Is an executor required to inform TOD beneficiaries and provide death cert?

[badatmath]

I'm already ready to redo my estate plan but it crossed my mind if I have a TOD to a charity how would anyone find it. The charity does not know I exist or that I passed and certainly has no right to a death certificate. I already asked AI and got a lot of impractical nonsense for my specific case and of course I will be asking the attorney but I'm trying to walk in the door prepared. My executor is unlikely to be doing anything of much use. Smart but inexperienced and likely disinterested as I have left nothing to him (unless I change that too which isn't off the table but he is well off and unlikely to be impressed with a bonus).

 

[pb4uski]

... My executor is unlikely to be doing anything of much use. Smart but inexperienced and likely disinterested as I have left nothing to him (unless I change that too which isn't off the table but he is well off and unlikely to be impressed with a bonus).

Sounds to me like you need to select a different executor.

BTW, it isn't uncommon for executors to be compensated for their time administering the will.

 

[kumquat]

BTW, it isn't uncommon for executors to be compensated for their time administering the will.

Here in Canada (at least my province) it's a legal requirement that can by waived by the executor. When I was executor for my DM, I was a 'remainder man' (meaning some siblings got specific holdings and my sister and I split what was left). I had the option of charging up to 5% of the estate and paying income tax on it or charging nothing and splitting what I didn't charge with my S tax free. At my MTR it was a wash so I declined the fee.

 

[razztazz]

I put stuff like that directly in the Will. That way it's Don't think, just do.

 

[GalaxyBoy]

Sounds to me like you need to select a different executor.

BTW, it isn't uncommon for executors to be compensated for their time administering the will.

Dear old Dad’s will specified a percentage to go to the executor. Considering the hours I put in performing those duties I didn’t feel the least bit guilty about taking that sum.

 

[badatmath]

Sounds to me like you need to select a different executor.

BTW, it isn't uncommon for executors to be compensated for their time administering the will.

Unfortunately I don't have any better choices. I think I'm probably on the "update plan every few years" train for now.

 

[badatmath]

I put stuff like that directly in the Will. That way it's Don't think, just do.

Well then there would be probate. TOD would bypass it and would reduce the mess for the exec (so I assumed). I think the attorney should probably have pointed out I over complicated a few things but I will get it fixed up.
Also IIRC the executor gets a fee based the value of the estate so in my best interest to keep it low.

 

[badatmath]

I now notice @Z3Dreamer has a similar thread on this showing kind of what was thinking would be an issue.

 

[razztazz]

Well then there would be probate. TOD would bypass it and would reduce the mess for the exec

I was referring to the notifications. The TOD can still be the modus operandi but "how do people/agencies get notified" I read as the question. The Executor will notify the following..... etc etc

 

[Kings over Queens]

Unfortunately I don't have any better choices. I think I'm probably on the "update plan every few years" train for now.

The lawyer or firm who drafted the will can serve as executor.

 

[disneysteve]

You need to choose an executor who you trust to do the job. And your will should specify the disposition of all of your accounts and possessions.

 

[splitwdw]

Just had my Will updated. My Will is only 6 pages long. Most of it is about a trust for my one nephew who is autistic. The beneficiaries are named and it states they get equal shares of the estate. I have beneficiaries listed on all my financial accounts (TOD or POD) so I don't need to list them in my Will. My executor has a list of all beneficiaries, their addresses and phone number and my accounts. The executor also has the combination to my safe where I have all my paperwork. That includes Will, POA, Health Care POA, house deed, car titles, etc. The executor knows to notify the beneficiaries and to give them each copies of my death certificate and information on the accounts they are listed on. The beneficiaries have to contact the financial institutions. Other then notifying the beneficiaries my executor only has to sell the house. Told the executor not to drive themselves crazy trying to sell everything in the house and garage. Told them to offer items to beneficiaries first then whoever wanted my things. I put this in writing in case any beneficiary questions it. They will be inheriting quite a bit of stocks, bonds & cash but there are penny pinchers in some of the beneficiaries. I don't want them driving the executor crazy. I believe in my State that the executor can take a 5 or 6% fee.

 

[badatmath]

I have a TOD on the house but I realized today I didn't understand what that actually meant. I meant sell the house and give the money away not split the house into co-owners. Attorney failed to mention I was asking for something stupid without realizing it. They were charities and certainly would not keep the house but i don't want multiple people having to agree on offers.

 

[Drake3287]

Dear old Dad’s will specified a percentage to go to the executor. Considering the hours I put in performing those duties I didn’t feel the least bit guilty about taking that sum.

Yep, and in California there's a formula that's based on the size of the estate that determines how much an executor gets paid. Like you, I earned every cent for being my parents executor but in order to keep peace with siblings I only took half. If I remember right, a million dollar estate had roughly a $20k executor fee.

 

[pb4uski]

I have a TOD on the house but I realized today I didn't understand what that actually meant. I meant sell the house and give the money away not split the house into co-owners. Attorney failed to mention I was asking for something stupid without realizing it. They were charities and certainly would not keep the house but i don't want multiple people having to agree on offers.

Did you tell the attorney that your intent was that upon your passing that the house would be sold and the proceeds distributed to your beneficiaries? Is your attorney a mind reader?

 

[Koolau]

Did you tell the attorney that your intent was that upon your passing that the house would be sold and the proceeds distributed to your beneficiaries? Is your attorney a mind reader?

At a minimum an attorney should assume that s/he is smarter (more knowledgeable) than the client. Clients don't know the law and the attorney should explore with the client what they REALLY want - not just DO what the client SAYS they want. Clients don't know those "subtleties" that an attorney knows.

I pay an attorney to help me traverse the straits of the River Styx and help me avoid the mines and snags and lurking creatures.

 

[Texas Proud]

There is a problem.. what if the estate does not know the POD?

I know that my mom had a life insurance policy through her teacher retirement and when I called as executor they refused to talk to me... I wanted to find out who she left it to and if it was going to be split...

Got lucky and one time when I called I did not say I was the executor and BAM, they talked to me... as I was the beneficiary... I still think it is stupid to not talk to me when I am the executor or at least say something to let me know...

 

[big-papa]

The lawyer or firm who drafted the will can serve as executor.

Careful on this one - from personal experience that's a good way for some serious foot dragging & high charges to the estate to happen.

 

[Slim11]

I.would think that the institution needs the death cert , once they receive that they will try and find the charity. Best to include the charity name current address and what they do. I had charities change names, took a bit to track them down.

 

[MdaPetralia]

Note that the calculation of executor fees should exclude funds going to beneficiaries via POD and TOD accounts as they bypass probate. However, the executor would need to know about these accounts in order to determine the taxable estate value for federal and/or state tax purposes.

 

[audreyh1]

Answering the thread title.

TOD on the account bypasses a will, so the executor has no obligation.

Apparently you have to be a qualified applicant to obtain a recent death certificate - an immediate family member, a legal representative such as an executor, etc.

So some how instructions have to be provided.

 

[badatmath]

Well as to my executor "knowing" there is a POD all my financial statements show it on the ownership line. Like "badathmath, POD to x". The TOD for the house slightly less obvious but is included my paperwork with the will, etc. I'll add a page to that section that just to be more clear once I get my updates made.

 

[disneysteve]

some how instructions have to be provided.

Exactly. The executor should have a list of everything that needs to be distributed, contact info for all involved parties, etc. If not the executor then the estate attorney or some other trusted individual. Somebody needs to be in charge of notifying everyone who needs to be notified.

When my cousin died I was the executor so all of that was my job. In my case it was simple because I was also the sole beneficiary.

 

[audreyh1]

Exactly. The executor should have a list of everything that needs to be distributed, contact info for all involved parties, etc. If not the executor then the estate attorney or some other trusted individual. Somebody needs to be in charge of notifying everyone who needs to be notified.

When my cousin died I was the executor so all of that was my job. In my case it was simple because I was also the sole beneficiary.

And someone who is able to obtain a death certificate.

 

[Aerides]

Unfortunately I don't have any better choices. I think I'm probably on the "update plan every few years" train for now.

With a little money, one always has choices. If you care about what happens to your wealth when you pass, and it sounds like you do, better to use a little of it to get a good executor vs. one that's not going to be trusted to get it right.