Estate Question

Troy Loney
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Estate Question

Postby Troy Loney » Wed Jun 08, 2016 2:26 pm

My wife's mother just passed away. She was divorced so the estate is being split between my wife and her four sisters. My Sister-In-Law just told my wife to talk to an accountant about the IRA. Does anyone know how that is liquidated? Does the retirement account get split the four ways, or is it liquidated in order to split? And is this something you want to talk to a lawyer or an accountant about?

columbia
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Estate Question

Postby columbia » Wed Jun 08, 2016 2:27 pm

My wife's mother just passed away. She was divorced so the estate is being split between my wife and her four sisters. My Sister-In-Law just told my wife to talk to an accountant about the IRA. Does anyone know how that is liquidated? Does the retirement account get split the four ways, or is it liquidated in order to split? And is this something you want to talk to a lawyer or an accountant about?
https://www.bogleheads.org/wiki/Inheriting_an_IRA

slappybrown
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Estate Question

Postby slappybrown » Wed Jun 08, 2016 2:28 pm

Did she designate benes to the IRA account? Who is the executor or PR or whatever the appropriate term is for the state she resided in? You're going to have to liquidate the securities in the IRA to distribute to the appropriate benes and/or estate.

Depending on the answers, you should consider talking to a lawyer or accountant. Hopefully you don't need to.

columbia
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Estate Question

Postby columbia » Wed Jun 08, 2016 2:29 pm

The key thing is that the custodian/receiver of the IRA (aka a mutual fund company) needs to make sure that it is kept separate from any personal IRA she has. At that point, it's subject to the applicable required minimum distributions until it is gone.

Troy Loney
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Estate Question

Postby Troy Loney » Wed Jun 08, 2016 2:39 pm

Did she designate benes to the IRA account? Who is the executor or PR or whatever the appropriate term is for the state she resided in? You're going to have to liquidate the securities in the IRA to distribute to the appropriate benes and/or estate.

Depending on the answers, you should consider talking to a lawyer or accountant. Hopefully you don't need to.
In PA. I'm assuming she designated the oldest daughter because she's been "in charge" of it. But now my wife is freaking out because her sister just told her that there was $30K in CC debt. My wife is definitely financially illiterate and doesn't really grasp the difference between that liquid debt and the substantial amount her mom had in the IRA.

I don't know the steps, but when there's that much CC debt I assume that the the account will get liquidated and then pay that off prior to distribution.

slappybrown
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Estate Question

Postby slappybrown » Wed Jun 08, 2016 2:40 pm

Did she designate benes to the IRA account? Who is the executor or PR or whatever the appropriate term is for the state she resided in? You're going to have to liquidate the securities in the IRA to distribute to the appropriate benes and/or estate.

Depending on the answers, you should consider talking to a lawyer or accountant. Hopefully you don't need to.
In PA. I'm assuming she designated the oldest daughter because she's been "in charge" of it. But now my wife is freaking out because her sister just told her that there was $30K in CC debt. My wife is definitely financially illiterate and doesn't really grasp the difference between that liquid debt and the substantial amount her mom had in the IRA.

I don't know the steps, but when there's that much CC debt I assume that the the account will get liquidated and then pay that off prior to distribution.
I don't know that I would make that assumption about the bene. Did she have a will? Is there an executor/personal rep?

The 30K in CC debt isn't going to go to your wife.

Troy Loney
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Estate Question

Postby Troy Loney » Wed Jun 08, 2016 2:46 pm

I don't know that I would make that assumption about the bene. Did she have a will? Is there an executor/personal rep?
We are a little on the dark on that info. But I am going to reach out to my Brother in Law soon to get that info. Ok, so based on the limited amount of info we have at this point, what other questions should I be asking?

tifosi77
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Estate Question

Postby tifosi77 » Wed Jun 08, 2016 2:48 pm

Make sure no one who may have been an authorized user of the credit card(s) continues using it/them.

Troy Loney
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Estate Question

Postby Troy Loney » Wed Jun 08, 2016 2:53 pm

Make sure no one who may have been an authorized user of the credit card(s) continues using it/them.
Yeah, all that junk was cancelled the day after.

MrKennethTKangaroo
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Estate Question

Postby MrKennethTKangaroo » Wed Jun 08, 2016 3:12 pm


The 30K in CC debt isn't going to go to your wife.
Could be wrong, but that CC debt won't necessarily have to be paid off using the IRA, either, correct?

BigMck
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Estate Question

Postby BigMck » Wed Jun 08, 2016 3:49 pm

My wife just went through this with her mother's passing. She immediately contacted our accountant and he advised to set up a trust in her mother's name, with my wife being the sole executor of the trust. She left behind medical debt, a mortgage, investment portfolios ...

The debts will not be paid, (no obligation from the trust), the mortgage is being paid, and the investments can be paid to whomever the executor wishes. CA laws.

Troy Loney
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Estate Question

Postby Troy Loney » Wed Jun 08, 2016 4:08 pm


The 30K in CC debt isn't going to go to your wife.
Could be wrong, but that CC debt won't necessarily have to be paid off using the IRA, either, correct?
Got some follow up info. I think the lesson learned for me is that I need to try and coach people how to talk to my wife. I think her sister was griping about how their mom had all that CC debt, I think all my wife heard was $30K Debt, and panicked. And you're right, basically all her liquid assets will be wiped out by the funeral and that debt, so it will be a "bankrupt estate" or something, all the IRA's remain intact.

Shyster
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Estate Question

Postby Shyster » Wed Jun 08, 2016 5:10 pm

Could be wrong, but that CC debt won't necessarily have to be paid off using the IRA, either, correct?
Depends on whether one or more beneficiaries were set. For accounts like IRAs and 401(k)s where one can name a beneficiary, the account transfers over to the beneficiary automatically upon the death of the owner. For example, I have my brother named as the beneficiary on my 401(k). If I were to be squashed by a bus tomorrow, that 401(k) automatically belongs to my brother upon my death. It's not part of my estate for inheritance purposes.

If a beneficiary is not set, however, then accounts like IRAs and 401(k)s typically pay their contents out to the decedent's estate, and from that point the money would pass either according to the decedent's will (if there is one) or by the rules of intestacy (if there isn't). In that case, the money would be exposed to claims from the decedent's creditors, and those claims get paid before there are any distributions to heirs.

Beveridge
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Estate Question

Postby Beveridge » Tue Oct 04, 2016 3:55 pm

Do any of our resident lawyers handle estate filings when it comes to the deceased being a cosigner on student loan? I'm not going to bombard you with countless questions, but I have a few general questions I want to throw your way. Mainly to see if the lawyer is on point with what he's saying.

Shyster
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Estate Question

Postby Shyster » Tue Oct 04, 2016 4:11 pm

Not me, sorry.

dodint
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Estate Question

Postby dodint » Tue Oct 04, 2016 4:20 pm

I am prepared to give you vague answers about vague hypotheticals regarding various personal injury scenarios. Beyond that I'm completely **** useless.

dodint
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Estate Question

Postby dodint » Wed Feb 14, 2018 12:17 pm

I haven to research this, well, soon but I thought I'd toss it out here to see if I can see the wavetops at least.

Decedent leaves a house to two siblings. One wants to keep the house for nostalgic reasons, the other is a money grubbing piece of ****.

I assume the one that wants to keep it has to buy the other out of their share. How do they determine the value? Market analysis? Appraisal? Or is it actual value of the property?

My assumption is the estate would hire an appraiser and then the heir that wants to keep the house would have to pay the other 50% of that value. That's not fair for a couple of reasons but might be the path of least resistance.

Any ideas?

meow
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Estate Question

Postby meow » Wed Feb 14, 2018 12:22 pm

Why is that not fair?

MrKennethTKangaroo
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Estate Question

Postby MrKennethTKangaroo » Wed Feb 14, 2018 12:26 pm

Yes I am also curious to know how it is not fair. of course, this is dodint we are talking about so we have to take it with a grain of salt.

also, in order to prepare the inheritance tax return, you have to obtain the value of the property. that might be a good starting point in determining the value. I've only ever seen inheritance returns, but never prepared an inheritance tax return. for an inheritance return, you might be able to base it off the county's assessed value but I am not sure.

dodint
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Estate Question

Postby dodint » Wed Feb 14, 2018 12:29 pm

The only reason to ask for current market value would be to drive the price up as high as possible. Forcing a sibling to buy a house at the peak of its value when the intent of the parent was for it to be a gift. In my opinion it should be settled on the value of the land plus replacement value of the structures.

The parent is an idiot and has created this easily avoidable situation though.

I acknowledged the path of least resistance is market value. And I'm obviously letting my personal feelings bleed through here*. I don't think what I'm saying is wrong, though.

*My BIL has been avoiding my MIL/FIL almost the entire time I've known my wife but now that she's sick beyond hope he's shown up with his hand out. The fight is going to be ugly and I'm really, really dreading it.

MrKennethTKangaroo
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Estate Question

Postby MrKennethTKangaroo » Wed Feb 14, 2018 12:33 pm

value of the land plus replacement structures?

grunthy
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Estate Question

Postby grunthy » Wed Feb 14, 2018 12:33 pm

How dare the parent die and leave their kids their house. The nerve.

dodint
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Estate Question

Postby dodint » Wed Feb 14, 2018 12:33 pm

I can't believe how big of a moron you are but every day you top yourself. Amazing.

grunthy
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Estate Question

Postby grunthy » Wed Feb 14, 2018 12:38 pm

I thought you foed me? Why am I a moron? I’m not the one that called the parents an idiot for leaving something to their kids.
Last edited by grunthy on Wed Feb 14, 2018 12:38 pm, edited 1 time in total.

dodint
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Estate Question

Postby dodint » Wed Feb 14, 2018 12:38 pm

value of the land plus replacement structures?
The land has value, it borders Twin Lakes park and is a pretty healthy patch of earth. The house itself is not fit even as a rental, it doesn't even have a shower. It's going to be at the bottom of the scale when put up against a market analysis for that area because it will be lesser than any of the comps by a fair margin. They haven't put any money into it for 30 years.

My complete lack of faith in appraisers probably plays a part in this. Every one I've ever ordered has come within $500 of the number the bank needed; I'm not convinced they actually do anything of tangible value. I think mac might be the only one I've heard of that got a value way off of what he expected.

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