E236 Executor as House Flipper
Sometimes, as professional executor, I must be a (reluctant) house flipper.
Articles and audio on New York Professional Executor
E231 Emotional Distress During Probate (Case Study)
Death, family, and money are always an emotional mix. And those emotions can lead to headaches and expensive problems during probate.
E218 Bitcoin Letter of Instruction to Heirs
Every bitcoin estate plan must include a simple, easy-to-understand letter of instruction to your heirs or executor. If you don’t, all of your hard-hoarded bitcoin may disappear.
E207 Hire a Professional Executor for Your Insolvent Estate
Going through probate is a grueling 1-to-2-year process. Would you want to go through all that if you don’t even get anything out of it?
If you think the estate may be insolvent, consider hiring a professional executor.
What’s an Insolvent Estate?
An insolvent estate is when the decedent’s debts are greater than the assets. For example, the mortgage, credit card debt, and medical bills are greater than the value of the house and bank accounts.
There are also situations where the estate is close to being insolvent and you don’t realize it. Examples of this are Medicare clawback and unseen taxes. If you received medical care paid for by the government, the government will want the money back when you die. This could leave your estate with a large bill. Additionally, the IRS will look over your taxes carefully to be sure they didn’t miss anything.
Who Must Probate the Estate?
Many family members and heirs ask: am I required to be executor? The answer is no! You can decline or not act at all. Although, some may feel like they are dishonoring their deceased loved one by leaving the estate as a mess.
If you think the decedent is close to having an insolvent estate, you have options.
One not-so-great option is to let the state take over. There’s a state office (sort of like the public defender, but called a public administrator) that can step in. But, the interest in the estate and the incentives might not be the same as a person who you hire to help.
Instead, Hire a Professional Executor for the Estate
A better option is hiring a professional executor. You won’t have to do the stressful work yourself and you don’t have to feel bad about abandoning your loved one’s estate to the public administrator.
Even if the estate is NOT insolvent, you now have a relationship with the hired executor. This helps to make sure you get your inheritance. If the estate IS insolvent, then you can relax knowing that a professional is there to wrap up the estate.
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
E201 Should I Name a Trust as Beneficiary of My Accounts?
Another question that we receive often is “should I name a trust as beneficiary of my estate?” In a recent case, Rhonda reached out to us, because she wanted the benefits of a trust (avoid probate, reduce chance of a “will contest,” etc.), but she was not quite ready for the headache of a full-blown trust setup. In her particular situation, naming her trust as beneficiary makes sense. If you are considering this doing this, here are a few things you should consider.
E190 When Does the Executor Tell the Beneficiaries?
When does the executor tell the beneficiaries? Once the court process starts, which is usually shortly after death.
E189 Can an Executor be Out-of-State?
No, it’s not a good idea to have an out-of-state executor. Although it’s technically legally allowed, in reality an out-of-state executor causes tons of problems.
E185 How to Name a Bank as Your Executor
Want a professional executor, but prefer an institution such as a bank or trust company? Here’s what to expect.
E184 Why is Being an Executor Difficult? The Statistics
Here are the results of a survey and statistics to illustrate why folks think being an executor is so difficult.
E183 Did Her Estate Plan Work? A Solo Ager Example
Let’s take a look at a real world example of whether a Solo Ager’s estate plan worked towards the end of her life.
Ms.H’s Plan: DIY Will + Professional Executor
Background
Ms. H is a solo ager (unmarried, no kids, over 60 years old) who’s been estranged from her closest relatives (siblings and nieces and nephews) for decades.
She made a do-it-yourself will leaving everything to charity. Thankfully, she hired a lawyer to supervise her will signing.
Ms. H named me her professional executor in her will, and over the past 10 years her wishes have remained largely the same.
Recently
Sadly, age has caught up with Ms. H, and she was recently hospitalized for lack of self-care. Her doctors agree they cannot discharge her to live alone anymore, so we’re making arrangements for Ms. H to move into assisted living.
She’s understandably anxious about all this, and even contacted her long-estranged niece and asked her to visit.
What Went Right with Her Plan?
Ms. H avoided a few problems by naming me her professional executor.
First, she won’t have to deal with any “court-appointed strangers,” such as a guardian. Instead, she can turn to me, someone she’s chosen and has a relationship with.
Second, she felt comfortable reaching out to estranged family, without fear they’d try to sneak into her inheritance. Since Ms. H already has a will and an attorney-executor standing by, her niece has focused solely on reconnecting with Ms. H emotional, not financially.
And lastly, Ms. H’s doctors, hospitals, and social worker have all been grateful to have me as a main point of contact for her care.
What Went Wrong with Her Plan?
Her plan does have a couple of weaknesses.
Since an executor steps in after death, I don’t have authority to help Ms. H now. For example, I can’t help make financial arrangements for her to access a better assisted living. She much choose among the options thru Medicare.
Also, if unscrupulous and aggressive family comes out of the woodwork, I have fewer tools to fend them off. We’d have to battle in court, which could waste Ms. H’s time and money, and cause her stress.
Why a Trust Could Have Been Better
If Ms. H had made me trustee, I’d be better to avoid any court-appointed strangers for her. And more ability to upgrade her care, and deter unwanted family, without having to go to court.
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
Recent Posts
