Estate Planning

[msomnipotent]

I turned 40 last month and the idea of a will has been nagging at me. My grandmother knew she was dying of lung cancer, so she had everything in order before she passed on. It still took 8 months and a lot of frustration for my mother, her executor. There is paperwork for everything and not everyone knows what they are doing. One of her banks was especially screwy.

I just do not have a good option for a caretaker for my daughter. My husband and I have talked about this a lot and we just don't know who to choose. We have also come to realize that we are the only sane people in both of our families, and my sisters' kids will wind up with us if something happens to them.

[ladyhk13]

My dad called me up one day and said "congratulations, you now own a home" and I thought he was nuts. He put his house in my name and in his documents he stated that his wife (step mother) will be allowed to live the rest of her life in the home as long as the taxes are paid. He did this so that if she ever gets sick the home cannot be used as an asset for Medicare nor can it be taken away from her due to medical bills. It covered her butt so she never has to worry about a place to live. If she ever wanted to move of course I would sign the house over to her (I don't think she ever will though, they have lived there 30 years and the house is supposed to be sold and split between the grandkids - he died last year) so she could do what she wanted, it would be the right thing to do.

[izzyscout21]

I had a will while I was on active duty. That has since lapsed, and I've been reluctant to have anew one drawn up. The issue for me and the Mrs. is exactly what Stig mentioned: Don't know who to entrust the rugrats to.

[ladyhk13]

I had a will while I was on active duty. That has since lapsed, and I've been reluctant to have anew one drawn up. The issue for me and the Mrs. is exactly what Stig mentioned: Don't know who to entrust the rugrats to.

That is always a really tough one. I guess the Catholics have that one figured out when they assign Godparents - not always a family member. Who would raise the kids the way you would want them raised (your values, unconditional love, respect, financial responsibility, ect) and such. I'm just glad I don't have to worry about that anymore.

[ladyhk13]

Great news on the tax issue. I knew that was coming up. But I hadn't heard it had passed already.

Yeah, I got an email from David Alexander (My Congressman and friend) letting us know it was passed effective 2012.

[Katrina]

Guys just an fyi, I had to pay taxes on what I "inherited" from Pop's estate. Pop put it all in trust and when the trust distributes, that's income not inheritance to the heirs so check your fed and state tax rules. Maybe no inheritance taxes for the trust but you WILL get hit with income taxes. This is from the tax lawyer we consulted when we got the 1099 for the first distribution of the Trust. And make sure your trustee takes their fees in the same year as they do any distribution(s) because you can take that off the taxes and the costs of maintaining any property to offset the taxes charged . That is also what the lawyer told us. Since the trustee for Pop won't take her costs till the estate is settled we couldn't take her fees/costs on last years taxes. She bumped us into a much higher tax bracket, cost me a bunch of money and I didn't get any offsets. It's legal just not too ethical.

[ladyhk13]

^that stinks! Guess Trusts aren't always a good thing. Is that a state law or federal, do you know?

[Katrina]

Not exactly sure if it is the same in all states but Federal is IRS rules. Which I believe is what states mirror.

[Sniper-T]

Liquid assets are what is easiest to transfer to your heirs. After a nightmare of a time being executor for my mom's estate, I got my dad to sort his out while he was still alive. On hand Cash, coin, and possessions could all be transfered to the heirs (me and my brother) easily, and with no tax issues for us. What he had in the bank, and money from the sale of his house, were all taxable income for us.

Keep in mind, this is under Canadian Law, and may vary down there.

[tompnoid]

everything is to be split between my sons the three will inherit the 401k life insurance whole nine yards. the insurance tried to make me get my ex wife to sign a waiver for my 401 k told em to beat it and listed my kids as the sole beneficiaries. as far as the rest goes whatever i dont care my sons get the guns and fishign gear my brother gets the boat and wife is left with the house