Over the past 13 years, this community has helped me help my dad with so many of his financial, tax, and healthcare questions. I am forever grateful to you all.
My dad passed away, suddenly, at the age of 64, a few days ago. Funeral was yesterday. Now, I have to figure out a few things, and I was hoping you all could help me with his affairs one last time.
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Summary
My dad had a house with a mortgage ($300K remaining, valued at $650K), traditional IRA ($800K), Roth IRA ($70K), checking account ($10K), savings account ($5K), HSA ($5K), and partial ownership of a cabin and some rural land with my uncles and aunt ($125K value).
His will stated that he wanted to give me full ownership of his house, $10K each to 3 of his brothers and sisters, and $1K each to 2 of his best friends. His remaining money would be divided 50/50 between my sister and I. His actual designated beneficiaries on his accounts listed either me at 100% or me and my sister as 50% each. My sister and I have a great relationship and plan to honor his will, regardless.
I also am his power of attorney.
Funeral expenses
My dad did not have life insurance. Funeral was yesterday and costed $17,000. In a few months, we'll need a headstone for his grave which will cost $5,000.
We also received a modest amount of money at his funeral ($1400). Should I deposit this in his checking?
What is the best way to pay for these things?
House
Anything I should know about this? I am hoping I can keep the mortgage but transfer it under my name. I know I am close to the Debt-To-Income ratio on my own mortgage, so I may have to pay off the house with the traditional IRA.
IRA/Roth IRA/HSA/Checking/Savings
Do I literally just call Vanguard and tell them about the death and that I need to transfer his accounts to inherited IRAs? How does that work?
Will
Would his brothers and sister and his two friends get inherited IRAs? Would I transfer money out of his IRA to pay them first? Would I transfer money out of my inherited IRA to pay them?
Girlfriend
This is not in his will, but he told me many times to make sure his girlfriend had some money. He nevr disclosed the amount. I am thinking about sending her $1,000 for a year or two, but my sister absolutely does not want to send her any money.
Taxes for 2023 and 2024
How do we pay taxes since inherited IRAs and money will be dispersed?
--
My head is in a daze, and there is probably a lot of obvious stuff I am going to miss. I wish there was a checklist or Bogleheads wiki page for how to handle things after a parent dies.
Any advice is appreciated, even if it's just a tip or suggestion. If there is anything else I should be thinking about, please let me know as well.
Thank you so much.
EDIT: We are in Florida, if that helps.
My dad passed away, suddenly, at the age of 64, a few days ago. Funeral was yesterday. Now, I have to figure out a few things, and I was hoping you all could help me with his affairs one last time.
-
Summary
My dad had a house with a mortgage ($300K remaining, valued at $650K), traditional IRA ($800K), Roth IRA ($70K), checking account ($10K), savings account ($5K), HSA ($5K), and partial ownership of a cabin and some rural land with my uncles and aunt ($125K value).
His will stated that he wanted to give me full ownership of his house, $10K each to 3 of his brothers and sisters, and $1K each to 2 of his best friends. His remaining money would be divided 50/50 between my sister and I. His actual designated beneficiaries on his accounts listed either me at 100% or me and my sister as 50% each. My sister and I have a great relationship and plan to honor his will, regardless.
I also am his power of attorney.
Funeral expenses
My dad did not have life insurance. Funeral was yesterday and costed $17,000. In a few months, we'll need a headstone for his grave which will cost $5,000.
We also received a modest amount of money at his funeral ($1400). Should I deposit this in his checking?
What is the best way to pay for these things?
House
Anything I should know about this? I am hoping I can keep the mortgage but transfer it under my name. I know I am close to the Debt-To-Income ratio on my own mortgage, so I may have to pay off the house with the traditional IRA.
IRA/Roth IRA/HSA/Checking/Savings
Do I literally just call Vanguard and tell them about the death and that I need to transfer his accounts to inherited IRAs? How does that work?
Will
Would his brothers and sister and his two friends get inherited IRAs? Would I transfer money out of his IRA to pay them first? Would I transfer money out of my inherited IRA to pay them?
Girlfriend
This is not in his will, but he told me many times to make sure his girlfriend had some money. He nevr disclosed the amount. I am thinking about sending her $1,000 for a year or two, but my sister absolutely does not want to send her any money.
Taxes for 2023 and 2024
How do we pay taxes since inherited IRAs and money will be dispersed?
--
My head is in a daze, and there is probably a lot of obvious stuff I am going to miss. I wish there was a checklist or Bogleheads wiki page for how to handle things after a parent dies.
Any advice is appreciated, even if it's just a tip or suggestion. If there is anything else I should be thinking about, please let me know as well.
Thank you so much.
EDIT: We are in Florida, if that helps.
Statistics: Posted by kerplunk — Wed Jan 17, 2024 3:31 pm — Replies 6 — Views 849