Assume an elderly person has a moderately large estate but there are no probate assets because the assets have beneficiaries, POD, are in an ILIT, are a 529, or are in a bypass trust.
Everything is scheduled to be split in thirds to their three children. Although the mechanisms differ - ILIT, PODs, beneficiaries, spillover will, and trust - they are all written that way.
The person has minimal debts, but there will be the expected ones: cremation, last medical bills, last credit card bill, taxes, attorney fees, etc. The person's will authorizes payment of these by the executor from the estate assets (as one would expect).
There is a checking account which has enough to cover these, but it has the three kids as PODs on it. The intent was to move the checking account balance into an estate checking account, pay the above bills, then distribute the excess to the three kids.
Assuming the beneficiaries are cooperative and the mechanisms to open an estate checking account are in place, what is the mechanism for getting the checking account balance from the PODs "back" into the estate checking account? The POD makes it "their" money but it needs to be "clawed back" for final expenses. Can they just accept the money as POD then re-deposit it back into the estate checking account?
(Yes, there is a story behind this. No, it's not particularly relevant now. Yes, go ahead and point out why you don't put POD on at least one bank account; I understand now.)
Everything is scheduled to be split in thirds to their three children. Although the mechanisms differ - ILIT, PODs, beneficiaries, spillover will, and trust - they are all written that way.
The person has minimal debts, but there will be the expected ones: cremation, last medical bills, last credit card bill, taxes, attorney fees, etc. The person's will authorizes payment of these by the executor from the estate assets (as one would expect).
There is a checking account which has enough to cover these, but it has the three kids as PODs on it. The intent was to move the checking account balance into an estate checking account, pay the above bills, then distribute the excess to the three kids.
Assuming the beneficiaries are cooperative and the mechanisms to open an estate checking account are in place, what is the mechanism for getting the checking account balance from the PODs "back" into the estate checking account? The POD makes it "their" money but it needs to be "clawed back" for final expenses. Can they just accept the money as POD then re-deposit it back into the estate checking account?
(Yes, there is a story behind this. No, it's not particularly relevant now. Yes, go ahead and point out why you don't put POD on at least one bank account; I understand now.)
Statistics: Posted by secondcor521 — Thu Aug 29, 2024 1:04 pm — Replies 0 — Views 72