Reply to What’s the process of inheriting money?

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[quote=Anonymous][quote=Anonymous]Retirement accounts will pass via a transfer on death (TOD).  You should ensure you and your sibling are named.

Checking and Savings can pass via a transfer on death (POD.  You should ensure you and your sibling are named.  If you are joint owners on the account you already have access.

Insurance policies also pass to named beneficiaries.  Check and make sure your name is there.

Cars, furniture, personal possessions usually go thru probate.  The less financial items in probate the better.  You will file probate and that is a process within itself.

Real estate will pass per the will or a transfer of deed if set up.  This is a tax advantage for you since you get a stepped up basis.  If you are already on the deed, you will face taxes.

In the county or city of death, you will need to be sworn in as the executor.  The process varies but you will need the death certificate and the will.  You should research this now to become familiar with the process.  In Virginia the process is state law but administered by each locality.

Death Certs come from the funeral home.  This is step #1.  Then get sworn in as executor.  It could take a month before you are executor.

Even with estates that have a plan and have done all of the right planning steps, being an executor is a lot of work.  You will spend a lot of time on the phone with everyone to get the deceased assets’ moving.  No two processes are the same and everyone requires different paper work etc.  It isn’t complicated, but it takes time and things work in a serial fashion.  Plan on using excel to track everything and good old fashioned file folders.  Lots of paperwork, it is like managing a project.  You also have to deal with all of the emotional parts as well.  Cleaning out a house of possessions can be tough.

You will have to file taxes for the deceased for the year of their death if they had not.  Expect to still be dealing with some items a year after death.  Longer if the estate is complicated.

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Re: last paragraph - I don't think it would be possible for a decendent to have filed their final tax return ; )[/quote]

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