QUESTION
Will I need to file anything when I pay my siblings their share?
Asked on Nov 29th, 2013 on Estate Planning - Nevada
More details to this question:
My father isn't doing so well and he wanted to put my name on his saving accounts so I can help take care of his bills. He has quite a bit of money in these accounts. I am executor of his will and power of attorney. Upon his death he wants me to split everything up evenly between my siblings (that is stated on the will as well) which I will do. My siblings are aware that I am on his accounts. I plan on taking care of his wishes and splitting up his assets with my siblings.
14 ANSWERS
Probate Attorney serving New Orleans, LA
at
James G. Maguire
Update Your Profile
Document everything about the assets, and have the heirs sign receipts for whatever they receive, including an acknowledgement that this satisfies any claims they have against his estate.
Answered on Dec 03rd, 2013 at 5:33 PM
Neal Michael Rimer
Your father and you are doing this all wrong. If you are made an "owner" of the account along with your father, then your transferring assets to your siblings after your fathers death is a gift from you to your siblings. You will pay a gift tax or erode your unified credit available to you during life and upon your death. If you are just a signature on the account, then that is fine. Upon your fathers death, you will probate all his assets and upon court order then be able to distribute the assets from your fathers estate to yourself and your siblings. The gift will then be from your father and not from you. As an alternative, to avoid probate, you can set up multiple accounts that are pay on death accounts, joint tenancy accounts or put all the assets into a living trust. I suggest you consult with an estate planning attorney and get a game plan down to keep costs low and accomplish your dad's goals. Should you have any questions or wish to discuss this matter further, please feel free to contact me.
Answered on Dec 03rd, 2013 at 4:54 PM
Edwin K. Niles
If there are no assets left in Dad?s name alone, there is no need to open probate; it can all be handled privately.
Answered on Dec 03rd, 2013 at 4:54 PM
Your authority under the power of attorney ends if he dies. Thereafter, you will need probate court authority as executor of the estate to make distributions in accordance with the will.
Answered on Dec 03rd, 2013 at 4:53 PM
Trusts Attorney serving Sacramento, CA
at
Law Office of Victor Waid
Update Your Profile
You will need to file the will with the probate court and commence probate proceedings upon father's death. Suggest you obtain services of a probate attorney to represent you as the executor of the estate, so as to keep everyone informed; attorney is paid out of the assets of the estate. That way, in the future if someone complains like a creditor or a family member, then you will have a complete record, of which all persons entitled to receive a share, is noticed all the way through the whole proceeding, and you are protected from any potential lawsuit by an alleged beneficiary or creditor.
Answered on Dec 03rd, 2013 at 4:53 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
There may be gift tax issues as the joint accounts will be yours on his death. See an estate planning attorney to understand the other options.
Answered on Dec 03rd, 2013 at 4:52 PM
Thomas Edward Gates
You will need to probate his estate.
Answered on Dec 03rd, 2013 at 4:52 PM
The will should be filed with the probate court and you should officially be named executor of the estate. Each sibling should sign off when he or she receives the inheritance and you need to file a final accounting with the court.
Answered on Dec 03rd, 2013 at 4:51 PM
2 Awards
If you're using a POA to access his accounts, be aware that the POA dies when the power grantor dies. You can't use the POA to access his accounts post-death. Also, I'd keep meticulous records about what you're paying and why. I've seen way too many families split up over accusations that the person helping with the bills overreached, used the money inappropriately, spent too much, etc. You're likely going to have to probate the will. I don't know if he has other property or assets/liabilities.
Answered on Dec 02nd, 2013 at 7:12 PM
Probate Attorney serving Newport, OR
at
Minor, Bandonis & Haggerty P.C.
Update Your Profile
Don't become a joint owner. It is unnecessary and confusing. When your father passes away, you petition to be named personal representative. Do NOT pay any bills (the funeral home will insist on being paid) until the claims period has passed. Work with an attorney experienced with doing probate. There is a right way and a wrong way to do things. Do things the right way, and the estate will be settled properly and your father's affairs wound up cleanly. You do NOT need to start paying bills as soon as your dad passes away. You should follow the proper process for claims.
Answered on Dec 02nd, 2013 at 7:12 PM
Business Planning Attorney serving Livonia, MI
at
Frederick & Frederick Attorneys at Law
Update Your Profile
If there is more than $14,000 given to any person in a single year, you would need to file a gift tax return with the IRS. Unless the amounts in question are over $5,250,000, then there would be no actual tax owed by anybody. It still needs to be reported as a gift, however. You would file a Form 709.
Answered on Dec 02nd, 2013 at 7:11 PM
If the assets are large enough to require probate then you will need to file a court petition, file receipts for the distributions and account to the court and the beneficiaries for all estate assets. You will need to obtain counsel to do all of this. If the estate is too small to require the filing of a court case, you should nevertheless get each beneficiary to sign a receipt acknowledging they received their share, as protection for you against any complaints brought in the future.
Answered on Dec 02nd, 2013 at 7:11 PM
3 Awards
There can be tax implications, etc. I urge you and or your father to speak with counsel about options. The approach being considered may not be best.
Answered on Dec 02nd, 2013 at 7:11 PM
2 Awards
You should have them sign receipts.
Answered on Dec 02nd, 2013 at 7:11 PM