Americans are, quite literally, getting buried in debt, with nearly half expecting to pass away with outstanding debts. As a rule, a person’s debts do not go away when they die. Some types of debt, such as federal student loans, are typically forgiven upon the debtor’s death. However, private loans and cosigned account holders may […]
Fitness icon Richard Simmons, known for his flamboyant personality, high energy, and trademark attire. He passed away in July 2024 following a fall at his Los Angeles home. A legal dispute lingers between his longtime housekeeper, Teresa Reveles Muro, and his brother, Leonard (Lenny) Simmons. The estate of the Sweatin’ to the Oldies star is […]
These words, uttered by James Earl Jones in his voice-over role as Darth Vader, are indelible in the minds of Star Wars fans. People know Jones also for voicing Mufasa in The Lion King and a series of cable news promotions in which he declared, “This is CNN.”
You regularly check the balances of your retirement, bank, and investment accounts. But when did you last check the beneficiary designations on these accounts? And really, all the other accounts that allow you to name a beneficiary?
According to a stipulated agreement with Iswarienko, Doherty’s estate was able to retain the couple’s home in Malibu, California; a Salvador Dali painting; several cars; and all earnings from her acting. In addition, as part of the divorce proceedings, she had filed an income and expense declaration stating that she had $251,000 in the bank; another $1,880,000 in stocks and bonds; and insurance money from a lawsuit over damage done to her California home. She also stated that she had real property worth $3 million and $134,000 in a pension fund.
In cases where more than one family member is interested in the same item, the best-case scenario is that they can reach a peaceful resolution, perhaps involving trading other sought-after items. If there is an impasse, beneficiaries could sell the item in question and divide the proceeds equally. Another option is for one beneficiary to buy out the other beneficiary’s interest in the item. They could also draw straws or flip a coin. The solution may depend on whether the dispute is over a single item, like a ring, or over multiple items, resulting in a breakdown in the peaceful division of items.
You may run into situations in which third parties require the nominated individual to exercise explicit authority. They may need to complete tasks or manage your financial affairs. If this is the case, you will want it done in a way that is not provided through a signed financial POA. In these cases, if you no longer have capacity, your loved ones may need to go before a judge.
Admittedly, no one makes a suitable substitute for you as a parent. Nevertheless, a guardian steps in when you pass away to assume your parental role and raise your minor child through legal adulthood. Conversely, a trustee manages the financial legacy you leave behind for your minor child. As a parent, you need to consider the skills and characteristics each role requires to ensure that you nominate the right people for the benefit of your child and their inheritance.
Another issue with relying on state law is that none of the transfers to your loved ones happen automatically. Your family must open a probate estate with the court and go through the process specified in state law before your property can transfer out of your name and into theirs. This process can be long and costly. It is also public. Many people prefer that an inventory of their property and the details of their family stay out of the public eye. Perhaps the best way to keep your matters private is by creating and funding a revocable living trust while you are alive and have the legal capacity to do so.
If you designate someone as a joint owner and you die, you cannot control what they do with your property after your death. Perhaps you and your adult child co-owned a business. You may state in your will that the business should be equally shared with your spouse or divided between all your kids; however, the rights of joint owners take priority over the terms of your will, meaning the joint owner will now have full ownership and control over the property.
