inheritance questions (real estate, insurance, lawyer)

[shadowfax1997]

hi all

I have a couple questions about estates and inheritance, and I probably should know answers, but haven't had the pleasure of going through any of this process first hand.

My mother is trying to plan her estate so the 4 sons get the most from their inheritance. She doesn't want the fed/state taking all the money, and she doesn't want us to have to pay lots. The estate including properties is probably worth about $600,000. She is widow, 68 and in very good health.

From my reading, there is no inheritance tax in maine. SO I would pay no tax on moneys I inherit to the state of maine? How about feds?

Also, estates in maine aren't taxed up until 2 million value, so there would be no estate taxes owed anyone?

Biggest reason I ask, there is an insurance agent trying to sell a policy to here that would guarentee no expenses on my brothers and I after my mother dies. It would cost her $6000/yr. SOunds odd to me, and I am meeting with my mother and agent next week.

thanks

[7th generation]

I don't think there is one but I'd be for talking to a lawyer.

Maine Inheritance Tax Laws - Labor Law Talk Blog


Disclaimer: I am not an attorney nor do I play one on TV.

[Zymer]

Originally Posted by 7th generation

...I'd be for talking to a lawyer.

Absolutely. You want an attorney who specializes in estate planning.

An 'insurance policy' to guarantee that you have no expenses? For $6000 a year?

I have never heard of such a thing, but then, I'm sure there are things that I haven't heard of that are legit, or maybe I don't have some necessary details that would let me know it is something legit or misunderstanding the type of policy it is...

...but frankly, my scam radar is screaming a warning. There are many slick-talking con-artists who prey on older folks, counting on ignorance and/or confusion to aid them in various schemes to get [some of] the money they have saved up throughout their lives.

The cost of a consultation with a lawyer, and following some of the guidance he may give should be far less than what this 'insurance salesman' is trying to get. Maybe the guy is legit, but get the lawyers advice first (and provide him with any paperwork that your mother may have received regarding this 'insurance').

My father had things planned in advance- he had put his real estate in a trust with my brothers and I as trustees so there was no transfer and no taxes. Anything that required any legal transfer (such as vehicles) he transferred before he died, so no taxes. Everything else was unrecorded and things that had value were in a safe place that we knew how to get to without it having to be anyone else's business.

[mollysmiles]

my scam radar is bleeping too.... could be nothing, but needs to be checked out. And, I wouldn't be meeting with anybody until she meets with an attorney. Seems she needs an estate attorney, not someone to sell her an insurance policy. Good luck~ and I'd be interested to know what you learn!

[Submariner]

We recently went through two estate inheritances with two over-lapping wills. It was a horrible complicated mess. Every possible way that you could possibly mis-read the wills was used to come up with a huge assortment of possible of interpretations. It ended up including a legal suit being filed to sue siblings and one counter-suit. The big 'winners' were the lawyers.

No inheritance taxes were paid however.

In the off chance that the lawyer writing the will is entirely demented, you may wish to hire a second lawyer. Independent of the first lawyer. To read the will, and to screen it for contradictions or errs.

[lawmom]

Please see a lawyer who specializes in estate planning. It can be a complicated area of law and no one here will be able to give you that kind of advice (other than scam warnings which I wholeheartedly agree with!)

(I could have just said, "Ditto the above posts", lol.)

[survivedetroit]

have your mother put all of her assets into an irrevocable trust for the benefit of her children. No probate, no inheritance tax. Talk to a lawyer asap.

[shadowfax1997]

Thanks for thoughts. I was nervous about the issue.

Basically it is an insurance policy. My mother wants to make sure my brothers and I are well taken care of financially. After listening to the salesman and going through numbers it does make financial sense. No worries.