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Re: help with estate planning
Old 12-18-2004, 07:46 PM   #21
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Re: help with estate planning

I don't have any advice, but I am curious . . . If the sibling who currently benefits from the real estate is forced to find the money to buy you out or begin to pay a new landlord, how will that effect him? Will he loose his business? his home? suffer a significant loss of lifestyle? . . .

If it were me, those questions would be more important than asking what is fair. I haven't planned my retirement with any inheritance in mind and in the case of my father's death I would be more concerned about my brother's comfort and security than about getting my share.
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Re: help with estate planning
Old 12-19-2004, 02:49 AM   #22
 
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Re: help with estate planning

Hello salaryguru! Now, that is a nice thought and puts
a little different spin on the problem. Like you, I am
not doing any planning which includes inheriting
anything, although that would be nice. Re. your brother's "comfort and security", I wish I felt
that way about my brother. I did once.
Anyway, "fairness" is pretty hard to beat for an outcome
IMHO. Actually achieving it is frequently elusive though.

JG
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Re: help with estate planning
Old 12-19-2004, 01:28 PM   #23
 
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Re: help with estate planning

How about this solution?:

Siblings agree to continue present rental agreement with Mom for another 10-12 years (until we are all in or near retirement), even if she dies before then. If Mom dies before then, agree that rental terms can be changed to something more realistic for the market, but still keep it reasonable for the sibling until year 10-12.

At 10-12 years, agree to sell the building to sibling, or if not interested or able, to highest bidder.

This will give the sibling a goal and plenty of time to save money for a buy-out, or to plan on a move to a new rental space. And it gives the other 4 siblings a timeline on which to plan their own futures. It also provides this whole sticky situation with closure at a definite time.

Do you think these decisions need to be unanimous (5/5), or majority (4/5)? Reason I ask is that sibling in question could stall everything and lock up the building equity forever if unanimous is needed, just to get what he wants. I hope that's not how he thinks or acts, but it could happen, I suppose.

QT
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Re: help with estate planning
Old 12-19-2004, 08:33 PM   #24
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Re: help with estate planning

John- I think we think similarly about estate planning, and an on occasion I get a little mouthly. Hubby and I had an attorney prepare our wills, living trust, medical POAs, and health care directives. Full meal deal. This is not a do-it-youself process as a mistake can complicate the life of our families as they try to deal with our health care needs or passing.

Most of all I want to ease out of this life with a wave and salute, and have whatever is left expended as I direct (and not to the folks who prepared the paperwork).

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Re: help with estate planning
Old 12-20-2004, 05:52 AM   #25
 
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Re: help with estate planning

I agree BRAT, but I don't think I can afford the
"full meal deal". In fact, even now that I am into
having a professional firm this up, in the back of my mind I am still thinking "I could blow this off and let my
heirs spend down what's left to straighten it out."
As it is now, the cost of it is coming out of our day to day
expense money.

JG
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Re: help with estate planning
Old 12-21-2004, 10:54 AM   #26
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Re: help with estate planning

Most states have model health care directives online that comply with their laws. I don't live in CA, but here is a resource for that state: http://www.pamf.org/preventive/ahcd.html

I doubt that the Medical POA or the advance directive for health care run up their fees.

We told our attorney that we wanted a fixed price, but then our situation isn't complex (no x's, no dependent children, no business). The attorney knew that we do very good prep work (copy of the ownership and survivor instructions for life insurance policies, IRAs, home title). We also knew that we wanted a living trust and coordinating wills. We also wanted flexability so that if the tax laws change choices could be made. That helped him construct the documents quickly.

Giving the attorney the information in advance for review helps keep costs down.
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Re: help with estate planning
Old 12-21-2004, 12:57 PM   #27
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Re: help with estate planning

Quote:
I agree BRAT, but I don't think I can afford the
"full meal deal". In fact, even now that I am into
having a professional firm this up, in the back of my mind I am still thinking "I could blow this off and let my
heirs spend down what's left to straighten it out."
As it is now, the cost of it is coming out of our day to day
expense money.

JG
John, I believe you are an illinois resident? Here is a link to approved state forms in Illinois for health care directives/power of attorney: http://www.idph.state.il.us/public/books/advin.htm
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Re: help with estate planning
Old 12-21-2004, 01:19 PM   #28
 
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Re: help with estate planning

Thanks Martha! BTW, I am currently trying to figure out
if (upon my death) my spouse could collect the income from my IRA until she was 60. I am leaving the principle
amount to my children, but would like to have my widow
receive the income until she can receive my SS
benefits at age 60. Man, this stuff gets complicated.

JG
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Re: help with estate planning
Old 12-21-2004, 01:59 PM   #29
 
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Re: help with estate planning

So, any thoughts on my propsed soltuion of a 10-12 year moratorium on changes, and a 4/5 or 5/5 decision requirement?

QT
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Re: help with estate planning
Old 12-21-2004, 02:03 PM   #30
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Re: help with estate planning

Quote:
Thanks Martha! BTW, I am currently trying to figure out
if (upon my death) my spouse could collect the income from my IRA until she was 60. I am leaving the principle
amount to my children, but would like to have my widow
receive the income until she can receive my SS
benefits at age 60. Man, this stuff gets complicated.

JG

Oh John, John, this is deliciously complicated! Most of the time this is dealt with by the spouse getting minimum distributions until she dies, with the remainder to the children. No tax would be due until the kids get it and even they could delay tax by taking distributions over time. You could set up a trust to do this. However, I haven't heard of limiting the years the wife gets money, but it probably can be done. Another maybe better option is to divide up the IRA in two IRAs, a small one left to the wife and the other to the kids.

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Re: help with estate planning
Old 12-21-2004, 02:11 PM   #31
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Re: help with estate planning

Quote:
So, any thoughts on my propsed soltuion of a 10-12 year moratorium on changes, and a 4/5 or 5/5 decision requirement?

QT
QT, sorry for participating in a hijack of your thread. How will the will be set up with executors/administrators? Generally, the executor would make the decision to sell the property. Therefore, no "vote" would be taken by the heirs. As an alternative, the executor could transfer the property directly to the heirs, who then would own as tenants in common. At that point, to sell the whole building all would have to agree. If they can't agree, one or more owners could petition the court to partition the property. Because it is not practical to physically divide the property, the court likely would order a sale.

As far as the lease, your mom can do what she want now with the lease and the lease could continue for some years after she dies. This could encumber the property and make it more difficult to sell. The lease could provide it expires on her death. At that time a new lease could be negotiated by the executor. If I was the executor, I would want all heirs to buy into the lease terms.

Just thoughts, not legal advice.
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