Do you plan to leave the funds in your IRA to multiple beneficiaries?  If so, consider dividing your IRA into a separate account for each beneficiary.   (Your IRA can be divided into separate accounts before your death, obviously, but also by the end of the year following your death.)

Here’s why: Say your husband is the sole beneficiary of an IRA.  When you pass away, he can roll over the IRA into his name, name his own beneficiaries, and put off taking distributions until he reaches age 70 ½.  But the only way to roll over an inherited IRA is if you are the sole beneficiary.

Or say you wish to leave your IRA to your two children.  When an inherited IRA has more than one non-spouse beneficiary, distributions must be taken based on the life expectancy of the oldest beneficiary.  Split the IRA into two separate accounts and each child can take distributions based on his or her life expectancy instead.

Think of it this way:  While it may be easier for you to keep up with one IRA account, it will be much easier for your beneficiaries to make smart choices regarding the funds you leave in an IRA after you pass away if you create separate accounts for each beneficiary.  Isn’t that your ultimate goal?

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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If you die due to the actions or fault of another, oddly enough “you” can still sue – even though you are gone.

Our legal system allows for something called “actions which survive death.”  Qualifying actions can include suing for compensation for medical expenses, pain and suffering, and lost wages, or suing for compensation for property damage among other possibilities.

Who files the suit if you are gone?  In most cases representatives of your estate, because compensation would then benefit your estate.  Any funds or other compensation would become a part of your estate and pass to beneficiaries under the terms of your estate plan.  (Although in some cases, compensation is legally passed to the surviving spouse and/or next of kind.)

So if you die due to the wrongful actions of others “you” still may be able to sue and your heirs may be entitled to compensation.

Strange – but true.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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Marilyn Monroe’s licensing fees are worth an estimated $4 million annually.  Sadly, almost none of that goes to her family or to charity.  Why?  She died with a terrible estate plan.

Her Will specified that 75% of her estate should go to Lee Strasberg, the actor, director, and acting teacher, widely considered the father of method acting.  She wanted money to go to charity, but those wishes weren’t specified.

Strasberg later got married and when he died his wife Anna inherited his estate – including the rights to Monroe’s licensing and royalty fees.  Strasberg inherited her personal effects and stored them in a warehouse.  In 1999 those items were auctioned, netting over $13 million.

In fact, her estate plan created a legal struggle over her possessions and “rights of publicity,” sparking litigation that did not end until 2008, nearly fifty years after she passed away.

Your hard work may not generate royalties and licensing fees, but your estate matters to your heirs.  Call us to make sure your estate plan benefits the people you love – not total strangers.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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All men are created equal, but possibly not all executors – including Thomas Jefferson.

Here’s what happened. Thaddeus Kosciusko came from Poland to the United States to help fight in the Revolutionary War. He contributed heavily to the victory at Saratoga and helped fortify West Point. For his efforts, Jefferson said, “He is as pure a son of liberty as I have ever known.” In fact, Jefferson and Kosciusko were so close Jefferson was named the executor of his estate.

In his Will, Kosciusko left approximately $15,000 in government securities. He directed Jefferson, the executor, to use those funds to purchase as many slaves as possible, free those individuals, and provide for their education.

Sadly, Jefferson went to court after Kosciusko’s death, refused to follow those instructions, and withdrew as the executor of the estate.

The estate was not settled for over thirty years, with the funds eventually going to Kosciusko’s descendants. In the meantime most of Jefferson’s slaves were auctioned after his death to settle Jefferson’s debts – possibly some could have been freed instead, had Jefferson carried out his friend’s wishes.

Few of us have provisions in our estate plan that an executor will not be willing to carry out – but just in case, talk to the person you name as executor or administrator. Their job is to carry out your wishes – make sure they are not only able, but also willing.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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Probate or Administration is a legal process where the Court takes inventory of your assets and distributes them to your heirs after your death. This distribution is either done in accordance with the instructions provided in your Will or in accordance with state law if no Will is present.

Sometimes, however, a person’s property extends beyond state lines, giving two (or more) different states jurisdiction over how their property should be divided and because all state laws are different, your local Court cannot probate property that has out-of-state ownership. In these circumstances, a separate probate hearing is required to address the out-of-state property – this process is known as “ancillary probate”.

Ancillary probate is essentially a probate hearing held in a state other than the deceased’s home state. If instead of owning property in a Trust, you owned a vacation home in just your name, your heirs would have to probate that property in the state where the home resides. This would also hold true for land that your grandparents’ left you in a neighboring state.

Essentially, any real property that is titled or deeded outside of your home state is subject to ancillary probate.

What does that mean for you?

Probate is an expensive and often lengthy process, certainly not something you want to go through multiple times to satisfy a single estate. Double proceedings could also create additional confusion and even result in legal action between your beneficiaries.

The best thing to do when faced with the prospect of ancillary probate is to consult an experienced estate planning attorney. The most common solution is to hold title to your real estate in a Living Trust. A fully funded Living Trust will completely avoid the need for any type of probate, saving your loved ones time and money.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

Visit my website for full links, other content and more!