Settling an Estate

[GalaxyBoy]

One final cavaet:

I changed her mailing address to mine. BIG MISTAKE! She loved to donate to charities and I STILL get requests 8 years later. If you change her mailing address use a PO Box.

There’s a “deceased do not mail” list. Take a death certificate to the post office and they’ll fix things up. I changed late DF’s address to mine and started getting junk mail for Mom, who died 22 years earlier.

 

[GalaxyBoy]

Oh, but don’t be too quick to add the recently deceased to a do not mail list. Bills, checks, and such might trickle in for a while.

 

[The Cosmic Avenger]

There’s a “deceased do not mail” list. Take a death certificate to the post office and they’ll fix things up. I changed late DF’s address to mine and started getting junk mail for Mom, who died 22 years earlier.

https://www.ims-dm.com/cgi/ddnc.php

 

[nwsteve]

Yep. Funeral director notifies SS, he tells me. There are three SPIA annuities with no residual. My plan is to call the bank, the brokerage, the three annuity companies, the two pensions, the Life Insurance Company and the IRA administratior, once I have the dealth certificates and follow their instructions on what to do next. I've also notified her dental insurer. Do I have to notify Medicare - does anyone know? She has a United Health medicare Advantage Plan. I assume I should notify them as well?

When my DM passed, I contacted SS directly, and they instructed me I had to return a pro-rata portion of her last check. They provided the $$ amount they wanted. So, that may need to be another call since your DM passed mid-month.

 

[Golden sunsets]

I expect to.

You still may be required to file a return.
Gill

 

[Golden sunsets]

Thanks Nwsteve. But SS pays in arrears, so the 2/1 check was for January. She died on 2/8. The funeral director will notify SS electronically, probably already has and I assume there will not be a 3/1 payment as its still relatively early in the month.

When my DM passed, I contacted SS directly, and they instructed me I had to return a pro-rata portion of her last check. They provided the $$ amount they wanted. So, that may need to be another call since your DM passed mid-month.

 

[Golden sunsets]

I am sorry to hear about your loss.

Banks are obligated to return the funds under federal law and there is no action required on the part of a beneficiary/account co-owner.

Exflyboy5; I'm curious why you returned the SS. If she passed in the month of February, she was entitled to the February check, which was her January payment.

 

[gwraigty]

SS retirement benefits are paid in arrears according to this SS booklet:

https://www.ssa.gov/pubs/EN-05-10077.pdf

We pay Social Security benefits monthly. The benefits
are paid in the month following the month for which they
are due. For example, you would receive your July benefit
in August.

There are no pro-rata payments. From page 11:

If a beneficiary dies

Let us know if a person receiving Social Security benefits
dies. We can’t pay benefits for the month of death. That
means if the person died in July, the check received in
August (which is payment for July) must be returned.
If the payment is by direct deposit, notify the financial
institution as soon as possible so it can return any
payments received after death.

 

[ExFlyBoy5]

Exflyboy5; I'm curious why you returned the SS. If she passed in the month of February, she was entitled to the February check, which was her January payment.

Because there was an extra month's payment. Notification by the funeral home to SS folks didn't stop the extra payment. Plus you aren't entitled to the payment for the month of death (as previously mentioned).

 

[Katsmeow]

Get more copies of the death certificate than you think you'll need. They come in handy more often than you might expect.

It depends. I got a bunch of death certificates for my mom. I used exactly one of them. It wasn't that no one asked for a death certificate. They did. But everyone would take a copy or PDF except one place (that I don't recall). Some of the places wanted to see the actual death certificate (such as the bank) but they scanned it in and then returned it to me.

Why would an EIN be needed if the beneficiary is an individual that already has a SSN that serves as their TIN?

I had to have an estate bank account as some checks were received that were payable to my mother's estate. To do this I needed an EIN. It was easy to get online.

Seeing that I am the executor, is there any sort of paperwork that names me as Executor or PA, aside from the will itself. I am set to receive a dozen death certificates on Thursday. I have printed out the brokerage assets, cost basis and tax lots, as of date of death.

My DIL's father is an estate attorney and a friend. Mom and Dad's attorney has retired, so I think I'll set up an appointment with him or one of his junior associates and ask for advice on how to do this all myself. It won't hurt and I will have the comfort of knowing if I am missing anything.

I agree that consulting with a knowledgeable attorney in your state is important. Estate procedures vary from state to state. I was executor of my mother's will and I went through probate and received letters testamentary from the court. Even though I was the sole child and heir I was asked to provide copies of the letters testamentary on occasion while I was working on her estate. You will need to ask the attorney what procedure you will need to use in your case.

Do I have to notify Medicare - does anyone know? She has a United Health medicare Advantage Plan. I assume I should notify them as well?

I was told that Social Security would notify Medicare. My mother had a supplement plan and the premium was paid for June right after she died toward the end of May. Same thing on her Part D plan. So I did need to get a refund from them of those premiums.

 

[Golden sunsets]

It depends. I got a bunch of death certificates for my mom. I used exactly one of them. It wasn't that no one asked for a death certificate. They did. But everyone would take a copy or PDF except one place (that I don't recall). Some of the places wanted to see the actual death certificate (such as the bank) but they scanned it in and then returned it to me.



I had to have an estate bank account as some checks were received that were payable to my mother's estate. To do this I needed an EIN. It was easy to get online.

I made most of the calls I need to yesterday and so far, I only need to provide a copy of the death certificate, similar to your experience.

I think I'll be able to avoid the estate bank account. I have one call left to make, to the brokerage where the bulk of the funds are. I've been waiting until I receive the death certificate as I expect to be frozen from even looking at the account once I notify them, so I want to be prepared to forward the DC immediately and hope for a quick turnaround on renaming the account in my name with a stepped up basis.

 

[GalaxyBoy]

It depends. I got a bunch of death certificates for my mom. I used exactly one of them. It wasn't that no one asked for a death certificate. They did. But everyone would take a copy or PDF except one place (that I don't recall). Some of the places wanted to see the actual death certificate (such as the bank) but they scanned it in and then returned it to me.

This was my experience as well. In at least one case - the DMV I think - they took it from me, looked at it, typed something into their computer, and handed it back. I got 10 official copies and I think I must have at least five left. No regrets on that, though; it would have been a minor PITA to get more.

This may not apply to the OP, but I also got at least 10 sealed copies of the letter saying I was the executor. Those, I needed more than the death certificate. Luckily, the county told me they would give me as many as I wanted (within reason, I'm sure) at the original meeting with them, but would charge me if I had to come back. I think I might have one or two of those left.

 

[Golden sunsets]

I was just skimming through most of this thread, so I might have missed something here. But....did the OP say something about an IRA?

If so, be meticulous in how you handle the transfer. The IRS is very rigid about inheriting IRAs.

- Assume your mom was taking withdrawals, so as beneficiary you must continue those, but based on your age. Any tax adviser can help you with this, or just research it on the IRS website.

- Most important, be CERTAIN you instruct your designated financial institution to set up an Inherited IRA account to receive your mother's retirement account. Do not, under any circumstances, mix her assets into your own retirement account, nor take the assets in a check made out to you (with the laudable intention of opening a new IRA personally).

Inherited retirement accounts must always be kept separate, and the "cleanest" way to do it is to have the assets transferred directly between financial institutions, never personally touching it. The IRS just loves those unknowing inheritors who aren't aware of the rules so the Feds can claim the whole thing as income tax-liable, LOL.

My condolences to you on your mom's death. Dementia is so hard on families. You're right, it's something of a relief when you don't have to face an ever-worsening situation. It's a cruel disease and too often heart-breaking.

I spoke with the IRA issuer yesterday. It is a life insurance company. It's a tiny amount. But I don't need any more income this year, so withdrawing it all at once makes no sense. Rather than rolling it over, I've filled out their claim form and chosen the option to claim this years RMD based on my mother's age and I've also chosen the 10 year deferral option for future years. I plan to withdraw even amounts over the next 5 years until it is fully depleted.

 

[braumeister]

I made most of the calls I need to yesterday and so far, I only need to provide a copy of the death certificate, similar to your experience.

Things have certainly changed for the better. When my dad died in 96, I got ten official copies and had to get six more. When my mom died in 12, I needed eight official copies. And they were both extremely simple affairs.

 

[GalaxyBoy]

Regarding the EIN and an estate bank account, bear in mind that the estate is a separate entity from the deceased or the heirs. It sounds like your situation is much simpler than mine, but I had a ton of stuff to run through the estate's checking account. The funds from my Dad's accounts were transferred to the estate's accounts, and I had to pay all remaining bills, as well as receive remaining checks, in those accounts.

But, OTOH, I had multiple heirs to make an accounting to, and the limit to avoid probate in my state was quite low; both situations which may not apply to OP. In my case, the sale of the real estate was the biggest chunk which put it way over the limit. The frustrating part was that the state wouldn't allow the estate to be closed out for at least 12 months. With the low interest rates we have these days the cash from the house earned virtually nothing. At least I didn't have to file a 1041 since the interest earned was less than the limit.

 

[ERD50]

Originally Posted by ERD50 View Post
In our experience, the lawyers only made things more difficult and they charged unscrupulous fees when my FIL passed.

-ERD50

Find a better lawyer. ...

Easier said than done. How does one know ahead of time if the lawyers are any good or not? At any rate, they weren't my choice, they were the ones my MIL/FIL hired, and I had to deal with them when FIL passed. We DIY when MIL passed, and it was easier/cheaper/less-stressful than dealing with those blood-suckers.

Originally Posted by ERD50 View Post

Maybe someone can chime in on that, or I may look into my NOLO book later.

-ERD50

So you will use your book and perhaps come back and offer legal advice? Got it.

I'm just catching up on the thread, and I think the question has been answered, but I will try to review it later (got some projects going on). At any rate, offering up some reference materials for the OP to review so they can educate themselves is hardly "offering legal advice".

If one doesn't educate themselves, how would they find a "good lawyer" as you suggest above?

-ERD50

 

[2177V]

My dear mother passed away last weekend. She was almost 95. She had developed dementia which progressed pretty rapidly over the past 2.5 years. I feel as though I had been losing her by inches over that time period and much of my grieving had already taken place. It was a blessing in the end, something which I can now admit. She was a lovely mother. I was very fortunate to be raised by she and my Dad who passed 10 ago.

I will meet with an attorney next week but I was hoping to understand the mechanics of the transfer of her assets. She has a checking account that I am a co owner of and a brokerage account in her name, naming me as sole beneficiary. There is a small whole life policy and a small IRA, both naming me as beneficiary. I am an only child and her executor. That's it. Total value is fairly substantial but well below the federal and state thresholds.

So I am wondering what the mechanics will be of transfering the assets. I'm thinking that as I am joint on the checking account, I could write a check at any time to myself and then close the account. As far as the brokerage account is concerned, there will be a step up and 4 of the holdings I want to hold onto. The remainder I want to sell and reinvest in our AA. I'd like to sell those as soon as possible, thus creating no gains or losses. Would I do that before transfer of assets, or after? If before wouldn't that create a seeming tax event for the brokerage account in her name? Also how do bonds held in the account work? There is one individual bond with a maturity date of 9/20. Is there a payable on death component of individual bonds? If so is it payable on demand at par? I think there is appreciation on that bond, over cost, so would I sell it now to capture the appreciation with no capital gain?

Thanks for your input.

Sorry about your loss. Your Mom was smart to name you the sole beneficiary. When my Mom past away she did something similar but because I had three other brothers and my Mom set up POD accounts for each of her sons. Her house was granted to the oldest son who took care of her in her final years. No one objected to that wish. We consulted our attorney and confirmed no probate is involved and we simply transferred the POD accounts into our name after showing the death certificate and our ID to the banks and financial institutions. I suspect you may go thru a similar process. When you talk to your attorney, verify that no probate is involved and all you have to do is provide your ID and the death certificate to transfer assets in your name.

It sounds like there should be no probate involved provided there is no claim or dispute regarding her estate. The funeral director should have requested that you publish her death in the newpapers. This start a clock when a claim can be filed by a third party. However, each state is different so this is a question for your attorney. Typically, some hospitals or doctors may file a claim on any significant and outstanding medical bills.

Some of your issues may involve tax issues. Your attorney should be knowledgeable of probate laws in your state but your attorney may refer you to a CPA. Your attorney may have a CPA as part of his or her staff. I suggest you bring all of the documents with you.

 

[FurBall]

My mother oased away three years ago on PA

All her assets were in POD or beneficiary accounts dornthe six siblings.

I spent $200 on her attorney to verify I did not need to file her will for probate.

I contacted each account owner to split the assets for the six of us.

I filed the PA estate tax asap and then collected the amount due from the sibs.

Everything was fairly easy peasy. OPM was the hadest.

 

[HI Bill]

When my mom passed a couple of years ago in CA, due to the house she had, I had to hire an attorney, and the house and a piano had to go through probate. But for IRAs, brokerage accounts, etc., I handled all of that stuff outside of probate without an attorney. I contacted Medicare, which had already been contacted by the STRS. I had joint ownership of the checking account, and left it open for 12+ months to pay bills, including those on auto pay. Best wishes. This isn't hard, it's just a little time-consuming!

 

[caramel]

Golden I have no practical advice but I wanted to offer my condolences. xo

 

[Retired Expat]

My dear mother passed away last weekend. She was almost 95. She had developed dementia which progressed pretty rapidly over the past 2.5 years. I feel as though I had been losing her by inches over that time period and much of my grieving had already taken place. It was a blessing in the end, something which I can now admit. She was a lovely mother. I was very fortunate to be raised by she and my Dad who passed 10 ago.

I will meet with an attorney next week but I was hoping to understand the mechanics of the transfer of her assets. She has a checking account that I am a co owner of and a brokerage account in her name, naming me as sole beneficiary. There is a small whole life policy and a small IRA, both naming me as beneficiary. I am an only child and her executor. That's it. Total value is fairly substantial but well below the federal and state thresholds.

So I am wondering what the mechanics will be of transfering the assets. I'm thinking that as I am joint on the checking account, I could write a check at any time to myself and then close the account. As far as the brokerage account is concerned, there will be a step up and 4 of the holdings I want to hold onto. The remainder I want to sell and reinvest in our AA. I'd like to sell those as soon as possible, thus creating no gains or losses. Would I do that before transfer of assets, or after? If before wouldn't that create a seeming tax event for the brokerage account in her name? Also how do bonds held in the account work? There is one individual bond with a maturity date of 9/20. Is there a payable on death component of individual bonds? If so is it payable on demand at par? I think there is appreciation on that bond, over cost, so would I sell it now to capture the appreciation with no capital gain?

Thanks for your input.

Sorry about your mom’s passing. As prepared as we think we are, and no matter sometimes how we know it is for the best (my fathers case anyway) it is still damn hard..

I may be too late but went through this a few of years ago with my dad. First you take the Death certificate and the will naming you as executor and get Letters Testimentory nameing you the executor by the court. Remember that all the costs related to the settling of the estate are deductible.

If the estate is of any size and has assets to sell, her home, art, jewelry etc. you might want to do it right. Estates must file tax returns and they have to be finaled and accepted by the Fed and State or you as the Executor will have to pay them. 3 years and counting for New York state to accept the estates final return.

Does your state have inheritance taxes? You then file for a Fed ID number for the estate and let the estate transact all business.

So will there be any income on which to pay taxes. If so, you want to reduce it. The estate can sell things with no income tax, only estate tax, but if you take possession of it you might. It is a pain but some good professional advice can save you time and money. It did in my case for sure.

Also now is the time to run down any unclaimed funds that are out there in her name or yours for that matter. There might be more than you would expect . Www.unclaimed.org. Check every State she lived in. Any names or nick names she used etc.

I missed that completely until my attorney suggested it. That alone paid his fee.

 

[Finance Dave]

I’m sorry to hear of your loss. Got here late so it seems u have all the advice u need.

 

[Golden sunsets]

Thanks for everyone's advice, anecdotes and kind words. I was able to finish my to do list yesterday. Everything went very smoothly and now I am just waiting for the brokerage funds to transfer to my name stepped up to DOD valuations. I was told it should take about 7 days for the transfer. Life insurance claim is in the mail. Small IRA transferred to my name. Notifications to pensions, annuity companies, health insurance providers all completed. I asked my DIL's father (trusts and estates attorney) when he was at our house after the funeral if I was missing anything and he said no, we had set up everything properly.

The funeral was friday. I delivered the eulogy, which I'm happy to say I was able to do without breaking down. It was cathartic to be able to honor my mother with words from my heart. I usually avoid public speaking, but I guess I've finally outgrown the fear of doing so.

So now, all that is left is to fly back to our winter digs and bake the head cold I have out of my head and the sadness out of my heart.

 

[pacergal]

Glad things have gone smoothly for you.
It will take some time for your heart to heal, take your time to grieve and remember your Mom with love.

 

[Venturer]

My DIL's father is an estate attorney and a friend. Mom and Dad's attorney has retired, so I think I'll set up an appointment with him or one of his junior associates and ask for advice on how to do this all myself. It won't hurt and I will have the comfort of knowing if I am missing anything.[/QUOTE]


My condolences as well. I was executor of my grandmother,and then for my mother. I have an uncle who is an attorney and he just said go get the paperwork from the probate and make sure all bills are paid. Pretty simple if the estate isn't really big and no one contests anything. I had it all done within about a month but waited to close out completely about 3 months. Good luck.