Question about wills and inheritance ...

[Anonymous]

After someone dies, is there a specific period of time during which the heirs must be notified, the will read, probate completed, etc.?

[Anonymous]

You mean a deadline?

[Anonymous]

Yes, I think that's what I mean.

A relative of mine will receive a significant inheritance from someone who recently died. Some of it is cash and some real estate and other non-liquid assets.

He's already starting to spend money in anticipation of this and I am a bit worried. I'm wondering if the executor and the attorney handling the estate must start distributions within a certain period of time or if this could drag on for a long time. My understanding is that it's all in a trust.

[Anonymous]

MYOB. But I think it is one year.

[Anonymous]

Anonymous wrote:MYOB. But I think it is one year.

It is jurisdiction specific, so it might be one year where this PP lives, but there is no uniform requirement around the country. Probate can drag on for years.

[Anonymous]

Well, it's my elderly father so not really a MYOB situation. He has a history of poor financial decisions and doesn't have a financial cushion at all, but will listen to me, usually. I'm debating whether to talk to him about it or just leave it alone ... but it's not just a question of being nosy.

[Anonymous]

Don't myob. I have one of those dads.

You are going to have to support him if he blows through his cushion.

[Anonymous]

Anonymous wrote:Don't myob. I have one of those dads.

You are going to have to support him if he blows through his cushion.

That's my concern. He doesn't have much of one and is starting to spend based on the anticipated inheritance. And ultimately it could be a lot of money -- a million dollars or more -- so that's clouding his judgment.

[Anonymous]

These things can take time. My Dad's estate was large but not terribly complicated, and I didn't do the majority of the distributions until about 6 months after he died, and its still not finalized over a year later. We just finished up last year's taxes, I'm waiting on one more piece from one of his pensions, and fingers crossed it will all be done by the end of the summer.

I'd be concerned for your dad if I were in your shoes. Anything could happen to "muck up the works". Are there other heirs? Potential heirs? Taxes due (those vary state to state - we got slammed by NY estate taxes)? Though I will admit I did some "retail therapy" after my dad died. I probably splurged on maybe $2k worth of clothes and electronics. But my share of the inheritance was just under $1mil, so I didn't spend a huge amount, all things considered. What is the scope of his spending? Small, like a couple of suits, or bigger, like a couple of new cars?

[Anonymous]

personal experience: my grandfather died almost three years ago, and the executors and attorneys are still working out the details. I've been told unofficially to expect something "not insignificant" at some point. But I have no idea when that might be. I'm certainly not counting on it in any way shape, or form.

OP - since this is your father, you need to have a frank talk with him about not spending anything that he is not actually in possession of. Who knows what expenses the estate will have to settle, taxes paid, etc, before he receives what is left of his inheritance. It might not be nearly as much as he thought.

[Anonymous]

MIL died over a year ago and dh is just finishing up her affairs now. OP, be careful about unanticipated taxes. Dh was beneficiary or payable on death (don't remember details) of one of MIL's investments and he had to pay taxes on profit she made off it. When my mom died and I inherited funds from the grandchildren's trust that my grandfather set up to benefit my mom, I had to pay taxes on the profit from stock bought decades ago because the trust was in my and my siblings' names but just controlled by my mom.

Don't remember the exact details, anyway, but I did have to pay out a boatload in taxes. Hopefully your father won't be surprised by that.

[Anonymous]

When my grandfather died, it took five years to settle the estate (there were negotiations with the IRS about the value of land and the amount of estate tax to be paid).

Obviously, it probably wouldn't take five years in your father's case, but he should be aware that it could take this long - or longer - if things get complicated.

[Anonymous]

Thanks all. You've confirmed my fears! I will speak to him.