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Old 08-05-2014, 07:52 AM
 
Location: Chapel Hill, NC, formerly DC and Phila
8,569 posts, read 12,665,533 times
Reputation: 8332

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Thanks, oldnorthstate.

Correct, we don't need the money, so it doesn't matter if it takes 4 months or longer to distribute. I was just wondering tax-wise if there was anything we should do beforehand. But it appears that estate taxes don't hit until over $5+ million, so that's not a concern. We were going to sell her house last month, but it took a while to clean out, so my husband might wait. It appears most of her other assets have my husband's name on them, so it looks like it will be straightforward and hopefully we won't need a lawyer. Thanks for you input.
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Old 08-05-2014, 10:37 AM
 
Location: Aiken, South Carolina, US of A
1,765 posts, read 3,857,619 times
Reputation: 3571
Inheritances are not FEDERALLY taxable.
BIG difference as far as STATE taxes.
GET AN ATTORNEY YESTERDAY.
Estate Planning Attorney.
In Pennsylvania, the STATE will freeze all bank accounts with your
MILs name on them as soon as she dies.
Every state is different.
Get an Estate Planning Attorney NOW.
He will let you know what to do.
My girlfriend, at the age of 19, when she was in college, her dad
died suddenly. She lived with her parents, it was a horrible shock.
The State Of Pennsylvania FROZE all the bank accounts that had his
name on them.
Her mom had a joint checking and savings account with her dad, and direct
deposit from her job.
They had to beg family members for money, because the accounts were frozen.
Can you imagine that?
Sounds awful, doesn't it?
It happened, and you must seek an attorney now.
The State's always there with its hand out, trust me.
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Old 08-05-2014, 11:51 AM
 
Location: UpstateNY
8,612 posts, read 8,295,877 times
Reputation: 7522
^^^ THIS^^^and do it NOW

my father's estate is still in freaking probate and he died September 2012.
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Old 08-05-2014, 11:52 AM
 
Location: Chapel Hill, NC, formerly DC and Phila
8,569 posts, read 12,665,533 times
Reputation: 8332
Quote:
Originally Posted by Butterfly4u View Post
Inheritances are not FEDERALLY taxable.
BIG difference as far as STATE taxes.
GET AN ATTORNEY YESTERDAY.
Estate Planning Attorney.
In Pennsylvania, the STATE will freeze all bank accounts with your
MILs name on them as soon as she dies.
Every state is different.
Get an Estate Planning Attorney NOW.
He will let you know what to do.
My girlfriend, at the age of 19, when she was in college, her dad
died suddenly. She lived with her parents, it was a horrible shock.
The State Of Pennsylvania FROZE all the bank accounts that had his
name on them.
Her mom had a joint checking and savings account with her dad, and direct
deposit from her job.
They had to beg family members for money, because the accounts were frozen.
Can you imagine that?
Sounds awful, doesn't it?
It happened, and you must seek an attorney now.
The State's always there with its hand out, trust me.
Thanks for sharing your experience. I looked into NC's state estate taxes, and they follow the same rule as federal - not taxable unless you get above that $5M mark.

The accounts with my MIL's name on them are HER accounts. Even though my husband's name is on them, we don't use or depend on those accounts at all and never have. So even if the state freezes them for some time, it would not affect us. She just added his name to those accounts when she opened them up. I could see how that would be a problem with a spouse, though.
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Old 08-05-2014, 12:05 PM
 
Location: Prescott AZ
6,119 posts, read 9,071,114 times
Reputation: 11540
I was an only child and when my Mom passed I inherited everything. House, savings, etc. I was POA. We never heard of probate. She had a will, it was current, I was the bene. This was Illinois. Didn't need any expensive attorney.
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Old 08-05-2014, 06:06 PM
 
Location: Out there somewhere...a traveling man.
39,527 posts, read 47,687,050 times
Reputation: 110326
In our state AZ we have a Revocable Trust, set up by our attorney and recorded with the County Recorder. This way we avoid probate and everything is spelled out as who gets what plus a huge savings on any taxes,if there are any. Saves a ton of grief and worry.
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Old 08-05-2014, 07:02 PM
 
10,812 posts, read 8,056,502 times
Reputation: 17010
Quote:
Originally Posted by michgc View Post
The accounts with my MIL's name on them are HER accounts. Even though my husband's name is on them, we don't use or depend on those accounts at all and never have. So even if the state freezes them for some time, it would not affect us. She just added his name to those accounts when she opened them up. I could see how that would be a problem with a spouse, though.
My mom had added my brother to her checking account. Like you, he never accessed the funds while she was living. After she died, it was temporarily frozen but he took a copy of her death certificate to the bank and was able to withdraw the balance and close the account without probate or further ado. He divided it equally among his siblings, as was mom's wish. We live in TX, don't know if it differs in other states.
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Old 08-05-2014, 07:19 PM
 
Location: Baltimore, MD
3,745 posts, read 4,214,395 times
Reputation: 6866
Quote:
Originally Posted by michgc View Post
My mother-in-law suffered a debilitating stroke over the winter and is in a nursing home. She likely doesn't have much time left. In the mean time, my husband has power of attorney over her finances. Is there anything he needs to do financially before she dies that would make sense tax-wise versus doing it after she dies?

This is what she has:

She owns a house worth about $100K. It is in her name and my husband's name, although not with survivorship. He will be selling this house. It can be sold now or later.

She has an annuity IRA worth about $85K

She has another annuity (not IRA) also worth about $85K

She has mutual funds worth $30K

She has CDs worth $60K

She has about $20K in her checking account which will pay for her funeral and other expenses. The checking account is joint with my husband.

These are all of her assets. My husband is an only child and is the beneficiary on anything that has a beneficiary.

We were just going to plug along and take care of things after she passes, but just want to make sure there isn't something that should be done beforehand either because of taxes or because there is less complicated paperwork.

If you have any tips, let me know. Thanks!
I assume she is paying for the nursing home care with the annuities/social security and perhaps other income?
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Old 08-05-2014, 11:42 PM
 
Location: Chapel Hill, NC, formerly DC and Phila
8,569 posts, read 12,665,533 times
Reputation: 8332
Quote:
Originally Posted by lenora View Post
I assume she is paying for the nursing home care with the annuities/social security and perhaps other income?
She has long-term care which is paying for the majority of it, and the rest comes out of her social security check or checking account.
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Old 08-05-2014, 11:43 PM
 
Location: Chapel Hill, NC, formerly DC and Phila
8,569 posts, read 12,665,533 times
Reputation: 8332
Quote:
Originally Posted by biscuitmom View Post
My mom had added my brother to her checking account. Like you, he never accessed the funds while she was living. After she died, it was temporarily frozen but he took a copy of her death certificate to the bank and was able to withdraw the balance and close the account without probate or further ado. He divided it equally among his siblings, as was mom's wish. We live in TX, don't know if it differs in other states.
Thanks, Biscuitmom. That's my husband's understanding on how it works here in NC, too. We just now need to check if he is on all of the accounts.
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