Since we do so many probates, we see what parts of your planning actually helped with probate (dos), and which ones didn’t really matter (don’t bothers).
We are reviewing this info so that you don’t spend too much of your valuable time on planning that won’t help all that much. This is based on our annual executor check in calls, in which we hear from our clients who have well intended plans to gather information for us, should we need it. Which in most cases, we don’t. We are trying to save you stress and make the estate planning process a little bit easier.
Solo ager estate planning “dos”
Good and proper storage of original documents is important. It’s best to keep the original with your professional executor or other third party. Do not keep it yourself. This is for many reasons, such as access your home or apartment. Additionally, if a third party loses your will, probate could still move forward with a copy. However, if you lose it, it’s presumed that you intentionally destroyed it. Same goes for a safe deposit box – it’s hard to get access to this. It’s not impossible, but it’s very challenging.
Update your emergency contacts and be sure your executor is among those listed. An emergency contact list should be given to someone who will know of your death. This could be a building manager, doorman, neighbor, primary care physician, etc. You want to make sure they know who to notify in the event of your passing, including of importance, your executor and next of kin.
You should also review your beneficiary designations. We have talked before about why we don’t like beneficiary designations, but if you have them, make sure up to date. Or better yet, get rid of them. You certainly want to make sure they represent your wishes, and not your wishes 10 or 20 years ago.
“Don’t bothers” for your solo ager estate plan
Don’t use treasure maps. We have received detailed letters and emails with where the will is, where their important documents are, and even where their spare keys are. More often than not, the location of these items will change by the time of your passing. It may take us longer to use the treasure map to find them than it would to simply look on our own. Plus, it would be a waste of time searching if they have been moved. It’s not worth the amount of time you’d spend writing this type of “map.”
We don’t need contact lists. Typically, the lists we’ve seen include building managers, financial advisors, etc. These change often. We find when we make these calls, the people on the list no longer even work there.
Speaking of lists, detailed lists of assets which include balances and very specific info is also not needed. High level information is good enough (such as the name of financial institution). Balances change daily, so by the time you write it down, it’s likely changed.
Sort of helpful
There are a few things we would categorize as sort of helpful, but you don’t need to spend time on these, if you don’t want.
Password lists are one example of a sort of helpful thing to do. A list is nice to have, but post-death access to online accounts is not permitted, even if we have your password and log in. We simply can’t use those passwords. Email and social accounts may have some use to be able to access names and addresses, although again, we have rarely used these. Same with phone passwords. We seldom log into a decedent’s phone, and if we do, it’s only to find a contact name that we couldn’t find elsewhere.
A high level asset list is sort of helpful. It will give us a general sense of what you own to point us in the right direction. We would use this list along with the other items we collect (mail, past tax returns, bank statements, etc.) to be sure we aren’t missing something.
A list of contacts that are likely to not change is also sort of helpful. This includes next of kin, your primary care doctor, and possibly your CPA. It’s good info to know, but likely, we would get the newest information from the documents we have gathered.
https://anthonyspark.com/wp-content/uploads/2023/05/E316-Estate-Planning-Dos-and-Dont-Bothers-for-Solo-Agers.jpg10801920Anthony Parkhttps://anthonyspark.com/wp-content/uploads/2015/10/logo-600.pngAnthony Park2023-05-03 07:00:392023-05-02 12:45:41E316 Estate Planning Dos and Don’t Bothers for Solo Agers
As you can imagine, probating a hoarder’s estate adds a few more complications. In this episode, we will talk about how to deal with some of the main challenges.
https://anthonyspark.com/wp-content/uploads/2023/04/E315-How-to-Probate-a-Hoarder-Estate.jpg10801920Anthony Parkhttps://anthonyspark.com/wp-content/uploads/2015/10/logo-600.pngAnthony Park2023-04-26 07:00:052025-02-19 08:52:49E315 How to Probate a Hoarder Estate
Could you imagine doing a ton of work and not getting paid? It’s frustrating, but it happens. One of the drawbacks of nonprofessional executors is they are more likely to lose their executor fee, despite doing months, even years, of work for the estate.
It’s understandable that beneficiary designations seem like an excellent and easy estate planning tool. But from our experience, when someone actually dies, beneficiary designations are often bad news.
https://anthonyspark.com/wp-content/uploads/2023/04/E312-Why-Beneficiary-Designations-Are-Bad.jpg10801920Anthony Parkhttps://anthonyspark.com/wp-content/uploads/2015/10/logo-600.pngAnthony Park2023-04-05 07:00:122025-03-03 07:57:05E312 Why Beneficiary Designations Are Bad
Tax clearance is taking even longer lately because of a new twist: 1040 verification. Everyone agrees it’s important to keep the tax bogeyman satisfied, but all these layers of delays are frustrating our clients and us. Below we’ll explain what’s happening here.
What is tax clearance and why does it take so long?
The executor needs to make sure that the IRS agrees no more taxes are due. This is important because the executor is personally liable for unpaid taxes. If the executor makes distributions to the heirs and the heirs sign indemnity agreements, then the heirs will be liable for taxes.
Maybe you’re thinking that your loved one’s estate was so small that there’s no estate tax. We’re not just talking about estate tax, but final 1040s, payroll, small business, retirement payouts, and just about everything else. Still don’t think it applies? You’d be surprised how complex someone’s tax situation can be. The IRS is pretty good at combing through the past six years to make sure they get everything owed to them (it’s the IRS’s last chance to be paid).
Why does it take so long, generally? As with any bureaucracy, it takes the executor a while to gather all information and past returns. (Try getting a tax transcript quickly from the IRS!). The IRS will also take their time since this is their last bite at the apple. And lately, everything related to the IRS takes way longer due to unprecedented delays and backlog. As you recall, the lock-downs were in 2020. It’s mind boggling how the IRS is so backed up three years later.
Now the IRS wants verification
If the estate is owed a refund on any of its final returns, the IRS now requires identify verification of the decedent. It’s understandable that the IRS is taking these measures, since scammers posing as IRS agents have become ubiquitous. But the result is that estates are getting stuck for more weeks or months because of $10 refund.
Why does IRS verification cause longer delays?
It’s because all bureaucracies are slow, and are even slower if your situation is not on their main “script.” For example, if you go to the bank to open a personal checking account, it’s easy for the tellers who open checking accounts several times a day. But if you have a non-traditional request, such as closing a decedent’s account, the teller probably has to go ask a manager for help. When you go off-script from procedures that an employee is used to, then things can go haywire.
Whether it’s multinational banks or the largest government in the world (US), these bureaucracies struggle with edge case situations. It’s very hard to find a competent banker, branch manager, or IRS agent who understands what an executor is, let alone the correct procedure for dealing with a deceased customer or taxpayer. You’re pretty lucky if you speak to a knowledgeable agent on your first call, if you get to speak to anyone at all.
Can’t we just forego the $10 refund? Ah, nice try. The IRS will not process the return (not just the refund check) until they verify the decedent’s identity. When a return is not processed, you can’t get confirmation of the final balance and therefore the final release from liability.
For example, when you call the IRS to verify, they ask if you are the decedent. Once you tell them you are the executor, it heads downhill from there. It sounds absurd, but it happens.
The 1040 verification is a new procedure, so this is a heads up for those facing a new estate. For those who have been working on an estate for a while, this could be a reason why the estate is now dragging on. When we say that we’re waiting along with you, we mean it. It’s an uphill backwards in the snow with no shoes kind of battle.
Probate
Check out my book, “How Probate Works,” and when you get to the chapter on delays, just add on more time. Unfortunately, that’s the way things are right now.
Request your free consultation
New Client v3 Free Probate Chapter
"*" indicates required fields
Sign-up for your free consultation using the form above, and I’ll be happy to email you a free chapter from Anthony’s best-selling book “How Probate Works.”
https://anthonyspark.com/wp-content/uploads/2023/02/E309-Limited-Powers-of-Attorney-for-Solo-Agers.jpg10801920Anthony Parkhttps://anthonyspark.com/wp-content/uploads/2015/10/logo-600.pngAnthony Park2023-03-15 07:00:442025-03-07 10:55:06E309 Limited Powers of Attorney for Solo Agers
How do you find a trustworthy fiduciary to make end of life decisions for you if you’re a solo ager? We get these questions often from our solo ager clients and followers:
“What provisions may be made if someone has no healthcare proxy?“
“When there is no one to take care of you as you age and you become ill, how can you ever find a fiduciary you can trust?”
We’ll review the problem, the lack of options, and if/when we’re able to help.
Solo agers’ problem
This end-of-life fiduciary problem is very similar to the executor problem, but more intimate.
Typically, solo agers do not have the traditional spouse or adult kids to fill the role. Some solo agers don’t want to burden (or are not comfortable asking) more distant relatives or friends to fill the role. An end-of-life fiduciary is not just a money or estate administration role, but rather extremely personal medical role. This means asking someone to make important end-of-life decisions for you and even be present at your death bed.
The bottom line is that you do NOT want a random court-appointed stranger to fill this role. A court-appointed fiduciary wouldn’t know you or your wishes at all.
Not many options
With executors, you have the option of choosing professional executors , as well as banks, trust companies, and in some states, there are certified professional executors. There is a small, but developed industry around professional executorship. But there are far fewer options for someone to be your hired health care proxy/agent.
In the case where a health care agent is hired, it is usually an attorney. This isn’t always a great option either. One of our followers said that she talked to an attorney and didn’t feel comfortable with her because all she talked about was the hourly fee. The attorney quoted over $800.00 just to “sign her up.”
Another said that the attorney “refused to have an initial meeting with me because she’s a ‘busy person’ and I’d have to hire her before she’d see me.”
Obviously, an attorney won’t provide these services for free, but the attorneys can be more tactful about it. For example, when we are asked to serve as a professional executor, we meet with the person to make sure we are a good fit. It’s hard to imagine someone would want name a health care agent without meeting them first.
How (and when) we‘ll be your health care proxy
We do not accept this role capriciously. I won’t do it unless I am your nominated executor/trustee or otherwise known you for at least several years.
Again, I want to make sure we have a good working relationship. This includes annual calls and check-ins (which we have discussed in other episodes). I want to be sure that I have a directional sense of your personality and wishes before I commit to making medical decisions. When the end-of-life period comes, it is a stressful time both for the client and me. I need to feel confident I can faithfully carry out your wishes.
My book, “The Solo Ager Estate Plan,” can help you prepare for end-of-life decisions. Click the link below to receive a free copy.
As always, keep your questions coming!
Free copy of “The Solo Ager Estate Plan”
Complete this form to receive your complimentary copy of Anthony’s Amazon best-seller, “The Solo Ager Estate Plan”
https://anthonyspark.com/wp-content/uploads/2023/02/E307-End-of-Life-Decisions-for-Solo-Agers.jpg10801920Anthony Parkhttps://anthonyspark.com/wp-content/uploads/2015/10/logo-600.pngAnthony Park2023-03-01 07:00:012023-02-27 17:37:40E307 End of Life Decisions for Solo Agers
What information are heirs entitled to, and how often can they request it? There is a delicate balance for executors to keep heirs in the loop without draining their time or estate resources in constantly responding to inquiries.
https://anthonyspark.com/wp-content/uploads/2023/01/E306-What-Information-Are-Heirs-Entitled-To.jpg10801920Anthony Parkhttps://anthonyspark.com/wp-content/uploads/2015/10/logo-600.pngAnthony Park2023-02-22 07:00:212025-03-28 07:08:10E306 What Information Are Heirs Entitled To?
https://anthonyspark.com/wp-content/uploads/2023/01/E305-Get-Your-Inheritance-Faster.jpg10801920Anthony Parkhttps://anthonyspark.com/wp-content/uploads/2015/10/logo-600.pngAnthony Park2023-02-15 07:00:282025-03-10 08:03:09E305 Get Your Inheritance Faster
E316 Estate Planning Dos and Don’t Bothers for Solo Agers
/in Solo Agers /by Anthony ParkSince we do so many probates, we see what parts of your planning actually helped with probate (dos), and which ones didn’t really matter (don’t bothers).
We are reviewing this info so that you don’t spend too much of your valuable time on planning that won’t help all that much. This is based on our annual executor check in calls, in which we hear from our clients who have well intended plans to gather information for us, should we need it. Which in most cases, we don’t. We are trying to save you stress and make the estate planning process a little bit easier.
Solo ager estate planning “dos”
Good and proper storage of original documents is important. It’s best to keep the original with your professional executor or other third party. Do not keep it yourself. This is for many reasons, such as access your home or apartment. Additionally, if a third party loses your will, probate could still move forward with a copy. However, if you lose it, it’s presumed that you intentionally destroyed it. Same goes for a safe deposit box – it’s hard to get access to this. It’s not impossible, but it’s very challenging.
Update your emergency contacts and be sure your executor is among those listed. An emergency contact list should be given to someone who will know of your death. This could be a building manager, doorman, neighbor, primary care physician, etc. You want to make sure they know who to notify in the event of your passing, including of importance, your executor and next of kin.
You should also review your beneficiary designations. We have talked before about why we don’t like beneficiary designations, but if you have them, make sure up to date. Or better yet, get rid of them. You certainly want to make sure they represent your wishes, and not your wishes 10 or 20 years ago.
“Don’t bothers” for your solo ager estate plan
Don’t use treasure maps. We have received detailed letters and emails with where the will is, where their important documents are, and even where their spare keys are. More often than not, the location of these items will change by the time of your passing. It may take us longer to use the treasure map to find them than it would to simply look on our own. Plus, it would be a waste of time searching if they have been moved. It’s not worth the amount of time you’d spend writing this type of “map.”
We don’t need contact lists. Typically, the lists we’ve seen include building managers, financial advisors, etc. These change often. We find when we make these calls, the people on the list no longer even work there.
Speaking of lists, detailed lists of assets which include balances and very specific info is also not needed. High level information is good enough (such as the name of financial institution). Balances change daily, so by the time you write it down, it’s likely changed.
Sort of helpful
There are a few things we would categorize as sort of helpful, but you don’t need to spend time on these, if you don’t want.
Password lists are one example of a sort of helpful thing to do. A list is nice to have, but post-death access to online accounts is not permitted, even if we have your password and log in. We simply can’t use those passwords. Email and social accounts may have some use to be able to access names and addresses, although again, we have rarely used these. Same with phone passwords. We seldom log into a decedent’s phone, and if we do, it’s only to find a contact name that we couldn’t find elsewhere.
A high level asset list is sort of helpful. It will give us a general sense of what you own to point us in the right direction. We would use this list along with the other items we collect (mail, past tax returns, bank statements, etc.) to be sure we aren’t missing something.
A list of contacts that are likely to not change is also sort of helpful. This includes next of kin, your primary care doctor, and possibly your CPA. It’s good info to know, but likely, we would get the newest information from the documents we have gathered.
Solo Ager Book
If you don’t already have my book, “The Solo Ager Estate Plan,” click the link below for a copy.
Free copy of “The Solo Ager Estate Plan”
Complete this form to receive your complimentary copy of Anthony’s Amazon best-seller, “The Solo Ager Estate Plan”
Solo Ager Book v1
"*" indicates required fields
How to Start Estate Planning if You Are Terminally Ill
5 Reasons to Hire a Professional Executor to Sell Probate Real Estate
How much does it cost to hire an executor?
E315 How to Probate a Hoarder Estate
/in New York Probate, Probate /by Anthony ParkAs you can imagine, probating a hoarder’s estate adds a few more complications. In this episode, we will talk about how to deal with some of the main challenges.
E314 Nonprofessional Executors Don’t Get Paid
/in New York Professional Executor, Professional executor /by Anthony ParkCould you imagine doing a ton of work and not getting paid? It’s frustrating, but it happens. One of the drawbacks of nonprofessional executors is they are more likely to lose their executor fee, despite doing months, even years, of work for the estate.
E312 Why Beneficiary Designations Are Bad
/in Solo Agers /by Anthony ParkIt’s understandable that beneficiary designations seem like an excellent and easy estate planning tool. But from our experience, when someone actually dies, beneficiary designations are often bad news.
E311 The Latest Probate Tax Delay is 1040 Verification
/in Probate /by Anthony ParkTax clearance is taking even longer lately because of a new twist: 1040 verification. Everyone agrees it’s important to keep the tax bogeyman satisfied, but all these layers of delays are frustrating our clients and us. Below we’ll explain what’s happening here.
What is tax clearance and why does it take so long?
The executor needs to make sure that the IRS agrees no more taxes are due. This is important because the executor is personally liable for unpaid taxes. If the executor makes distributions to the heirs and the heirs sign indemnity agreements, then the heirs will be liable for taxes.
Maybe you’re thinking that your loved one’s estate was so small that there’s no estate tax. We’re not just talking about estate tax, but final 1040s, payroll, small business, retirement payouts, and just about everything else. Still don’t think it applies? You’d be surprised how complex someone’s tax situation can be. The IRS is pretty good at combing through the past six years to make sure they get everything owed to them (it’s the IRS’s last chance to be paid).
Why does it take so long, generally? As with any bureaucracy, it takes the executor a while to gather all information and past returns. (Try getting a tax transcript quickly from the IRS!). The IRS will also take their time since this is their last bite at the apple. And lately, everything related to the IRS takes way longer due to unprecedented delays and backlog. As you recall, the lock-downs were in 2020. It’s mind boggling how the IRS is so backed up three years later.
Now the IRS wants verification
If the estate is owed a refund on any of its final returns, the IRS now requires identify verification of the decedent. It’s understandable that the IRS is taking these measures, since scammers posing as IRS agents have become ubiquitous. But the result is that estates are getting stuck for more weeks or months because of $10 refund.
Why does IRS verification cause longer delays?
It’s because all bureaucracies are slow, and are even slower if your situation is not on their main “script.” For example, if you go to the bank to open a personal checking account, it’s easy for the tellers who open checking accounts several times a day. But if you have a non-traditional request, such as closing a decedent’s account, the teller probably has to go ask a manager for help. When you go off-script from procedures that an employee is used to, then things can go haywire.
Whether it’s multinational banks or the largest government in the world (US), these bureaucracies struggle with edge case situations. It’s very hard to find a competent banker, branch manager, or IRS agent who understands what an executor is, let alone the correct procedure for dealing with a deceased customer or taxpayer. You’re pretty lucky if you speak to a knowledgeable agent on your first call, if you get to speak to anyone at all.
Can’t we just forego the $10 refund? Ah, nice try. The IRS will not process the return (not just the refund check) until they verify the decedent’s identity. When a return is not processed, you can’t get confirmation of the final balance and therefore the final release from liability.
For example, when you call the IRS to verify, they ask if you are the decedent. Once you tell them you are the executor, it heads downhill from there. It sounds absurd, but it happens.
The 1040 verification is a new procedure, so this is a heads up for those facing a new estate. For those who have been working on an estate for a while, this could be a reason why the estate is now dragging on. When we say that we’re waiting along with you, we mean it. It’s an uphill backwards in the snow with no shoes kind of battle.
Probate
Check out my book, “How Probate Works,” and when you get to the chapter on delays, just add on more time. Unfortunately, that’s the way things are right now.
Request your free consultation
New Client v3 Free Probate Chapter
"*" indicates required fields
Sign-up for your free consultation using the form above, and I’ll be happy to email you a free chapter from Anthony’s best-selling book “How Probate Works.”
Inheriting a House in New York With Siblings: What Are Your Options?
Can You Sell a House Before Probate Is Complete in New York?
NY Probate With No Will: What Happens to the House?
E310 How to Sell Cash-Poor Probate Co-ops
/in New York Probate, New York Probate Real Estate, Probate Real Estate /by Anthony ParkHow do you sell a probate co-op, when the estate has no other cash?
E309 Limited Powers of Attorney for Solo Agers
/in Solo Agers /by Anthony ParkIf you’re a solo ager and you must use a power of attorney (POA), make it as limited as possible.
E307 End of Life Decisions for Solo Agers
/in Solo Agers /by Anthony ParkHow do you find a trustworthy fiduciary to make end of life decisions for you if you’re a solo ager? We get these questions often from our solo ager clients and followers:
“What provisions may be made if someone has no healthcare proxy?“
“When there is no one to take care of you as you age and you become ill, how can you ever find a fiduciary you can trust?”
We’ll review the problem, the lack of options, and if/when we’re able to help.
Solo agers’ problem
This end-of-life fiduciary problem is very similar to the executor problem, but more intimate.
Typically, solo agers do not have the traditional spouse or adult kids to fill the role. Some solo agers don’t want to burden (or are not comfortable asking) more distant relatives or friends to fill the role. An end-of-life fiduciary is not just a money or estate administration role, but rather extremely personal medical role. This means asking someone to make important end-of-life decisions for you and even be present at your death bed.
The bottom line is that you do NOT want a random court-appointed stranger to fill this role. A court-appointed fiduciary wouldn’t know you or your wishes at all.
Not many options
With executors, you have the option of choosing professional executors , as well as banks, trust companies, and in some states, there are certified professional executors. There is a small, but developed industry around professional executorship. But there are far fewer options for someone to be your hired health care proxy/agent.
In the case where a health care agent is hired, it is usually an attorney. This isn’t always a great option either. One of our followers said that she talked to an attorney and didn’t feel comfortable with her because all she talked about was the hourly fee. The attorney quoted over $800.00 just to “sign her up.”
Another said that the attorney “refused to have an initial meeting with me because she’s a ‘busy person’ and I’d have to hire her before she’d see me.”
Obviously, an attorney won’t provide these services for free, but the attorneys can be more tactful about it. For example, when we are asked to serve as a professional executor, we meet with the person to make sure we are a good fit. It’s hard to imagine someone would want name a health care agent without meeting them first.
How (and when) we‘ll be your health care proxy
We do not accept this role capriciously. I won’t do it unless I am your nominated executor/trustee or otherwise known you for at least several years.
Again, I want to make sure we have a good working relationship. This includes annual calls and check-ins (which we have discussed in other episodes). I want to be sure that I have a directional sense of your personality and wishes before I commit to making medical decisions. When the end-of-life period comes, it is a stressful time both for the client and me. I need to feel confident I can faithfully carry out your wishes.
My book, “The Solo Ager Estate Plan,” can help you prepare for end-of-life decisions. Click the link below to receive a free copy.
As always, keep your questions coming!
Free copy of “The Solo Ager Estate Plan”
Complete this form to receive your complimentary copy of Anthony’s Amazon best-seller, “The Solo Ager Estate Plan”
Solo Ager Book v1
"*" indicates required fields
E338 Should I Sell My Home Before I Die?
E334 Why Hire a Professional Trustee?
E329 Professional Executor for Physician-Assisted Dying
E306 What Information Are Heirs Entitled To?
/in Professional executor /by Anthony ParkWhat information are heirs entitled to, and how often can they request it? There is a delicate balance for executors to keep heirs in the loop without draining their time or estate resources in constantly responding to inquiries.
E305 Get Your Inheritance Faster
/in Probate /by Anthony ParkHeirs often want to know if there is any way to get their inheritance faster.