If you’re a co-owner of a joint bank account with rights of survivorship, you may be wondering what happens if the other owner passes away.  Here’s an overview:

No Probate

This type of joint account is a non-probate asset, so the account will pass directly to you, outside of the probate process.  Generally, all that’s required to remove a decedent’s name from a joint account is to present a death certificate to your financial institution and fill out the required paperwork.

Final Bills

Generally, just the fact that you’re the co-owner of a joint account does not make you personally responsible for paying the decedent’s final bills or debts.  But, if the two of you had other connections, then you may be on the hook for some bills or debts.  For example, if you co-signed or guaranteed any of the decedent’s debts, then you’re responsible.  If you have questions in this area,  you’d be wise to check with an attorney.

Income Tax

For interest-bearing accounts, there will be income tax considerations.  Of course, from the time your co-owner passes away, the account is yours, and this means that you’ll pay income tax on the account earnings.

What about income tax for the period immediately before the decedent passed away? That will be handled the same way it was during the decedent’s lifetime.  So, if the two of you split the income taxes during the decedent’s lifetime, then the decedent’s final tax return will reflect half the income tax liability for the account, and you’ll be responsible for the other half.

Estate Taxes

Even though joint accounts are non-probate assets, they’re still counted as the decedent’s property for estate tax purposes.  If you’re the decedent’s surviving spouse, then 50% of the account’s value will be included in the decedent’s gross estate for estate tax purposes.  If you’re not the decedent’s surviving spouse, then 100% of the value will be factored into the estate tax calculation.  And, if the decedent’s estate has an estate tax bill, a portion of it might be paid from your joint account.

To discuss futher how the death of a co-owner could affect your Estate Plan and the taxes or debts you owe, we invite you to call us for an appointment – (336) 547-9999.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

Do you have a Roth IRA? If not, you’re missing out on some great financial benefits.

Tax Free Withdrawals

When you have a Roth IRA, your money is taxed when you earn it so any contributions you make to a Roth IRA can be withdrawn, any time, tax-free. In addition, all withdrawals – interest included are tax free if you are at least 59 ½ and you’ve had your Roth IRA for at least 5 years. These tax-free distributions will continue when the money is left to your heirs as well, so any funds your beneficiary inherits from a Roth IRA won’t be taxable.

No Mandatory Withdrawal Age

Like most retirement accounts, Roth IRAs allow you to begin withdrawing funds at age 59 ½. There is, however, no mandatory age to begin making withdrawals so if you choose, you can leave all the money in your account to your heirs.

No Required Withdrawal Amount

Traditional IRAs have a mandatory minimum distribution that you must take at age 70 ½. A Roth IRA however, does not so if you don’t need to take the money out, you don’t have to.

Avoid Probate

A Roth IRA is a Payable on Death account, meaning that the beneficiary is named in the document itself. Because of this, funds from a Roth IRA do not have to go through probate before they can be distributed to your heirs.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

There are about 1000 steps which need to be taken, start to finish, when someone passes. All the steps must be handled in a certain order and within certain time frame. The court will not sign off on the estate until all the steps are done right.

When someone uses our services to handle a probate or administration we handle the entire process. After 23 years we have systems in place to make sure that everything is done efficiently and done right. Our top priority is to know that the job is done correctly and no one will come back against you for missing something or messing something up. Without an attorney, you are personally liable for all mistakes. To accomplish our primary goal we do all of the following and much, much more.

Here are the top 18 things our probate clients should know.

1. We move the process along for you in an expeditious manner, handling matters within several months instead of the typical 1 to 2 years associated with most estates.
2. We file all the proper paperwork and legal documents with the court for you.
3. We acquire the proper legal permission slips from the court to allow the executor to pay the bills, access the accounts and carry out the directions of the person whom has passed away for you.
4. We file the Notice of Creditors with the local paper for you.
5. We post necessary bonds for you.
6. We make sure that all the court fees and expenses are paid for you.
7. We gather all of the information then write and call the different companies for you.
8. We set up and transfer the necessary accounts to the estate and draft deeds to the proper parties for you.
9. We make sure all of the legally reported bills are paid for you.
10. We make sure the proper insurance is set up on the assets for you.
11. We make sure that the final income taxes are handled correctly for you.
12. We analyze the estate for estate tax consequences for you.
13. We make sure that retirement accounts are distributed properly for you, minimizing the taxation associated with such accounts.
14. We negotiate creditor claims such as credit cards, hospital expenses, Medicaid and outstanding bills for you.
15. We arrange for the liquidation of personal property and real estate for you.
16. We make sure you are paid for you time.
17. We acquire the proper releases and distribute the estate to the heirs for you.
18. We finalize and close the estate for you with the Court.

Law Offices of Cheryl David
5606 W. Friendly Avenue
Greensboro, NC 27410
(336)547-9999
www.cheryldavid.com
cheryl@cheryldavid.com

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

My Husbands Father died a few weeks ago, He owned a small company, and left 100% of the companies stock to my husband. Now the Exector of the will, tells my husband that he is the president of the company, has given my husband a $300.00 a week pay cut and is telling him that my husband only owns the company in name only, and in it’s debits, but does not own any of the inventory or receivibles. Can this be true. The Exector also has told him, that he wants to buy his stock for $100,000, but noone has any idea what the company is truely worth. Can you advise me how to advise my husband.
Usually I will answer questions, but my best advice to you and your husband in this situation is to get an attorney. The executor might well be exceeding his position. Your husband owns 100% of the stock. This is too important to be resolved with an email question. Seek Counsel.

Cheryl David
Law Offices of Cheryl David
5606 W. Friendly Avenue
Greensboro, NC 27410

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

My mother passed away in January 2009. She left a will naming my brother as executor. I have other siblings and he has basically just cut us out of his life. We found out that he took the will to the court house in our county but did not do the proper procedure, He only probated the will . he had done nothing else. My mother put everything in his name, not his and his wife’s name because she was afraid to lose everything because of medical bills. My brother was supposed to divide things up equally, following her death he went and changed all the deeds to the property to his and his wife’s names. Told us there was nothing for us except some furniture items from the house. What can we do about it? I think there is a 3 year stat. limitations.
This is a tough situation. If your mother changed everything into your brother’s name before she passed, then everything was your legally your brother’s property before she died. If this was the case, then the will, even though probated, doesn’t leave anything to anyone because there was no property in your mother’s name. While your brother may have an ethical obligation to honor your mother’s intent, he doesn’t have a legal obligation to divide everything between her children unless he fraudulently acquired this property. If that is the case then you will need to hire an attorney to prove such a case. Typically these cases are very hard to win.
Sincerely,
Cheryl David

Cheryl David
Law Offices of Cheryl David
5606 W. Friendly Avenue
Greensboro, NC 27410

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

I recently moved out of a rental home, rented under the name of my late husband. He owned all of the appliances within the home. I moved all of the appliances and rest of our belongings out of the home 45 days after his passing. The day I turned in the key, our landlord did a walk through of the home and declared everything to be in good condition and everything checked out ‘good.’ Two weeks later, she called to inform me that the stove was hers. Our stove was more than 8 years old and she is demanding $499 to replace it.

I tried talking to her and explaining that the stove was ours. I asked to see proof that it was hers and she can show me no proof. I also asked for my husband’s original deposit back, which she claims he never made. She can also show me no proof of the original lease– saying she lost it. She continues to inform me that her son is a lawyer and she will press charges against me if I don’t pay for a new stove. Does she have a case?
It is very unlikely that she has a case against you which she could win, but I would advise staying out of court if at all possible. It is a matter of who has proof of ownership of the stove. If your husband owned and paid for all of the appliances then they are yours. However, if she can show proof that she purchased the stove then it would be hers. With an eight year old stove I doubt it would be worth her while or the expense of trying this matter in court. Moreover, an 8 year old stove probably isn’t worth anywhere near $499, so even if she won she wouldn’t get that type of recovery. At best she may get the old stove. It sounds like you are the one who has a case. If you can prove that your husband had a security deposit with her and she wrongfully withheld it, then you are owed that money back. However, security deposits are very hard to get back. The landlord can usually come up with some legitimate reason to keep the money unless your husband had a very specific contract. The security deposit is an asset of the estate, so probate would be necessary before you could take action to recover it. If the probate estate has already been opened mention this to your lawyer or the clerk and see what they can do to assist you.
Very truly yours,
Cheryl David

Cheryl David
Law Offices of Cheryl David
5606 W. Friendly Avenue
Greensboro, NC 27410
www.cheryldavid.com
cheryl@cheryldavid.com
(336)547-9999

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

When someone passes, unless someone else is named on the account with them, the account will be closed to the family. In other words, the family won’t have access to pay for nursing care and overdue bills until a probate estate is opened through the court. When this occurs the person in charge of the estate, usually the executor if there was a will or the administrator if there isn’t a will, has the authority to access the accounts and pay the bills.
Very truly yours,
Cheryl David
Law Offices of Cheryl David
www.cheryldavid.com
cheryl@cheryldavid.com
(336)547-9999

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

No one in the family can see the will because the lawyer want let them see it

The easiest response to your question is that when the will is filed at the county courthouse in the county where your father-in-law died, it will be a matter of public record in NC and anyone will be able to see will. So, you will need to check with the court and see it when it is filed. The will must be probated to open the estate, so this should happen pretty quickly.

Cheryl David
Law Offices of Cheryl David
5606 W. Friendly Ave.
Greensboro, NC 27410
(336)547-9999
www.cheryldavid.com
cheryl@cheryldavid.com

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

My uncle died without having a will he left $150,000.00 Which is being split between his living siblings and his nieces and nephews I am a niece and because my mother is living. I want to know do I get a share, my other cousins are getting their parents share because their parents are deceased. My uncles great nieces and nephews are getting a share because their parents are deceased. My uncles(that just died)his brothers children, children which is my dead uncles great nieces and nephews and I am just a niece. thank you

Under the NC laws of intestate succession if someone dies without a will the estate passes through the bloodline in the order of living relatives. A spouse and children, if any would inherit first. If children don’t exist we look to spouse and decedent’s parents. If a spouse doesn’t exist, but there are children they would inherit. If no spouse and no children exist we look to living siblings. If one of them is deceased the share would go to their children. Since your Uncle did not have living children, a spouse or parents the estate goes to his siblings and then their children. Since your mother is living and your uncle died without a will you probably won’t get a share. Your cousins probably will get a share if their parent/sibling to your uncle, predeceased him.
Best wishes,
Cheryl David
Law Offices of Cheryl David
5606 W. Friendly Avenue
Greensboro, NC 27410
(336)547-9999
cheryl@cheryldavid.com
www.cheryldavid.com

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

My father recently passed away. The executor of the estate is moving away and is suggesting that her husband be appointed as executor. Is it legal for her to resign as executor and name her successor? We are uncomfortable with this and would like your advice.

An executor/executrix can’t just remove herself. This process must be completed through the clerk of court. The court will look to the will and determine if they want to release the executor from the job. Moving isn’t usually a valid excuse. If the court decides that the executor may be removed the clerk will see who was named second on the will to take her place. If no one was named, they look to biological/adopted family members first, before others. However, the executor/executrix might stay on in the positiona and have someone else do all of the leg work without the court knowing. You have a legitimate right to be uncomfortable with this situation and you may want to address your concerns with the court.
Very truly yours,
Cheryl David
Law Offices of Cheryl David
5606 W. Friendly Avenue
Greensboro, NC 27410
(336)547-9999
www.cheryldavid.com
cheryl@cheryldavid.com

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.