Tag Archives: estate

A unique way to preserve your loved one…

holding_heart-300x214 img_1179-768x1024I came  across a company in Seattle, Washington called Artful Ashes.  They have come up with a unique way to hold the memory of a loved one – a piece of glass art.  All you have to do is send them about a tablespoon full of ashes and they will turn it into art.  Their designs are in the shape of hearts or spheres, measure approximately 3 ½ by 3 ½ inches and weigh about 14 ounces.  The ashes you provide are swirled through the design and can be seen in the finished piece.  If you like, you can include a short inscription on the memorial.

Some people I mentioned this idea to thought it was creepy; others liked it.  Regardless, it’s a beautiful piece of art and something to be considered.  There are many unique ways to preserve the ashes of a loved one.  This is just one more new one.

For more information about cremation and funeral planning, check out our website diesmart.com.

You don’t think you’ve been treated fairly by a deceased relative?

judge-cartoonIf someone in your family has died and you don’t think you’ve been treated fairly, what’s the first thought that comes into your head?  Challenge the will.  But you might want to think a second time before doing this.  A will contest is very hard to win.  It’s difficult to prove that someone was incompetent after they’ve died and it’s equally as tough to prove that undue influence was exerted on the deceased.    Finally, some wills have a clause that will cause you to forfeit your inheritance if you challenge that will.  So it might be best to just accept whatever has been left to you and then to get on with your life.

We found a blog that gave a great example of what might happen if you challenge someone’s will.

Sam and Erica were married. It was Erica’s first marriage and Sam’s second, his first marriage ending in divorce. Sam had one child, Jason, from his first marriage. Erica did not have any children. They each had identical wills, leaving their entire estate to the other, and on the death of the survivor everything goes to Jason.

Their wills also contained a provision, requiring the surviving spouse to live at least six months after the first spouse’s death. If the survivor did not live that long, he or she would be treated as having predeceased the first spouse.

In March of 2015, Sam died. Erica filed a probate proceeding in May and submitted Sam’s will to the court. Because she filed just two months after Sam’s death, Jason objected. He argued that she had no authority to take over Sam’s estate because she had failed to survive him by six months.

Erica apparently became angry, and revoked her own will to make sure that Jason did not receive any share of her estate. Erica signed a new will a few months later (well after she had reached the six-month survivorship requirement). She left her entire estate to her sister and nothing to Jason. She died five months later.

Jason contested her new will, arguing that she had been subjected to undue influence by her sister in preparing her new will. The probate court dismissed his complaint and upheld Erica’s will. Not satisfied, Jason appealed.

The higher court affirmed the probate court finding and stated that it was clear that no one influenced her in her decision to revoke the earlier will or to do her new will. Once she revoked the earlier will, she was intestate — that is, she had no will at all — and since Jason was not her child, he would have no right to any share of her estate if she had died without a will.

Why would that make a difference? Because if she had no will prior to signing the new will, Jason had no standing to even challenge that will. According to the appellate court, there was no question that Erica had revoked her earlier will a few months prior to her executing a new will and thus Jason’s objections were dismissed.

What might Jason have done differently? Hindsight is always 20/20. Perhaps Jason should not have objected to his father’s estate when he did. If Erica had actually died in the four months after he raised his objection, he could probably have still made his legal point. In the meantime, he clearly offended her to the point that she changed her estate plan.”

Moral of the story: Think about what might happen if you challenge someone’s will.  It might be better to accept what’s been left to you than taking a chance that you might end up with nothing.

For more information about estate planning, check out www.diesmart.com
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Was she swindled out of joint property?

moneyologistWe came across a column about a women whose husband asked her to give up the rights to their home…and 10 years later they were divorcing.  The column is from The Moneyologist; it teaches a good lesson and I think you may find it very interesting.  We’re publishing it in its entirety.

Dear Moneyologist,

My husband and I have been married 14 years. We live in California and I am contemplating divorce. I am 62 and he is 65. When we married, he owned a home (with a mortgage) purchased five years prior. A few years into our marriage, when interest rates fell, he refinanced the home. A couple of days before submitting the application, he asked me to sign an inter-spousal transfer of ownership (known as a quitclaim).

The reason: He said I had a student loan which had at one time been in default and we would not be able to receive a good interest rate, or that the loan might be altogether denied. He promised that as soon as the loan was approved, he would follow up by putting me back on title.

A few weeks later, we purchased a second home (cabin). Just a few minutes before going in to finalize the purchase, he asked to sign another quitclaim, citing the same circumstances. The mortgage on the cabin is underwater at this time.

It has been 14 years since this happened, and he refuses to add me to the title. He finally admitted that he indeed had an ulterior motive, as he witnessed a friend who underwent a divorce and lost a house to his former spouse and that he was not going to be “taken advantage of” if we divorced.

What are my options? I feel that I was deceived and that this constitutes fraud. About 90% of his investments were made before we were married, and I am also aware that he has made no provisions for me in his will nor named me as a beneficiary to his life insurance.

Beverly in California

Dear Beverly,

The investments he had prior to your marriage belong to your husband and he is free to name anyone from the next-door neighbor to the window cleaner on his life insurance. Now, the good news:

California — in addition to Arizona, Idaho, Louisiana, Texas, Nevada, New Mexico and Washington — treat all marital assets as community property. That means that assets acquired during the marriage are divided equally between the two spouses. “Notwithstanding an agreement otherwise, upon the death of a married person, one-half of the community property belongs to the surviving spouse and the other half belongs to the decedent,” according to California Probate Code Section 100(a). Why is that important to you? Because the refinancing of this home and the purchase of the cabin were made during your marriage, so it’s irrelevant whether your husband had you sign a quitclaim or not.

Well, not quite. A judge could look unfavorably on your husband’s behavior and your testimony (if you don’t have it in an email) that your husband did this because he wanted to prevent you from even owning the property you both bought during your marriage. There is a precedent for this: In 1996, a California woman won $1.3 million in the lottery and filed for divorce 11 days later without even telling her husband or anyone else about her windfall. A couple of years later her husband discovered her deception and sued. Superior Court Judge Richard Denner ruled that she acted out of fraud or malice and awarded her husband all of her winnings. A judge could, in theory, take a similar view and punish your husband.

Your husband’s shady behavior could end up doing him more harm than good in any divorce settlement. There are a lot of good, honest people out there waiting for you post-divorce.

Check out our website, www.diesmart.com for more information.

Credit card debt after death – what you need to know

k15365456It’s often incredibly difficult to cope with the death of a loved one.  A creditor knocking on your door makes it even more difficult.

Can a creditor collect a credit card debt owed by your deceased parent or spouse?

There is not one simple answer to this important question.  There are many factors to be considered.  Here are 10 questions and answers to help you understand what may happen.

  1.  Are family, friends or heirs responsible for your debts?
    When you take out a credit card in your name, you’re agreeing to repay whatever you borrow.  That obligation usually doesn’t extend to anyone else.  The only exception is if you had a joint account holder.  That person would be responsible for all debt incurred through use of that credit card, even if the debt was not run up by  that joint account holder.
  2. Direct creditors to the executor.
    When you die, your obligations will transfer from you to your estate.  The executor of your estate will be responsible for handling all of your estate’s financial issues, including your debts.  If a family member gets a call about a debt and isn’t the executor, he or she should direct the caller to the executor and tell that person not to call again.
  1. Notify creditors and the credit bureaus.
    The executor should notify any known creditors as soon as possible about the death.  They should also notify the three main credit reporting agencies – Experian, Equifax and TransUnion – and request that the accounts should be flagged “Deceased: Do not issue credit”.  This will help prevent a very common problem – identity theft of the deceased.

The executor should also request a copy of the deceased’s credit report.  This will help him to identify any outstanding debts.

  1. Find out who’s responsible.
    As previously mentioned, people who request credit together are equally responsible for the total debt.  The same is true with a co-signer of a loan, who by cosigning is guaranteeing the debt of the borrower.

    Authorized signers on credit card accounts, however, aren’t liable.  They didn’t originally apply for the credit; they were just allowed to ”piggyback” on the account of the person who did.

  2. Stop using credit card accounts.
    If you’re an authorized user on a credit card account, you shouldn’t use the card after the main cardholder dies.  Because you’re not liable for the debt, this could be considered fraud.

    A surviving spouse can request a card in his or her own name.  However, it will most likely be a new card application, based on the survivor’s credit history, income, etc.

  3. Don’t split up all of the belongings yet.
    Nothing should be distributed until after the estate has settled its debts.  If there’s not enough money in the estate to pay those debts and belonging have been distributed, the heirs could become responsible for those debts.
  1. Ask creditors for help.
    If a surviving spouse is a joint account holder and is having trouble paying the bills, he or she may be able to work something out with the creditors.  He or she may be given time to get organized or to come up with the needed money.
  1. Community property states are different.
    If you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin and, if you choose it, Alaska) one spouse can be liable for the debts of the other, even if they didn’t agree to them or even know about them.  In these states, the surviving spouse will most likely be responsible for any credit card debts.
  2. If an estate can’t pay, the lenders lose.
    If the estate has more debts than assets to pay them, creditors may be forced to write off those debts.
  3. When in doubt, contact an attorney.
    Figuring out what to do about estate debts can be complicated so you might want to contact a probate attorney for help.

    For more information about identity theft of the deceased or how to settle an estate, check out our website, www.diesmart.com
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When is online estate planning a good idea?

k8758525First of all, what is estate planning?  It’s the process people follow to protect their estate and their family in case of their incapacitation or death.  It includes such things as writing a will, naming a guardian for an surviving minors in the family, creating trust accounts, naming an executor for the estate and setting up a durable power of attorney.

Traditional estate planning can be quite expensive and many people can’t afford it so they are turning to an online option – the virtual legal service.  For example, a traditionally written will can cost between $500 and $1,000 to prepare.  An online version can be done for an average of $60, a much more affordable choice.

Here are three questions to ask yourself before you decide whether the online option is a good choice for you.

  1.  Do I have a simple situation?
    If you don’t have any minor children and your estate is relatively small, you probably could use an online service such as Rocket Lawyer.
  2. How big is my estate?
    If you have assets and insurance in excess of the current estate tax exemption ($5.45 million per individual in 2016) the online option probably is not for you.  You would do better to work with an estate planning professional who will help you evaluate the ways you can leave money to your beneficiaries while minimizing estate taxes.  This could include setting up a trust that would minimize taxes and avoid probate.
  3. Do I need expert legal advice?
    Even with a small estate, you may have special circumstances that require expert legal advice.  For example, if you are part of a blended family, own property outside of your state or have a disabled family member, online planning may not be for you.  You may need to speak with an attorney to discuss your specific needs and to work with that expert to create a plan that meets your needs.Although online estate planning is a good choice for many, make sure you consider your current situation, the size of your estate and your other circumstances.  Then decide whether hiring an estate planning attorney is the best option for you or whether you can comfortably go the online route.

For more information about estate planning, check out our website www.diesmart.com.