Spin-Off of Inheritance Message Thread: Do Your Heirs Know What Your Intentions Are?

[CdnCarrie]

My husband and I are each other's heirs for everything when one predeceases and, of course we both know all the details (or have access tot he details).

Isn’t that just marital property? Here unless it’s something like specific like an insurance policy with a stated beneficiary or perhaps property bought prior to a second marriage all assets would automatically be joint assets. Your spouse would not be “an heir” as it’s joint property.

 

[china mom]

Isn’t that just marital property? Here unless it’s something like specific like an insurance policy with a stated beneficiary or perhaps property bought prior to a second marriage all assets would automatically be joint assets. Your spouse would not be “an heir” as it’s joint property.

Yes and no. If you die without a will in Maryland, any assets that are not held jointly will be disbursed according to law:

"Children in Maryland Inheritance Law
If you have children who are minors, your spouse will inherit half of the intestate property and your children will inherit the other half. If you have no minor children, your spouse will inherit $15,000 of the intestate property and then half of the remaining property."

In my case, everything we own (houses, bank accounts etc.) is held in both our names with the exception of three cars. I negotiated the car deals and got the loans by myself so they ended up titled in my name alone. I learned my lesson after watching what happened with my fathers car so for the next car purchase, I made sure DH was on the title.

When my father passed, everything was in both his and Mom's names except the car and an acre of land in Florida. Mom had to open an estate and probate the will to have the car put in her name (so that she could renew the registration and eventually sell it). She forgot about he Florida property so I had to re-open his estate years later, have her estate inherit the land and then purchase the land from her estate.

I know a lot of couples who keep their finances separate. They should make sure that they have a pay on death beneficiary noted on their accounts or have a will.... unless they want the state to disperse as noted above.

 

[CdnCarrie]

Yes and no. If you die without a will in Maryland, any assets that are not held jointly will be disbursed according to law:

"Children in Maryland Inheritance Law
If you have children who are minors, your spouse will inherit half of the intestate property and your children will inherit the other half. If you have no minor children, your spouse will inherit $15,000 of the intestate property and then half of the remaining property."

In my case, everything we own (houses, bank accounts etc.) is held in both our names with the exception of three cars. I negotiated the car deals and got the loans by myself so they ended up titled in my name alone. I learned my lesson after watching what happened with my fathers car so for the next car purchase, I made sure DH was on the title.

When my father passed, everything was in both his and Mom's names except the car and an acre of land in Florida. Mom had to open an estate and probate the will to have the car put in her name (so that she could renew the registration and eventually sell it). She forgot about he Florida property so I had to re-open his estate years later, have her estate inherit the land and then purchase the land from her estate.

I know a lot of couples who keep their finances separate. They should make sure that they have a pay on death beneficiary noted on their accounts or have a will.... unless they want the state to disperse as noted above.

Probably varies between locations.

Here anything purchased during a marriage would be joint marital property. No need to will it to each other. In fact our will doesn’t even mention that - it just discusses both our deaths- assets go to our 2 children.

 

[china mom]

Probably varies between locations.

Here anything purchased during a marriage would be joint marital property. No need to will it to each other.

Would that also hold for money earned during the marriage? What about the couples who have separate bank accounts and who each have a specific set of bills they pay each month?

And there is an exception, at least in Maryland, involving inherited money and property. When my mother passed, I inherited some cash. If I kept it separate and never co-mingled funds, it would be considered my property, not marital property. Now, the minute I co-mingled funds, it does become joint property - and that is what I did because in my marriage, everything is "ours". But some blended families have a reason to keep assets separate. If they want their biological children to inherit differently from their step children, it gets complicated.

 

[John VN]

Would that also hold for money earned during the marriage? What about the couples who have separate bank accounts and who each have a specific set of bills they pay each month?

And there is an exception, at least in Maryland, involving inherited money and property. When my mother passed, I inherited some cash. If I kept it separate and never co-mingled funds, it would be considered my property, not marital property. Now, the minute I co-mingled funds, it does become joint property - and that is what I did because in my marriage, everything is "ours". But some blended families have a reason to keep assets separate. If they want their biological children to inherit differently from their step children, it gets complicated.

r.e. bold Our 50th anniversary is in 2 months. Before marrying I mentioned that since she was excellent with numbers and finances -- everything she made from working was hers and everything I made from working was hers, please keep the bills paid and do what you want with what's left.

 

[china mom]

r.e. bold Our 50th anniversary is in 2 months. Before marrying I mentioned that since she was excellent with numbers and finances -- everything she made from working was hers and everything I made from working was hers, please keep the bills paid and do what you want with what's left.

I like it! I tease DH that what I make is mine and what he makes is ours.

Our incomes go into our joint household accounts. For the first 22 yeas of marriage, he handled all of the bill paying but I spent as I pleased. Over the past couple of years, as I have begun to build our rental house empire, we have separated out business funds from household (all still in both our names) and I handle the business side while he handles household. This is mainly because I am an excel fiend and tracking income and expenses is fun for me.

Congrats on your Golden!!

 

[kdonnel]

I have let my wife and kids know that I hope they monetize my death. If they can sell my body either in parts or as a whole, legally or illegally, I am fine with whatever.

Ultimately I am dead and they are living. It is more important what they feel they need to do then any of my wishes.

As for money and assets, we have a will but have spoken directly with the children, well they are adults now.

 

[CdnCarrie]

Would that also hold for money earned during the marriage? What about the couples who have separate bank accounts and who each have a specific set of bills they pay each month?

And there is an exception, at least in Maryland, involving inherited money and property. When my mother passed, I inherited some cash. If I kept it separate and never co-mingled funds, it would be considered my property, not marital property. Now, the minute I co-mingled funds, it does become joint property - and that is what I did because in my marriage, everything is "ours". But some blended families have a reason to keep assets separate. If they want their biological children to inherit differently from their step children, it gets complicated.

Any money earned during a marriage is marital property. I think there is an exception with inherited property as well but don't know the ins and outs of it.
Blended family would need a prenuptional agreement to ensure that assets brought into a 2nd marriage are left to children.

 

[mrodgers]

Well many employers offer life insurance that is a couple times your annual pay, who is going to get that windfall?

It's 1x annual wage and certainly isn't something I would call a windfall, LOL. And they'll get the 401k which amounts now to about 2x annual wage. So they would each get a decent house down payment in this day and age, which still wouldn't bring the current cost of a house down to reasonably affordable mortgage level.

 

[DLgal]

It's 1x annual wage and certainly isn't something I would call a windfall, LOL. And they'll get the 401k which amounts now to about 2x annual wage. So they would each get a decent house down payment in this day and age, which still wouldn't bring the current cost of a house down to reasonably affordable mortgage level.

Yeah, we didn't even get the life insurance for my husband's new job. You have to pay for it. It's not free. And the amount wasn't even 1x his annual salary. It was only $100k. And it cost like $8 a month or something. Pass.

 

[mrodgers]

Yeah, we didn't even get the life insurance for my husband's new job. You have to pay for it. It's not free. And the amount wasn't even 1x his annual salary. It was only $100k. And it cost like $8 a month or something. Pass.

Only $100k, that's funny...

 

[CdnCarrie]

Yeah, we didn't even get the life insurance for my husband's new job. You have to pay for it. It's not free. And the amount wasn't even 1x his annual salary. It was only $100k. And it cost like $8 a month or something. Pass.

Sounds okay to me.

 

[DLgal]

Only $100k, that's funny...

It's not funny. I'm a SAHM to 2 special needs kids who will require life long support. $100k is nothing if he died. His salary at this job is almost twice that. $100k will only pay our RENT for 2 years. His other life insurance policies total a bit over $3M, which is what the underwriters say he is "worth." And that was 5 years ago. He is underinsured, currently, based on his salary.

The current recommendation is 25 times your annual salary in life insurance coverage when you have a family to provide for.

 

[TLSnell1981]

Yeah I don't understand why people think their heirlooms are worth anything. Most of it is junk and no one is going to pay you what you think it is worth. Truth of it isn't worth much.

One person's junk is another one's treasure. For me the true value is mostly sentimental. We have items that always spark a conversation about loved ones or memories when using or viewing the item. They can also be practical because you do not need to purchase that item i.e. china, silver, furniture, etc.

I tell my kids if you don't need it or know what it is...leave it. My "stuff" isn't for sale. I do intend on having most passed down before I die and have certain items listed in my will. Anything/everything else is designated for charity.

And to answer the original question, each of our children knows what is in our wills. There is full disclosure/access for each...no surprises or shenanigans.

 

[barkley]

If they can sell my body either in parts or as a whole, legally or illegally, I am fine with whatever.

keep your body in decent shape then. i found that you could not donate one to science or 'the farm' where they do forensic criminal research if a myriad of health issues existed prior to the individual's death.

It's not funny. I'm a SAHM to 2 special needs kids who will require life long support. $100k is nothing if he died. His salary at this job is almost twice that. $100k will only pay our RENT for 2 years. His other life insurance policies total a bit over $3M, which is what the underwriters say he is "worth." And that was 5 years ago. He is underinsured, currently, based on his salary.

The current recommendation is 25 times your annual salary in life insurance coverage when you have a family to provide for.

i think they thought you were dismissing $100K as 'nothing' dollar wise. i don't think that was the case.

i'm in a similar situation as you-i have the 1 adult disabled child with life long needs, i WISH i could get an additional $100K for only $8 per month!

 

[RoseGold]

The current recommendation is 25 times your annual salary in life insurance coverage when you have a family to provide for.

Even Dave Ramsey doesn't recommend that, and he is sponsored by people selling insurance. Even he says 10-12x and you phase it out as you get older.

Obviously special needs is a different thing, but that's different than whatever the "current recommendation" is.

 

[White Cat]

No they don’t.

 

[tvguy]

Yeah, we didn't even get the life insurance for my husband's new job. You have to pay for it. It's not free. And the amount wasn't even 1x his annual salary. It was only $100k. And it cost like $8 a month or something. Pass.

That's a pretty healthy life insurance benefit.

 

[DLgal]

Even Dave Ramsey doesn't recommend that, and he is sponsored by people selling insurance. Even he says 10-12x and you phase it out as you get older.

Obviously special needs is a different thing, but that's different than whatever the "current recommendation" is.

Dave Ramsey might want to look into updated numbers. We were told 25x in 2017 when we applied for secondary term policies. That is what underwriters will insure you up to. I was issued a $1M as a non working spouse. Non working spouses can be insured at the same threshold as their working spouse.

Term policies are meant to replace income for the remainder of a person's working life. At the age of 40, someone seeking a term policy will need 25 years of income replacement.

We don't yet own a home due to high COL. If my husband died tomorrow, we'd need at least $1M JUST to buy a home. And the rest of the money from insurance would have to last us like 40 years.

The vast majority of Americans are severely underinsured.

 

[RoseGold]

Dave Ramsey might want to look into updated numbers. We were told 25x in 2017 when we applied for secondary term policies. That is what underwriters will insure you up to. I was issued a $1M as a non working spouse. Non working spouses can be insured at the same threshold as their working spouse.

So an insurance salesman told you to buy more insurance?

Sure, maybe you're insanely wealthy and need to load up on insurance to avoid the estate tax for your millions of dollars you plan to leave, and the art collection is already held in trust. Or maybe you have special needs. General mainstream personal financial recommendations are less than half that for most people.