Thousands of readers commented on last week’s column, “Children don’t want homes they paid for or ashes.” That’s why I decided to hold a live chat on the theme of inheritance. Here is a summary of the most common questions. This also includes answers to questions that could not be answered during the live chat.
This is a good opportunity to have a personal discussion about what you want to leave behind. And if you don’t have a will, get one. now.
question: How can I find someone I can trust to carry out my will?
answer: Ask your friends and family. If that doesn’t work, contact your local bar association.
American Bar Association website (americanbar.org) Please search for “”Estate planning information and FAQs”
question: What if you don’t have children? I’m concerned about honesty and reliability.
answer: I get questions like this all the time from single people. To be honest, this is a difficult question and there is no right answer.
An estate attorney can be your executor, but many people I interview are not. Because it is a serious responsibility and one that may go unfulfilled for a long time.
For example, if I set this up with a lawyer or firm, what happens if the lawyer retires or the firm disbands?Oftentimes, the departing lawyer will hand over the case to the new firm.
You can also hire a financial planner to handle things for you. However, this type of professional can also run into the same problem.
We recommend building deep connections with trusted friends and relatives. Because frankly, someone needs to see a professional. (Just saying.) So the person who manages your estate might be your best friend. And when you both get older, it could be your best friend’s child. In fact, my husband and I When our children were young, I named my best friend as the personal representative of our estate. I am currently renaming it to my daughter, but you get my point.
And because some people have very strained relationships with their children, Designate someone else to handle your affairs after they are gone.
question: I volunteer at an animal shelter, so it became clear that I needed to plan for my pets. What is the best way to ensure that two cats and a horse are taken care of?
answer: You can keep a pet after you die.When you’re a billionaire And when Leona Helmsley, who was convicted of tax evasion, died in 2007, she famously left a trust fund worth $12 million to the Maltese. A judge later reduced it to $2 million.
Due to animal concerns, we are unable to deposit cash directly to pets. According to the property, Nolo.comand “One property cannot own another.”
However, you can set up pet trust This will allow you to secure the money and appoint a trustee to care for the animal. American Society for the Prevention of Cruelty to Animals (aspca.org) There is an explainer Points to consider during setup Increases trust. When you search on the website, “Introduction to Pet Trust”.
another option Find a person or organization that will care for your pet. If you have the resources, you can leave money aside for care and food.
question: We just moved into a retirement community, and my husband wants to keep the home he pays for so his kids can inherit it with a lower tax burden. I think it’s better to sell it now. you?
answer: I’ll ask my kids and my real estate attorney. Sure, your kids will get incremental increases, but it’s a good idea to sell and keep that money in case you need it for long-term care costs. Also, maintaining a home means maintaining it. If you don’t want your children to be responsible, you may consider hiring a property management company to rent out the property.
By the way, I would like to explain the tiered tax base regulations regarding capital gains. When you pass away and your heirs inherit your home, they get it at current market value or on a stepped-up basis. This means your heirs will be spared paying any capital gains on the property.
question: How much information should I share with my adult child, who has some bad money habits? Our adult daughter is dealing with health issues and moving home to start her career. Ta. She says it will be helpful to “understand mom and dad’s financial situation” to find out what support is available from us. Of course we want to help her, but she also shows a willingness to treat us like an ATM. This is not a question of letting her know so she can manage our finances after we die. (Her sister is going to get that information.)
answer: Follow your instincts. I think she might want the information for selfish reasons. She doesn’t need to know about your business, especially since you’re leaving your other daughter in charge of your affairs.
Most importantly, the daughter in question does not need to know because she has not demonstrated sufficient financial responsibility.