Complicated Estate Finances

[kib]

My father passed away last Sunday. He was a good man and he is loved and missed. My mother is in deep grief and not making too much sense; for the time being my feelings seem to be in limbo as I try to sort out their affairs and take care of arrangements. Thankfully most of the immediate funereal decisions have already been made, but the details of the estate itself are boggling my mind.

I have a really elemental question here. I'm not really comfortable with any of my parents' financial advisors. One is a brokerage company that seems intent on syphoning off as much income from our estate as possible, and the other company is the creator of a Living Trust that seems like a mill operation - they set up the legal paperwork but don't know anything about our specific family assets. Figuring out the IRA tax implications and titling logistics within the Trust framework is a nightmare. Mom also has an attorney who I like even less, I don't feel like he's got a lot of financial acumen. The one thing they didn't have was an accountant, which is a great shame because some of these assets are godawful complicated. My Dad always did his own accounting and taxes. My mother is completely clueless and I'm realizing that while I can probably prepare her taxes going forward, I certainly don't know the ins and outs of these investments yet, or a checklist of what needs to happen right now.

So ... what sort of a person or firm do I look toward for advice? What is this firm/person called? What is the best way to get reliable advice without losing half the estate? Sigh...

[Birdie]

Hi Kib. Please accept my condolences on the loss of your father.

Before you do anything, get a copy of the current Trust and read it. It may be that your parents set it up so everything goes to your mother and accounts only need to be retitled. Nothing would really change hands. You don't need to use the attorney that wrote the trust, but you can take it to any attorney to get advise if anything is needed.

You might help her by finding all their assets and making a list. Hopefully Dad kept copies of previous tax returns which should list any income from the different sources.

I took a class yesterday on how to Execute a trust which is why I feel confident to makes these suggestions. I also have a book called the Executor's Guide by Nolo Press that I bought last year. My Dad is 96 and I want to be prepared when his time comes.

Good luck and hugs. I'm so sorry about your Dad.

[iris lilies]

Kib, I am sorry to hear about your father's death.
I dont have any good advice, but you seem to be on the right track with looking for an accountant.

i got only a whiff of the complexity of IRA accounts in an estate when our broker got all huffy-puffy about our work toward a trust, but I do not want to complicate my life with more ****ing financial transactions. I will be dead and do not care that I may not be maximizing my assets in death. You are, of course, in a different place in life.

[SteveinMN]

I'm sorry about your father's passing, as well, kib.

I would look for an accountant that specializes in estate planning -- or maybe a lawyer who specializes in estate planning. Either of them would be far more familiar with the setup and provisions of your parents' investments and, since they would not be paid by the financial firms, could look out for whatever direction you and your mother want to go.

[freshstart]

no advice, but I am sorry you lost your dad

[Simplemind]

I'm sorry about your dad and your current state of affairs. I have just come off four years of getting my parents estate in order after my mom's death. They have a trust but the attorney who drew it up (who I didn't care for) is no longer in practice. I chose to go to an elder law attorney for review to make sure I understood my role as trustee. It was so convoluted he sent me to have it reviewed by another attorney that specializes in trusts.
I'm glad I started there because it gave me my marching orders and the direction to march. I have always trusted their financial advisor and use him myself. Taxes are the big one. Make sure your tax attorney understands the trust and how to do the return. Ours said she understood it yet still made a mistake in the amount my dad had to pay on property we sold after mom's death. He grossly overpaid and it also lowered his monthly SS significantly. We are now waiting for a refund but lost the interest on that money for over a year.
So I would say, attorney to comb over the trust and then a good tax attorney.

[Rogar]

kib, I'm sorry about your father. Hopefully there will be a light at the end of the estate tunnel once things have settled in.

I was fortunate in similar circumstances to have both and accountant and a lawyer that I trusted and could talk about a variety of things with. I think most of the quandaries you mentioned could have been fairly discussed with either of them and I would have gotten good advice. Maybe it is a matter of just finding the right person. My advisers came about through references from friends and family.

[bae]

The Nolo Press book has been invaluable to me recently, as my MIL passed away around Christmas. My wife, an attorney who is licensed to practice in my MIL's state, found a great attorney to help with all the trust/tax complexities, which was quite wise of her.

[catherine]

No advice, just sincere condolences, kib. I am very sorry for your loss, and wish you and your mother peace.

[razz]

Condolences and good thoughts that the path opens that is right for you to follow for a good resolution of the challenges.

[Gardenarian]

Hi Kib - I was poking into this last week and found that Nolo Press has an online service where they will recommend lawyers. We are pleased and impressed with the firm they recommended.

I'm so sorry about your father. I hope your mother gets through this okay.

[Miss Cellane]

I'm so sorry for your loss.

When my father was planning things, he used the services of a CPA who is also a lawyer, who did a great job.

[TVRodriguez]

I'm sorry for your loss. I am in agreement with those who suggest talking with an experienced trusts & estates attorney as well as a CPA who is used to dealing with estates and trusts. You may have to pay for the consultation, but even one visit should give you lots of information. If you go, take notes so you don't forget what you learn. Even if you keep working with an attorney and/or CPA, it's helpful to have your own notes so you can refer back and ask them "where are we on xxx issue?"

[beckyliz]

Take your mom and go visit a local bank that has a good trust department. They should take a look at everything (trust document, investments, taxes, etc.) and help you sort things out or at the least, give you ideas and suggestions. They will probably want your business, and it may be a good idea to bring in experts. Disclaimer: I work in a bank trust department and we step in all the time in situations like this. We know the good attorneys and accountants in town. Yes, it may cost some money, but in this case, it may save a lot more. The assets your dad owned should get a step up in basis as of his date of death (I'm assuming you're in the U.S. for this). That will help with taxes if anything is sold. Shop around, ask friends.

Find out who is successor trustee. If it's you or your mom, you can hire the bank to help with just the asset management part of the picture. You may even have the power under the trust document to name the bank as a co-trustee or successor if neither of you want that job.

[bicyclist]

I am sorry to read of your loss. I think that is important to find an experienced trust attorney who can do retitle accounts and knows accountants to help to file estate and personal tax returns. It's not clear who is going to be responsible from what you wrote but this is best done as a do it yourself project. An estate tax return will be needed within a year. Whether the estate owes estate taxes and how much depends on the locality, state and federal rules and varies. I believe a couple has to have assets of $10,600,000 to owe federal estate taxes. Not too many people fall into that category (less than 1% of estates) but if you do, it's well worth the services of a person or firm who specializes in estates.
Ask friends and relatives whether they have experiences with similar situations. Remember this is not a brief event but a relationship that may go on for quite awhile. You want someone who is trustworthy and has a track record. Bicyclist