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Month: March 2018

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When a Relative Passes Away Without a Will

MP900442417[1]If a close loved one has recently passed away without having a will, you need to know what to do so that the estate can be properly distributed.

Every day people in the U.S. pass away without any form of estate plan. Surveys show that approximately half of Americans do not even have a will when they pass away.

When one of those decedents is a close relative of yours, you might be the person the family thinks should be in charge of handling everything and making sure the decedent’s assets are distributed to other family members.

However, that is not a simple process, as the Napa Valley Register discussed in "Mom died with no will. Now what?"

You cannot just start handing property out to other people. This is especially true if the property in question is something like real estate or a car. You need the necessary legal authority to transfer those assets.

For that authority you will need to go to probate court and ask a judge to appoint you as the personal representative of the estate. Once you secure that designation, you have the legal authority to determine what assets comprise the decedent’s estate and then distribute them.

 However, you cannot distribute assets anyway you wish. Your state's laws of intestate succession will determine to whom the assets should be distributed.

That sounds complicated and it is. The first step you should take if you find yourself in this position, is to hire an estate attorney who can assist you.

Reference: Napa Valley Register (Feb. 1, 2018) "Mom died with no will. Now what?"

 

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Trusts May Be The Answer: When Minors are Your Heirs

Bigstock-Extended-Family-Outside-Modern-13915094[1]If you think it is likely your heirs will be minors would when you pass away, it is best to do so differently than you would leave assets for adults.

If you have minor children, grandchildren or other relatives you want to include in your estate plan you should do so, because if you leave assets only to their parents, they might spend everything before the minors can inherit it.

You could also simply write provisions in your will, so the minors receive certain assets or a portion of your estate. However, that does not work in the same way leaving assets in a will to adults does.  The probate court will have to hold hearings and determine who the best adult is to be in charge of handling those assets on behalf of the minors, until they come of age.

This can be inefficient and, unless you have left special instructions in the will, the person appointed by the court might not be the same person you would have appointed. There is a better way to leave assets to minors as the Times Herald-Record discussed in “Proper legal planning for minor beneficiaries.”

The better option is to create a trust and to fund the trust with the assets you would like to leave for the minors. You can appoint a trustee of your own choosing to administer the assets for the benefit of the minors. You also can leave instructions about how and when the assets are to be distributed for the children. That does not have to be the moment they reach the age of majority.

If you would like to leave part of your estate to minors, then talk to an estate planning attorney about creating a trust to do so.

Reference: Times Herald-Record (Feb. 1, 2018) “Proper legal planning for minor beneficiaries.”