If your parent recently died (estate planning)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Do a transfer on death deed for real estate and name beneficiaries in your investment accounts. Compile a list of all accounts, credit cards, insurance provider, etc. If you have any assets more exotic than a home and investment accounts, you may need a lawyer.

For power of attorney - get several copies with your original signature notarized. Having the original *in ink* is important for your children. Trust.

If I do that, name beneficiaries and do a transfer on death deed, what is the procedure for the beneficiaries to get the funds? Is it as simple as providing a death certificate to the bank? Or even that not required as bank monitors death rolls itself? Would that be simpler than going through the trust which would require renaming it as beneficiary as additional step?

What is procedure for getting the real estate transfer through the death deed?

What is the advantage of having a trust in this situation if taxes are not an issue?
Limiting a big lump sum payment to relatively young beneficiaries to make sure it is not squandered? Protecting funds from future spouses? Anything else?

Generally yes provide the death certificate and your ID, etc. It's a pretty simple process.

For the deed, you do the same with the registrar of deeds.

What about cars? How do I transfer those without involving courts

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Do a transfer on death deed for real estate and name beneficiaries in your investment accounts. Compile a list of all accounts, credit cards, insurance provider, etc. If you have any assets more exotic than a home and investment accounts, you may need a lawyer.

For power of attorney - get several copies with your original signature notarized. Having the original *in ink* is important for your children. Trust.

If I do that, name beneficiaries and do a transfer on death deed, what is the procedure for the beneficiaries to get the funds? Is it as simple as providing a death certificate to the bank? Or even that not required as bank monitors death rolls itself? Would that be simpler than going through the trust which would require renaming it as beneficiary as additional step?

What is procedure for getting the real estate transfer through the death deed?

What is the advantage of having a trust in this situation if taxes are not an issue?
Limiting a big lump sum payment to relatively young beneficiaries to make sure it is not squandered? Protecting funds from future spouses? Anything else?

Generally yes provide the death certificate and your ID, etc. It's a pretty simple process.

For the deed, you do the same with the registrar of deeds.

What about cars? How do I transfer those without involving courts

Designate a beneficiary on the car title with the DMV.

https://mva.maryland.gov/about-mva/Pages/info/27300/27300-78T.aspx

[Anonymous]

Anonymous wrote:If you have recently dealt with the death of a parent, what advice do you have for other parents setting up estate plans and wills for their adult children? DH and I are getting this process started now (our kids are adults) and we're trying to figure out if we need a full estate plan with an actual lawyer (which seems very expensive), or if we can just fill out the online POA/wills forms that are available through reputable online services. I don't really understand what the lawyer does. If we fill out those forms and then leave bank account/investment account information for our kids in a folder, and name them as beneficiaries, and then create a will for distribution of tangible assets like real estate, doesn't that take care of everything? Why do we need an estate lawyer involved? Thanks

Not a lawyer. We went through something like this for a close relative who died young without a will/trust and helped the spouse through the financial/inheritance issues.

1. Create that set of documents - Revocable Trust, HCPOA, Pour Over Will, etc.
2. Fund the Trust. Title your financial assets in the name of the Trust.
3. Some jurisdictions allow you to transfer title of your property to a Trust. Check.
4. All financial accounts should have a named beneficiary. 401K and other tax deferred accounts that should be the people you want to give that money to (not the trust).

A trust is essentially a legal entity where you are both the grantor and trustee. You get to dictate who your successor trustee would be, as well as one of more backups, and how the assets should be divided. You don't need a lawyer to do this as long as the inheritors are non-combative. If the situation is complex - kids that don't get along, second marriage, estate in the multiple millions, across states or countries, etc. - you should absolutely get a good lawyer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lawyer is familiar with federal and state tax law pertaining to inheritance and can help plan the estate to avoid losing 40% in taxes. A lawyer can also help put things in a trust in order to avoid probate.

What percentage of families do you think are subject to estate taxes? Brookings estimated it was 4000 people in 2023 FOR THE ENTIRE COUNTRY.

https://taxpolicycenter.org/briefing-book/how-many-people-pay-estate-tax

That's federal, yeah in some states you might get hit if you have less than $15 million, but the only state in the region with an estate tax is Maryland and that only starts at $5 million, and the marginal rates start at 0.8%.

The vast, vast majority of people do not have to worry about estate taxes.

DC and Pennsylvania have estate taxes.

Absolutely right, I looked at a bad map that didn't properly call out DC. And it only kicks in over $5 million. That I should have such problems.

You might not, but most people I know who live in DC run into problems because $5 million is very low for an entire estate.

What a world to live in that MOST people you know have $5 million+ estates.

In my world people have paid off homes worth 1.5-3 million so all our total estates exceed 5 million. Once you’ve 60 in this area, continuously employed for 35 years it’s not crazy. But we and our friends are all financially conservative generally

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you have recently dealt with the death of a parent, what advice do you have for other parents setting up estate plans and wills for their adult children? DH and I are getting this process started now (our kids are adults) and we're trying to figure out if we need a full estate plan with an actual lawyer (which seems very expensive), or if we can just fill out the online POA/wills forms that are available through reputable online services. I don't really understand what the lawyer does. If we fill out those forms and then leave bank account/investment account information for our kids in a folder, and name them as beneficiaries, and then create a will for distribution of tangible assets like real estate, doesn't that take care of everything? Why do we need an estate lawyer involved? Thanks

Not a lawyer. We went through something like this for a close relative who died young without a will/trust and helped the spouse through the financial/inheritance issues.

1. Create that set of documents - Revocable Trust, HCPOA, Pour Over Will, etc.
2. Fund the Trust. Title your financial assets in the name of the Trust.
3. Some jurisdictions allow you to transfer title of your property to a Trust. Check.
4. All financial accounts should have a named beneficiary. 401K and other tax deferred accounts that should be the people you want to give that money to (not the trust).

A trust is essentially a legal entity where you are both the grantor and trustee. You get to dictate who your successor trustee would be, as well as one of more backups, and how the assets should be divided. You don't need a lawyer to do this as long as the inheritors are non-combative. If the situation is complex - kids that don't get along, second marriage, estate in the multiple millions, across states or countries, etc. - you should absolutely get a good lawyer.

Why not name trust as beneficiary for 401k?

[Anonymous]

NP here, 401Ks have rules for beneficiaries to withdraw funds over a set time period unless they’re minors. I don’t think it can go through a trust for this reason.

[Anonymous]

We had a medical POA, durable POA, wills and a pourover trust set up when our older child was 10 days old. We're both lawyers. We believe in being fully prepared. Why go cheap on something like this?

[Anonymous]

Anonymous wrote:My dad passed away last year, and he had a pour-over will along with a complex trust. The situation was further complicated by his remarriage after the trust was established and his lack of a prenuptial agreement. He and his wife never lived together, as she resided several states away, and they were only married for three years when he died. His will did not list her as a beneficiary.

Although not named in the will, his wife was legally entitled to one-third of his estate due to the lack of a prenuptial agreement. However, she needed to make an elective share claim to receive this portion. Fortunately, she missed the nine-month deadline to file, for reasons that remain unclear.

While I don’t offer specific advice on setting up a will, I would strongly discourage second marriages if you and your wife ever divorce or one of you passes. Definitely don't remarry without a prenup. My parents were married for 50 years until my mom passed away ten years ago. My dad took a significant gamble that could have screwed my sibling and me.

Protect the children from your first marriage at all costs is my only advice. My mom probably turned in her grave this last year from all the things she built with my dad being inches away from going to another woman and her children.

Unless the father wants the second wife to inherit everything and screw his children, like my dad did purposefully.

[Anonymous]

Anonymous wrote:If you have recently dealt with the death of a parent, what advice do you have for other parents setting up estate plans and wills for their adult children? DH and I are getting this process started now (our kids are adults) and we're trying to figure out if we need a full estate plan with an actual lawyer (which seems very expensive), or if we can just fill out the online POA/wills forms that are available through reputable online services. I don't really understand what the lawyer does. If we fill out those forms and then leave bank account/investment account information for our kids in a folder, and name them as beneficiaries, and then create a will for distribution of tangible assets like real estate, doesn't that take care of everything? Why do we need an estate lawyer involved? Thanks

Do transfer or payable on death deeds, update all beneficiary paperwork and put the rest in a trust. Wills have to go through probate, are public, and give things outright, which is usually not desirable. Trusts can be used to protect assets and set conditions for distributions, and does not go through probate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you have recently dealt with the death of a parent, what advice do you have for other parents setting up estate plans and wills for their adult children? DH and I are getting this process started now (our kids are adults) and we're trying to figure out if we need a full estate plan with an actual lawyer (which seems very expensive), or if we can just fill out the online POA/wills forms that are available through reputable online services. I don't really understand what the lawyer does. If we fill out those forms and then leave bank account/investment account information for our kids in a folder, and name them as beneficiaries, and then create a will for distribution of tangible assets like real estate, doesn't that take care of everything? Why do we need an estate lawyer involved? Thanks

Not a lawyer. We went through something like this for a close relative who died young without a will/trust and helped the spouse through the financial/inheritance issues.

1. Create that set of documents - Revocable Trust, HCPOA, Pour Over Will, etc.
2. Fund the Trust. Title your financial assets in the name of the Trust.
3. Some jurisdictions allow you to transfer title of your property to a Trust. Check.
4. All financial accounts should have a named beneficiary. 401K and other tax deferred accounts that should be the people you want to give that money to (not the trust).

A trust is essentially a legal entity where you are both the grantor and trustee. You get to dictate who your successor trustee would be, as well as one of more backups, and how the assets should be divided. You don't need a lawyer to do this as long as the inheritors are non-combative. If the situation is complex - kids that don't get along, second marriage, estate in the multiple millions, across states or countries, etc. - you should absolutely get a good lawyer.

Why not name trust as beneficiary for 401k?

Because only qualified beneficiaries are entitled to the "stretch" of distributions. If it goes to the trust, you'll be subject to mandatory disbursements much sooner and that can have tax implications.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My dad passed away last year, and he had a pour-over will along with a complex trust. The situation was further complicated by his remarriage after the trust was established and his lack of a prenuptial agreement. He and his wife never lived together, as she resided several states away, and they were only married for three years when he died. His will did not list her as a beneficiary.

Although not named in the will, his wife was legally entitled to one-third of his estate due to the lack of a prenuptial agreement. However, she needed to make an elective share claim to receive this portion. Fortunately, she missed the nine-month deadline to file, for reasons that remain unclear.

While I don’t offer specific advice on setting up a will, I would strongly discourage second marriages if you and your wife ever divorce or one of you passes. Definitely don't remarry without a prenup. My parents were married for 50 years until my mom passed away ten years ago. My dad took a significant gamble that could have screwed my sibling and me.

Protect the children from your first marriage at all costs is my only advice. My mom probably turned in her grave this last year from all the things she built with my dad being inches away from going to another woman and her children.

You can add in a trust that a pre-nup is required. Or deceased spouse’s portion will be distributed to beneficiaries.

Depends on the jurisdiction whether you can require a pre-nup prior to distribution.
Without some sort of pre-post nup, though, the spouse's elective share is mandatory, regardless of what is in the will/trust.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My dad passed away last year, and he had a pour-over will along with a complex trust. The situation was further complicated by his remarriage after the trust was established and his lack of a prenuptial agreement. He and his wife never lived together, as she resided several states away, and they were only married for three years when he died. His will did not list her as a beneficiary.

Although not named in the will, his wife was legally entitled to one-third of his estate due to the lack of a prenuptial agreement. However, she needed to make an elective share claim to receive this portion. Fortunately, she missed the nine-month deadline to file, for reasons that remain unclear.

While I don’t offer specific advice on setting up a will, I would strongly discourage second marriages if you and your wife ever divorce or one of you passes. Definitely don't remarry without a prenup. My parents were married for 50 years until my mom passed away ten years ago. My dad took a significant gamble that could have screwed my sibling and me.

Protect the children from your first marriage at all costs is my only advice. My mom probably turned in her grave this last year from all the things she built with my dad being inches away from going to another woman and her children.

You can add in a trust that a pre-nup is required. Or deceased spouse’s portion will be distributed to beneficiaries.

Depends on the jurisdiction whether you can require a pre-nup prior to distribution.
Without some sort of pre-post nup, though, the spouse's elective share is mandatory, regardless of what is in the will/trust.

The way you worded this is inaccurate. The elective share is only mandatory if it’s elected. If the spouse fails to claim it and the deadline passes, they won’t receive anything. Your wording makes it sound automatic when it’s not.

[Anonymous]

For the love all things holy, decide what you want done with real estate and make it clear. Several family issues (all different groupings) all wrapped around RE and made relationships dissolve/diminish:

1. Family land of 30+ acres were kids grew up - no clear direction on what to do with it and 5 kids had 5 different ideas. No one is talking to each other now.

2. Family beach house - no clear direction on what to do with it and in a state of dis-repair. Executor (related but not direct family member) made the call to sell and pissed the entire extended family off.

3. Family land in the mid-west. Instructions to "try to sell". No market for it and squabbling ensued.

4. Finally - and best case - family home on the market when old age/lack of being able to care for the home became apparent. Funds in bank account that provided money to live on, once person died it was easy enough to divide cash remaining.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My dad passed away last year, and he had a pour-over will along with a complex trust. The situation was further complicated by his remarriage after the trust was established and his lack of a prenuptial agreement. He and his wife never lived together, as she resided several states away, and they were only married for three years when he died. His will did not list her as a beneficiary.

Although not named in the will, his wife was legally entitled to one-third of his estate due to the lack of a prenuptial agreement. However, she needed to make an elective share claim to receive this portion. Fortunately, she missed the nine-month deadline to file, for reasons that remain unclear.

While I don’t offer specific advice on setting up a will, I would strongly discourage second marriages if you and your wife ever divorce or one of you passes. Definitely don't remarry without a prenup. My parents were married for 50 years until my mom passed away ten years ago. My dad took a significant gamble that could have screwed my sibling and me.

Protect the children from your first marriage at all costs is my only advice. My mom probably turned in her grave this last year from all the things she built with my dad being inches away from going to another woman and her children.

You can add in a trust that a pre-nup is required. Or deceased spouse’s portion will be distributed to beneficiaries.

Depends on the jurisdiction whether you can require a pre-nup prior to distribution.
Without some sort of pre-post nup, though, the spouse's elective share is mandatory, regardless of what is in the will/trust.

The way you worded this is inaccurate. The elective share is only mandatory if it’s elected. If the spouse fails to claim it and the deadline passes, they won’t receive anything. Your wording makes it sound automatic when it’s not.

It's automatic in some jurisidctions, I believe.