I think my sister is wrong!

[always quiet]

This is, in a nutshell (and what I can remember off the top of my head) that my dad has specified in his will.

1. All final expenses, both medical and funeral expenses are to come out of the principal of his estate.
2. The house and all household belongings, including any insurance on said items (like maintenace contracts) are passed to me.
3. All "taxes that become due and payable" by his passing comes out of his estate as if they were "his own" (interitence taxes)
4. $5000 to 4 grandchildren
5. Remainder of the estate to my sister. (we are talking over 100,000!)

I really don't know what else he should specify. He has told his lawyers what he wants to happen upon his passing (like who gets what) so it won't be like his lawyer isn't also aware.

I truly hope that I don't need to think about any of this for many many more years to come. I laughing tell him he's not allowed to die, I'm too young to become an orphan!!

 

[mcnuss]

Originally posted by always quiet
This is, in a nutshell (and what I can remember off the top of my head) that my dad has specified in his will.

1. All final expenses, both medical and funeral expenses are to come out of the principal of his estate.
2. The house and all household belongings, including any insurance on said items (like maintenace contracts) are passed to me.
3. All "taxes that become due and payable" by his passing comes out of his estate as if they were "his own" (interitence taxes)
4. $5000 to 4 grandchildren
5. Remainder of the estate to my sister. (we are talking over 100,000!)

I really don't know what else he should specify. He has told his lawyers what he wants to happen upon his passing (like who gets what) so it won't be like his lawyer isn't also aware.

I truly hope that I don't need to think about any of this for many many more years to come. I laughing tell him he's not allowed to die, I'm too young to become an orphan!!

My best advice to you is:

1. As executrix, you should have a copy of your dad's will. Get it and read it over.
2. You need to also read that POA. Depending on what kind of POA he executed, should he become incapicitated, your evil sister could have the authority to sell the house. I am not kidding! Some POA's give the person the right to buy & sell real estate. If this is a "Durable Power of Attorney for Health Care", you do not need to worry.
3. I like the idea of your dad quit claiming the house to you now. It's your best protection.
4. LIfe insurance passes outside probate, it does not need to be referenced in the will. However, if you are the sole benficiary, this needs to be stated, otherwise it will be go to both living heirs in equal portion or into the estate, depending on how the policy was written. As executirx, you should have a copy of this, too.
5. If there is anything at all ambiguous about the paperwork, have your dad see a lawyer, and make sure he goes alone. This way you have protected yourself from a claim by your sister that you unduly influenced the decisions your dad made.

Last, with $100k, there will be no estate tax. I would also suggest seeing a lawyer about putting that money into a trust so that it will pass outside of probate (he could also put the house into a trust if he does not want to quitclaim it). If he has no debts, this will make that process a snap.

Depending on where you live, the lawyer's fees will not be high -- my guesstimate would be about 4-5 hours of billable time (most of this stuff is done by a paralegal anyway). It's worth $500-600 for you to get this in order.

My DH and I were executors of his parents' estates, and I did my grandfather's and will eventually do my parents. The key is to have all the documents where you can find them. You won't be prepared when *it* happens so a little bit of organization ahead of time will make your life easier during that traumatic period.

 

[always quiet]

I have copies of all my dad's important papers, be it something as simple as a paid receipt to his will and power of attorney papers. There is nothing about his financial situation that I don't know. I'll have to look over the power of attorney paper and see if it mentions anything about the house. I know it doesn't specifically mention anything about the house, but you never know! There might be a clause in there that I missed.

The life insurance is a 50/50 split (he even called them the other day...just wanted to be sure that he changed it after my sister passed away in 2000). This is what my sister wants to use to pay 'final expenses'. I don't understand how this would be done because his will clearly states that is to be paid first. Maybe she would have me sign an IOU! (As I've said, I have no problem with this...I would of given her half IF the expenses solely came out of the cash. To make such a fuss about it now just creeps me out!).

 

[mcnuss]

The thing you want to review in the POA is if it is "general" or "specific". If it's general, then the POA can almost always make r/e transactions. If it's specific, say for health care, then she wouldn't be able to. If in doubt, call your dad's lawyer and ask him/her (state law on this varies). You should not be billed for this short question.

The life insurance won't pay out in time to pay for the funeral...they usually want their money right away, unless you charge it or something. The idea of a pre-paid is a good one; it's usually cheaper. My folks did this, as did my grandfather. We sure would have loved it if my in-laws had, not for financial reasons but to know what they wanted (they died young, so unlike you, we had never talked about it).

Finally, if your sister persists in badgering you and your dad about this, might I suggest a couple of sessions with a family therapist? It might do all of you a world of good, not to mention, shut her up!!!