What is she going to do? 5 Estate Settlement Hassles To Avoid

WESTBOROUGH, Mass., Dec. 13, 2012 /PRNewswire/ -- The following is a statement from Paul J. Mauro, President and CEO, Legacy Financial Advisors, Inc.:

This has been my year for settling the estates of some long-term clients, who shall be missed by their families, even while they curse them a little bit. Here are a few steps to take to avoid the problems that I have encountered in just the last 12 months.

    1. Please make sure your name, birthday and social security number are all
       the same on all your documents, records and papers.  In a recent case a
       wonderful man passed away and we went to file claims with his pension,
       social security and insurance companies.  When a copy of the death
       certificate and the birth certificate were laid side by side, guess what,
       different birthdates were listed.  Different dates of birth, or in
       another case, a different birth name which was dropped 30 years ago can
       lead to long delays and costs to prove real identity.  The stress that
       widows and widowers have is NOT reduced by this type of hanging issue. 
       In fact it makes things very tense.  Please check and be sure on all your
       important papers that the dates and names match up.

    2. The probate process may seem like no big deal when we look back to the
       passing of our parents and grandparents who did not have much.  Now in
       2012 with larger estates more complete data from Internet databases and
       many long lost relatives on the web, it gets more serious.  If you own a
       home in your state but you have a cottage, mountain house, or camp in a
       faraway place, your family will have not one state probate, but two.  In
       many cases the rules of that other state are totally and completely
       different than your home state.  This process requires your family to
       obtain outside counsel in that state, make required filings and yes, wait
       and wait.  The land, which may have little value, can often cost many
       thousands to get released from probate to sell or dispose of.  Real
       estate is the primary reason to do revocable trust work late in life so
       children can legally avoid the costs and hassles of probate.  I am still
       waiting for the probate results on a Maine farm, a North Dakota field
       with oil rights, and a Florida condo, so the children can sell them and
       move on.

    3. When we age, often there is a period of time that we cannot deal with our
       financial affairs and family has to take over.  I have been working with
       a family who did not prepare in advance until Alzheimer's took over the
       life of the family matriarch.  The problem in this family is that the
       husband was a very successful scientist with a huge laboratory tied to
       one of the fine Massachusetts educational institutions.  As a result, he
       has a multi-million dollar retirement fund for which he is required at
       age 80 to take minimum withdrawals.  The problem is, under the plan rules
       of his former employer, he cannot take withdrawals without his wives
       notarized signature, and his wife cannot sign.  When we had the telephone
       consultation with the company they told us the old power of attorney will
       not suffice, and to take your withdrawal so we will not release the
       money.  The plan administrator was very polite and told our firm's lawyer
       that this fellow would just have to go to court and get a guardianship of
       conservancy over his wife.  That, ladies and gentlemen means going to
       probate.  This man tried to play by the rules but his wife got sick and
       now he has a 50% tax penalty for not taking his required minimum
       distribution and his retirement account is basically held hostage while
       we go to court.  Please update your legal documents, roll over your
       employer plan to your own IRA for control and make sure you have the
       right papers to control your spouse's retirement if they become disabled.

    4. Ladies please be clear about the jewelry.  I know it sounds like a small
       thing, but a family I have known for 20 years is fractured over a diamond
       ring because one daughter took it home.  With five children and plenty of
       money in the estate, these parents left a large inheritance.  In the end
       however, one daughter (of 3) and two boys are upset with each other over
       this one small thing.  Most wills and trusts provide space for the
       memorandum to list clearly who gets what of material goods like clothes,
       jewelry and furnishings.  Some instructions remove assumptions and bad
       feelings.  Naturally when there is one ring and 5 children decisions have
       to be made.  I'm afraid this family will never have another Thanksgiving
       or Christmas where they remember mom and dad without this cloud over
       them.  It's a sad thing and ultimately the parents' fault.  If you have
       personal items, especially of large monetary value, make a list and
       attach to your will or trust.




    5. Boys and their toys are not a big issue during life.  Men have car
       collections, tool collections and even stamps and coins.  For some reason
       men collect things that they enjoy, but when they pass away, the wives
       are stuck with a monumental cleanup job.  I am liquidating an estate
       right now with a huge number of tools and wood working materials the
       spouse will never use.  I have a car collection and automobile tools she
       will never touch.  This man was a collector of things and he never had
       one, he had three.  Just thinking about where this collection will go and
       how to get it to the auctioneer and turn the toys into cash is a giant
       job.  So if you love your spouse, leave a guidebook, a set of
       instructions or a wish list.  Do you want the tools to go to a tech
       school?  Let us know.  Is there some place we can call to sell the rare
       wood?  These are things we need to know.In summary, a few pieces of
       paper, a road map and some instructions would be nice.  Since we all
       collect more things over time, take a few minutes to plan where and how
       your family will handle these things when you're gone.  This way we can
       remember our loved one for the good times and the great memories, not the
       hassles of cleaning out their junk.Paul J. Mauro

SOURCE Legacy Financial Advisors, Inc.