Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 04-20-2019, 07:34 AM   #21
Thinks s/he gets paid by the post
Cobra9777's Avatar
 
Join Date: Jul 2012
Location: Texas
Posts: 3,024
Texas allows TOD for real estate and motor vehicles. So this is all jointly owned with TOD to our 2 kids 50/50. Likewise, all financial assets are either jointly owned with TOD to the kids, or individually owned with spouse as primary beneficiary and kids as 50/50 contingent (and per stirpes). In Texas, household goods can be informally divided by surviving family if that's the only thing left in the estate.

We each have wills, including living will and durable POA, that we did a few years ago on LegalZoom for a couple hundred dollars. We like the living will and durable POA. But with the set-up above, the will itself would never be used for anything as nothing would go through probate. When one of us dies, the survivor gets everything. If we both die at the same time, the kids get everything 50/50.

After one of us is gone, the survivor can change whatever they want. Our intent is to spend down to zero. But if anything is left at the end, we are aligned that it should go to our 2 kids and grandkids 50/50 (thus the per stirpes designation on financial accounts).

Admittedly, our situation is very straightforward... adult children, no prior marriages, no business assets, no complicated scenarios, and unlikely to exceed estate tax threshold. So a DIY approach using beneficiary designations seems fine for us. I would have no hesitation seeking professional assistance for a more complicated situation, or if we lived in a state with no TOD for real estate.
__________________
Retired at 52 in July 2013. On to better things...
AA: 85/15 WR: 2.7% SI: 2 pensions, SS later
Cobra9777 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-20-2019, 08:26 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 10,331
Quote:
Originally Posted by SGOTI
I've used WillMaker Pro ... the only things not covered are physical assets and checking and savings accounts. ...
Quote:
Originally Posted by Dash man View Post
A caution about these software generated wills and POAs is you don’t know what you don’t know. ...
Exactly!

H. L. Mencken told us: “For every complex problem, there is a solution that is simple, neat and wrong.”

As a charter member of the Loyal Order of Cheapskates I am strongly attracted to DIY, but not in this case. DW spent 30 years in a megabank Trusts & Estates job, retiring as an SVP and business unit manager. I have heard many horror stories, including ones caused by defective documents drafted by non-specialist attorneys.

Look at it this way, if you have a modest estate -- say $500K -- and you pay what we did, $4500, for our estate plan, that is less than 1%. A pittance compared to the risk of problems that will not be discovered until you are on the wrong side of the grass and cannot fix them.
OldShooter is offline   Reply With Quote
Old 04-20-2019, 09:14 AM   #23
Thinks s/he gets paid by the post
zinger1457's Avatar
 
Join Date: Jul 2007
Posts: 3,222
The saying 'you don't know what you don't know' applies to attorneys also. How does one know if the attorney they are using is covering all the bases? My parents had a will drawn up by an estate attorney and it was very inadequate IMO. Even if using an attorney using products like Willmaker is a good way to educate yourself beforehand on many of the options available.
zinger1457 is offline   Reply With Quote
Old 04-20-2019, 09:17 AM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2010
Posts: 5,856
I had occasion to spend time with a family and estate lawyer. My parents did not have a large estate but he was familiar with their situation and their will.

He had a question for me that he asked of all people he dealt with who either had wills or their loved ones had wills. He wanted to know why both my parents had wills when so many others in their situation did not.

I asked him why he asked. He commented that he had far too many clients who were dealing with no wills, poorly made wills, contested wills. He said the cost of not having a proper one was huge-financially and emotionally. It was not uncommon for some of them, even the less complicated ones, to stretch out for more that 2 years. The emotional cost on the family, was often far greater than the legal cost.
brett is offline   Reply With Quote
Old 04-20-2019, 09:29 AM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 10,331
Quote:
Originally Posted by zinger1457 View Post
The saying 'you don't know what you don't know' applies to attorneys also. How does one know if the attorney they are using is covering all the bases? My parents had a will drawn up by an estate attorney and it was very inadequate IMO. Even if using an attorney using products like Willmaker is a good way to educate yourself beforehand on many of the options available.
In our market, the city magazine annually publishes a list of "Superlawyers" as rated by their peers. Another hands-off option is to interview estate specialists at bigger law firms, where the firm itself is doing some QC before an attorney is hired into he estate department. Beyond that, good old networking: Call friends, CPAs, general practice attorneys, ask for suggestions. Solo practice attorneys are like stocks: more risk. You could win big or lose big.

Re learning, there is never anything wrong with that. A good attorney wants well-informed clients and it could well save you money.

Worst option is to go to the free dinner presentations. All this will get you is guys and gals who do not have enough referral business and you can guess the reason for that.
OldShooter is offline   Reply With Quote
Old 04-20-2019, 01:50 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,008
Quote:
Originally Posted by brett View Post
....
The cost of having the wills done properly far outweighed any potential saving in a DIY job. The savings can easily be eaten up just by an executor or one of our children having to seek some legal advice or direction post our demise. We keep a separate asset and password sheet in our safe deposit box that is updated every year. Our children have access to the the box.

....
Some banks will deny access to the safety deposit boxes, once notified a person is dead, until the executor shows up with death certificate and will (and maybe probated will).

I went to the bank to open the box when Mom died, got everything out, and weeks later went in to close the bank accounts with the paperwork, and hand in the box keys.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Old 04-20-2019, 02:57 PM   #27
gone traveling
 
Join Date: Mar 2015
Posts: 3,508
Quote:
Originally Posted by Sunset View Post
I went to the bank to open the box when Mom died, got everything out, and weeks later went in to close the bank accounts with the paperwork, and hand in the box keys.
If you weren't on your Mom's designated access list, then make sure you never get a safety deposit box from this bank for yourself. I know I wouldn't.
joeea is offline   Reply With Quote
Old 04-20-2019, 05:07 PM   #28
Recycles dryer sheets
 
Join Date: Apr 2008
Posts: 483
In terms of telling your children, I told my out of state children (late 30's) that we updated our wills to take them out of my wife's will (their stepmother) and instead made them beneficiaries of both our Roth's. I told them I wanted them to have access to money right away when I passed. Surprisingly they were both upset to discuss it and many tears were shed. As years have passed I just remind them that the money is there if they need it. I would rather see them improve their life and enjoy it while I am alive. Now my youngest daughter (who was most upset) is asking to use it to buy her first home. I was surprised by their reaction when I told them, but time has healed. If she doesn't buy, it will just sit their growing until they need or I pass. My DF left me about 15k and I used that as seed money to start investing.
Idnar7 is offline   Reply With Quote
Old 04-21-2019, 12:01 AM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,008
Quote:
Originally Posted by joeea View Post
If you weren't on your Mom's designated access list, then make sure you never get a safety deposit box from this bank for yourself. I know I wouldn't.
Not a worry, it was far away.
I had the legal right to go into the box, so they let me in.
Later maybe they realized I broke their bank rules but they didn't know it.

The big problem is, some people put their will, the only copy, in the safe deposit box. Show up with death certificate, and they may deny access. So you cannot get the will. A nice catch 22.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Old 04-21-2019, 03:12 AM   #30
Recycles dryer sheets
gamboolman's Avatar
 
Join Date: Sep 2012
Location: Spring, Texas
Posts: 483
After watching my mother for 3-1/2 years lay in bed with a funnel in her stomach to feed her after debilitating strokes. Knowing that if she could have spoken that she would have said "let me go". My Dad, now long gone/deceased had made the decision to keep her alive. I understand the why but for me and ms gamboolgal - it was not the decision that we would have made, and certainly not the one that we will make for each other.

We had our wills, POA, Medical Directives, Trust, Medical POA - every legal instrument that we might need all set up. The initial fee was about $5K and that was ~8 years ago. This was done with a very well established and respected law firm in The Woodlands.

All decisions have been made. Nothing left for the kids to have to agonize over, money and estate is set up the way we want it to be - and to minimize taxes.

Just last year we reviewed and revised the documents to reflect now adult children, changing financials and in general all aspects. The revisions cost about $3K.

For ms gamboolgal and I - it is worth it. But that's just us.

Lifes A Dance And You Learn As You Go....
gamboolman....
gamboolman is offline   Reply With Quote
Old 04-21-2019, 05:12 AM   #31
Thinks s/he gets paid by the post
Badger's Avatar
 
Join Date: Nov 2008
Posts: 3,395
Quote:
Originally Posted by Stormy Kromer View Post

I have a 3 page letter of instructions for each of our 2 children on where things are and who to contact. They'll each get a copy of all the above mentioned paperwork, along with information on how to access our original copies.

I gave them some very simple investment advice. "Take all the money and put it in your Vanguard Accounts" I suggested putting it all in the Target 2065 Fund and get back to work, and when you're ready to withdraw, never draw more than 4%. I wanted to suggest one fund that they could set in place for life and not think too much or rely on a FA to manage what they can do themselves without paying 1.5% a year. I think this is a good recommendation.
We have to update soon and I think I will include these ideas. Both of the grown children are responsible people but don't really have a clue about handling or investing money. I think they would appreciate the guidance.


Cheers!
Badger is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Update on SS adjustment for ER... That's all? Telly FIRE and Money 29 11-09-2004 08:07 PM
Number of Millionaires Update intercst FIRE and Money 15 06-17-2004 10:26 AM
Debt Countdown Update BigMoneyJim Young Dreamers 7 06-08-2004 07:27 AM
Another Trinity update Nords FIRE and Money 0 03-23-2004 10:16 AM
Update on Bernstein calculator arrete FIRE and Money 7 01-19-2003 06:59 AM

» Quick Links

 
All times are GMT -6. The time now is 05:59 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.