneficiary of a life insurance policy or retirement account, your spouse could make a claim.
• The government gets control of your estate only if you have no will and no surviving kin.
When Harriet Flehinger's 63-year-old husband, Steven, passed away last July, she was glad they had taken the time to draft a will.
Flehinger, 59, also realized that she would have to revise it. Her main concern was making sure her 96-year-old mother would be provided for if anything were to happen to her. She had it redrawn to leave enough money to her mom and her mom's 83-year-old companion to ensure they wouldn't have to worry about their future.
"There is money in my new will left to him - either for him to take care of her, or for his family to take care of him because they're not wealthy," Flehinger said.
"My mother is much more dependent on me than any of my kids are," said Flehinger, whose three children are all grown.
Major life changes can often be a cue that it's time to make sure your affairs are in order.
If you don't have a will - a 2005 Gallup poll found nearly two-thirds of Americans younger than 50 are in this group - it's worth considering, said lawyer Gary Friedman of Greenfield Stein & Senior in Manhattan.
Owning a home, investments or other valuables can make drafting a will crucial. Depending on your circumstances, using a lawyer may be money well spent.
"One of the valuable services a lawyer can render is asking, 'Does this plan make sense for you,' " Friedman said.
A lawyer can advise on how to leave more to a child who's struggling than to one who's more successful, for example. They can also guide you through legal requirements. The details may seem trivial, but can make all the difference if a will is contested in court.
"Wills are one of the few legal documents that still have some ceremony and formality that go along with them," Friedman said.
Nonetheless, many people don't need a lawyer to prepare a will. Preprinted forms available at stationery stores will suffice. Still, you'll need to do your homework, according to Denis Clifford, a California lawyer and author of "Plan Your Estate" and "Estate Planning Basics."
"Most people can express their desires in one or two English sentences," Clifford said. "There's no reason that should be legally complicated."
Flehinger decided to get a lawyer's help with her will. Leslie Wilsher, a colleague of Friedman, helped her revise it. "She gave me some tax advice that I wouldn't have come up with on my own," Flehinger said.
If you're ready to document your final wishes, Flehinger recommended thinking it through.
"Don't feel like it's something you have to decide in 48 hours," she said.
Passing terms
• If you die without a will, anything you own goes to your closest surviving relatives. For a single person, that usually means your parents (presuming they're still living). For married couples, it's the surviving spouse and children, if there are any. If you're unmarried with adult kids, they'll inherit your possessions.
• A will can't do everything. You can't disinherit your spouse, for example. If you're married and bought your home with your spouse, it's unlikely you could leave it to anyone else. Even if you choose someone else as a beneficiary of a life insurance policy or retirement account, your spouse could make a claim.
• The government gets control of your estate only if you have no will and no surviving kin.
Not sure if this is the standard or just state-specific, but I this should be the practice in NY.
Maybe even a larger issue for most folks other than it going to a surviving spouse of children which in my case is what I want anyway is the issues of time that it takes for those decisions to actually occur to where the estate is settled. Of course my first line would be my wife and the second my only child but I would surely hate knowing that it takes a long time for that to happen.
QUOTE(IamAddicted @ 4-5-07, 12:29pm)
... but I would surely hate knowing that it takes a long time for that to happen.
That's why I am seriously considering creating a living trust. There's basically no probate, and no time delay.
QUOTE(IamAddicted @ 4-5-07, 11:29am)
I would surely hate knowing that it takes a long time for that to happen.
When my mother passed away, we kids received all our inheritance within 3 months...a major portion of that was from the sale of her house...
QUOTE(kar522 @ 4-5-07, 12:40pm)
When my mother passed away, we kids received all our inheritance within 3 months...a major portion of that was from the sale of her house...
same situation for me however there was a will
QUOTE(IamAddicted @ 4-5-07, 12:15pm)
same situation for me however there was a will
Same here...and it was great that she had things so well organized, even down to where the funeral lunch was to be held, and what she would wear to the big Bingo game in the great beyond...
My brother was her executor...something I wouldn't wish on any of my kids...we have a disinterested third party lined up...
QUOTE(NARC @ 4-5-07, 11:39am)
That's why I am seriously considering creating a living trust. There's basically no probate, and no time delay.
This is a VERY wise idea. Going through probate can be a real pain especially if you live in a state that is different from all of your heirs. You can create your own very easily using the Quicken Lawyer software. Make sure to re-title everything in the name of the trust for it to be effective. This wont save you any taxes, will allow you to control all of your assets all the same way that you do now, and avoid probate.
You definitely want to avoid probate. Some things can be titled POD, or Payable of Death to the person you name, but others must be placed in a trust to avoid probate. Here's the worst part, say you have a $1 million house and there is $100,000 in equity in the house. If it goes to probate, it counts as a $1 million asset and the fees are a percentage of the value, meaning the fee is huge, even though the heirs get very little.
QUOTE(NARC @ 4-5-07, 12:39pm)
That's why I am seriously considering creating a living trust. There's basically no probate, and no time delay.
Here in PA, probate is not a big deal. While some attorneys do seminars and push living trusts, I only do them when a client insists they want one and I can't talk them out of it. Many of the "benefits" can be accomplished through other estate planning means.
QUOTE(ebytes @ 4-5-07, 10:55am)
Let's say you're single and still living with your family. Would it go directly to them? This is all assuming all the bank accounts are all under your name ONLY.
Intestacy laws vary from state to state. Here is a portion of a newsletter I sent to clients a while back. Keep in mind I am in Pennsylvania.
QUOTE
Many married individuals incorrectly assume that upon their death, their spouse will inherit all of their property. Unfortunately that is not the case. A surviving spouse is entitled to all of the deceased's spouse intestate estate if there are no surviving children or parents of the deceased spouse. If there are no surviving children but the decedent is survived by a parent or parents, the surviving spouse is entitled to the first $30,000 plus one-half of the balance of the intestate estate. If there are surviving children who are also the children of the surviving spouse, the spouse is again entitled to the first $30,000 and one-half of the balance of the intestate estate. If there are surviving children of the decedent, one or more of whom are not the children of the surviving spouse, the surviving spouse is entitled to one-half of the intestate estate.
The remaining share to which the surviving spouse is not entitled and the entire estate if there is no surviving spouse is distributed in the following order: (1) to the children of the decedent; (2) if no children survive the decedent, then to the parent or parents of the decedent; (3) if no parent survives the decedent, then to the children of each of the decedent's parents; (4) if no children of the decedent's parent's but at least one grandparent survives the decedent, then half to the paternal grandparents or grandparent, or if both are dead, then to the children of each of them and the children of the deceased children of each of them, and half to the maternal grandparents or grandparent, or if both are dead, then to the children of each of them and the children of the deceased children of each of them. If both of the paternal grandparents or both of the maternal grandparents are dead leaving no child or grandchild to survive the decedent, the half which would have passed to them or to their children and grandchildren shall be added to the half passing to the grandparent or grandparents or to their children and grandchildren on the other side; (5) if no grandparent survives the decedent, then to the uncles and aunts and the children and grandchildren of deceased uncles and aunts of the decedent;
(6) in default of any of the above, then to the Commonwealth of Pennsylvania.
The shares passing under the intestate law are not necessarily equal, but are divided into shares depending on the degree of consanguinity to the decedent. The person claiming an intestate share must survive the decedent by five days.
The remaining share to which the surviving spouse is not entitled and the entire estate if there is no surviving spouse is distributed in the following order: (1) to the children of the decedent; (2) if no children survive the decedent, then to the parent or parents of the decedent; (3) if no parent survives the decedent, then to the children of each of the decedent's parents; (4) if no children of the decedent's parent's but at least one grandparent survives the decedent, then half to the paternal grandparents or grandparent, or if both are dead, then to the children of each of them and the children of the deceased children of each of them, and half to the maternal grandparents or grandparent, or if both are dead, then to the children of each of them and the children of the deceased children of each of them. If both of the paternal grandparents or both of the maternal grandparents are dead leaving no child or grandchild to survive the decedent, the half which would have passed to them or to their children and grandchildren shall be added to the half passing to the grandparent or grandparents or to their children and grandchildren on the other side; (5) if no grandparent survives the decedent, then to the uncles and aunts and the children and grandchildren of deceased uncles and aunts of the decedent;
(6) in default of any of the above, then to the Commonwealth of Pennsylvania.
The shares passing under the intestate law are not necessarily equal, but are divided into shares depending on the degree of consanguinity to the decedent. The person claiming an intestate share must survive the decedent by five days.
QUOTE(penguin110 @ 4-6-07, 7:23am)
Intestacy laws vary from state to state. Here is a portion of a newsletter I sent to clients a while back. Keep in mind I am in Pennsylvania.
See? Have a will so you don't need to worry about all that!
QUOTE(penguin110 @ 4-6-07, 7:19am)
Here in PA, probate is not a big deal. While some attorneys do seminars and push living trusts, I only do them when a client insists they want one and I can't talk them out of it. Many of the "benefits" can be accomplished through other estate planning means.
Any idea how it is in MD? Also, what are the "other estate planning means"? I'm genuinely curious as I said before, I'm looking at a Trust.
It's more for my kids though. My folks are currently the kids guardian if my wife and I pass, and I want them to be able to get our money to raise them. Seemed like a Trust would do that well, since I didn't want the money to be in the kids name for fear that my parents would not be able to use it appropriately.
Every state is different. In Florida IIRC you don't have to worry about probate unless the estate is $1M +
An estate attorney is a good idea if you are executor of someone else's will.
An estate attorney is a good idea if you are executor of someone else's will.
I thought that the estate exemption was set at $2 million??
QUOTE(NARC @ 4-6-07, 7:46am)
Any idea how it is in MD? Also, what are the "other estate planning means"? I'm genuinely curious as I said before, I'm looking at a Trust.
It's more for my kids though. My folks are currently the kids guardian if my wife and I pass, and I want them to be able to get our money to raise them. Seemed like a Trust would do that well, since I didn't want the money to be in the kids name for fear that my parents would not be able to use it appropriately.
It's more for my kids though. My folks are currently the kids guardian if my wife and I pass, and I want them to be able to get our money to raise them. Seemed like a Trust would do that well, since I didn't want the money to be in the kids name for fear that my parents would not be able to use it appropriately.
Sorry, but I have no knowledge on MD law. As for kids & guardians, a trust is what you would probably want, but that would be a trust created under your will and not a living trust. I do trusts all the time, I just don't necessarily recommend living trusts.
Realizing that every situation is unique, I at times recommend; pay on death accounts, joint accounts with rights of survivorship, family limited partnership, etc.
I would recommend that you talk with an attorney in your area. The Allegheny Bar Association here has a lawyer referral service where you can get a 1/2 hour consultation with an attorney for $25.00.
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QUOTE(wheel @ 4-6-07, 10:13am)
I thought that the estate exemption was set at $2 million??
It is for Federal Estate Tax purposes. However, that amount does not necessarily have to do with probate. You can have a taxable estate for Federal Estate purposes in excess of $2 million, that does not require probate.
My spouse and I have a "trust created under the will" which means (to us, at least) the trust does not exist unless we both die. If that happened, the named trustees would be responsible for creating the trust and administering it for our dependents, or they could hand off the responsibility to a bank or brokerage as far as the day-to-day handling and just make the "big" decisions when asked. It doesn't really matter if either of us has a bank account titled in one name or other, so long as the other spouse is the primary beneficiary and the "me-and-spouse trust dated xx/yy/zzzz" is the contingent beneficiary. This way, the dependents don't get saddled with the tax bill and forced to liquidate from receiving the whole estate all at once. Also has age-defined grant percentages-even the most trustworthy 21-year-old shouldn't be handed $$$, lest they make a poor investment which might seem really good at the time, such as questionable real estate, gold or oil futures.
A little issue came up: If the will came into effect, the trustees couldn't immediately access our lock-box because the local bank wouldn't let us name the lock-box account "xyz trust" with no tax id for it yet. Other than having the trustees added as signators (and remembering to change that should we change the named trustees over time), what could we do to simplify this process but not let the trustees access the lock-box unless the will takes effect?
A little issue came up: If the will came into effect, the trustees couldn't immediately access our lock-box because the local bank wouldn't let us name the lock-box account "xyz trust" with no tax id for it yet. Other than having the trustees added as signators (and remembering to change that should we change the named trustees over time), what could we do to simplify this process but not let the trustees access the lock-box unless the will takes effect?
QUOTE(shm @ 4-9-07, 12:50pm)
A little issue came up: If the will came into effect, the trustees couldn't immediately access our lock-box because the local bank wouldn't let us name the lock-box account "xyz trust" with no tax id for it yet. Other than having the trustees added as signators (and remembering to change that should we change the named trustees over time), what could we do to simplify this process but not let the trustees access the lock-box unless the will takes effect?
Under PA law, a safe deposit boxed is to be "sealed" (not opened without the permission of the PA Department of Revenue) when one of renters of the box dies, except if the box is also rented in the name of the surviving spouse. However, the bank can open the box to look for a will, if a person is present who has a key to the box.
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