Currently I have POA on my father's bank account and checking account, but [1] as I understand it, the POA will cease upon his death.
I will be the executor of the estate.
[2] Leaving things as is, will there be a problem paying for the funeral expenses and the various bills associated with caring for the house until it is sold?
I have seen mention of titling the bank accounts as father or son, so I would have access to the account after his death. [3] If I were to do that, would that mean that the assets in the accounts would pass to me upon his death and not be part of the estate?
[4] The intent of the will is to divide the estate equally between me and my brother, so me getting the cash in the bank accounts would interfere with that.
[5] Any advice or thoughts will be appreciated.
Thanks.
Joe
[Numbers added for reference.]
1. Correct. At death, generally the executor and any trustees for any related trusts then become in charge.
2. Dunno. The process that @GalaxyBoy outlines above is the proper way to do things. You take the original will to the probate court, get appointed executor, get letters testamentary, then you can do whatever you need. I've no idea how long that process takes.
I *think* that it's OK for you (or your brother) to put expenses on your own credit card or from your own bank funds and then have the estate reimburse you for those expenses as appropriate.
As someone else noted, funeral homes are probably familiar with the issue and I think they're pretty accommodating.
3. If you have the account titled as JTWROS then the money would pass to you. However, depending on state law, some, half, or all of the value of the account as of your father's date of death would still be includable in his gross estate and his taxable estate *even though it didn't pass through probate*.
But this has drawbacks. If the account is joint, then you can, in theory, take the money legally since you're an owner of the account. Also, the money in that account is subject to seizure if you have a judgment against you, or don't pay your taxes, or fall behind on child support. Probably not a problem for you, but it's a consideration.
A better choice is probably a POD designation. In this case, you can get the money just by showing up with your ID and the death certificate (maybe after a state-mandated waiting period). It sidesteps the issues in the previous paragraph. It still would be part of the gross estate and taxable estate even though again, it wouldn't pass through the probate process.
4. As executor, if the terms of the will permit, you can even things out by just keeping track of what you spend out of the bank account on estate-related items and what you distribute to yourself and to him. I'd probably just keep a spreadsheet, wait for everything to settle, and then settle up the tab with your brother. Even if the terms of the will don't allow you to do it directly, you can always gift your brother the proper amount, assuming the "tab balance" is less than $15K, which it probably is.
I'd think, though, that if there is, say $10K in the bank account, and you take $2K from that account for paying for house stuff, burial expenses, whatever, then you could just divide the remaining $8K 50/50 and give your brother $4K because your dad probably wants you to share 50/50 after final expenses. You shouldn't have to pay $2K for burial and house stuff and then have your brother expect $5K (half of the original amount).
5a. Maybe ask your Dad for a copy of his will and make sure that the way it's written means that it's 50/50 after expenses.
5b. Consult with your Dad's estate attorney who should be licensed to practice in the state where your Dad is domiciled. Lots of stuff written on forum boards about estate stuff is just plain wrong (quite possibly including stuff in this very post of mine).
