Will vs POD?
Will vs POD?
If a will states that "John Doe" is to have all of my assets after my death but my checking account POD names "Jane Smith" - who gets the money in the checking account?
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Re: Will vs POD?
+1. Specific designation of POD or beneficiary supersedes the will.
Re: Will vs POD?
Your will controls only property owned in your name alone and without a designated beneficiary.
Gill
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Re: Will vs POD?
I will say this. While probate is a pain. If you want to be buried in a nice place make sure you have that planned and sufficient assets in the probate estate to pay for it. All pod are their funds and while technically can be pulled back for debts its unlikely to happen.
Please do NOT put charities in the probate estate!! Designate funda directly to them.
Please do NOT put charities in the probate estate!! Designate funda directly to them.
Re: Will vs POD?
Well, even if you don't care and end up buried in a crummy place - you need to leave enough in your estate to payJGoneRiding wrote: ↑Sun May 05, 2019 9:20 pm .....If you want to be buried in a nice place make sure you have that planned and sufficient assets in the probate estate to pay for it.....
a) Executor's fee (usually based on a percentage of the estate)
b) Tax accountant's fee for preparation of two (2) returns; one for the decedent (final) and one for the estate (even if no taxes are owed, estate return req)
c) Misc. - cost of legal notice in newspaper, opening separate checking acc't in name of estate, bonding co. fee for posting bond for executor (if required in your state) and so forth. Am sure have forgotten some, maybe others can add to the list.
As a general rule, yes, you want to pass assets directly to beneficiaries when advisable, bypass probate, to reduce the size of estate (It is calculated on the day of death)
Re: Will vs POD?
From an estate tax perspective, wouldn’t the value of the estate include IRAs with named beneficiaries, POD accounts, and any other asset that has similar titling?drawpoker wrote: ↑Sun May 05, 2019 10:41 pmAs a general rule, yes, you want to pass assets directly to beneficiaries when advisable, bypass probate, to reduce the size of estate (It is calculated on the day of death)JGoneRiding wrote: ↑Sun May 05, 2019 9:20 pm .....If you want to be buried in a nice place make sure you have that planned and sufficient assets in the probate estate to pay for it.....
Steve
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Re: Will vs POD?
Yes. The size of a taxable estate is completely independent of what is subject to probate. One has nothing to do with the other.Longdog wrote: ↑Mon May 06, 2019 6:03 amFrom an estate tax perspective, wouldn’t the value of the estate include IRAs with named beneficiaries, POD accounts, and any other asset that has similar titling?drawpoker wrote: ↑Sun May 05, 2019 10:41 pmAs a general rule, yes, you want to pass assets directly to beneficiaries when advisable, bypass probate, to reduce the size of estate (It is calculated on the day of death)JGoneRiding wrote: ↑Sun May 05, 2019 9:20 pm .....If you want to be buried in a nice place make sure you have that planned and sufficient assets in the probate estate to pay for it.....
Re: Will vs POD?
That might depend on how much you trust your heirs, and/or state law. My last surviving parent had all their major assets POD/TOD to the children (my siblings and I). We didn't even open an estate - the value of the household goods was below the threshold where that state would require opening an estate. We were named as co-executors in case opening an estate was desirable.Well, even if you don't care and end up buried in a crummy place - you need to leave enough in your estate to pay
a) Executor's fee (usually based on a percentage of the estate)
b) Tax accountant's fee for preparation of two (2) returns; one for the decedent (final) and one for the estate (even if no taxes are owed, estate return req)
c) Misc. - cost of legal notice in newspaper, opening separate checking acc't in name of estate, bonding co. fee for posting bond for executor (if required in your state) and so forth. Am sure have forgotten some, maybe others can add to the list.
So:
1)We didn't have any executor's fees.
2)We did pay to have the taxes done (but we could have done them ourselves)
3)We didn't put any notice in the paper (maybe the funeral home did; we wrote a check for the cremation). We didn't open any special accounts, didn't have a bond, etc, etc.
We just wrote checks for the final utility/medical/etc bills. I don't know what would have happened if we decided to stiff those creditors. We weren't planning to, so we didn't ask the attorney who drafted the will what would happen if we did.
Note that this is going to be state specific, e.g. I'm not sure all states have TOD real estate deeds.
Re: Will vs POD?
Yes. The size of a taxable estate is completely independent of what is subject to probate. One has nothing to do with the other.Greenman72 wrote: ↑Mon May 06, 2019 7:52 am
"From an estate tax perspective, wouldn’t the value of the estate include IRAs with named beneficiaries, POD accounts, and any other asset that has similar titling?"
[/quote]
Apparently not in Maryland. Or else, I have been paying an attorney fees for estate planning that ain't worth beans.
- Earl Lemongrab
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Re: Will vs POD?
Not for things like determining attorney/executor fees. For formula-based compensation, only what passes via probate counts.Greenman72 wrote: ↑Mon May 06, 2019 7:52 am The size of a taxable estate is completely independent of what is subject to probate. One has nothing to do with the other.
Re: Will vs POD?
JGoneRiding wrote: ↑Sun May 05, 2019 9:20 pm I will say this. While probate is a pain. If you want to be buried in a nice place make sure you have that planned and sufficient assets in the probate estate to pay for it. All pod are their funds and while technically can be pulled back for debts its unlikely to happen.
Please do NOT put charities in the probate estate!! Designate funda directly to them.
All the Best, |
Joe
Re: Will vs POD?
Estate return (1041) required if more the $600 income for the estate. When I was a tax preparer, I prepared many 1040 final returns for decedents but very few 1041 returns.drawpoker wrote: ↑Sun May 05, 2019 10:41 pmWell, even if you don't care and end up buried in a crummy place - you need to leave enough in your estate to payJGoneRiding wrote: ↑Sun May 05, 2019 9:20 pm .....If you want to be buried in a nice place make sure you have that planned and sufficient assets in the probate estate to pay for it.....
a) Executor's fee (usually based on a percentage of the estate)
b) Tax accountant's fee for preparation of two (2) returns; one for the decedent (final) and one for the estate (even if no taxes are owed, estate return req)
c) Misc. - cost of legal notice in newspaper, opening separate checking acc't in name of estate, bonding co. fee for posting bond for executor (if required in your state) and so forth. Am sure have forgotten some, maybe others can add to the list.
As a general rule, yes, you want to pass assets directly to beneficiaries when advisable, bypass probate, to reduce the size of estate (It is calculated on the day of death)
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Re: Will vs POD?
Do you need to get a Tin for the 1041? I wasn't sure yet if I should apply for one. We are selling enough things I think it counts as income??pshonore wrote: ↑Mon May 06, 2019 7:49 pmEstate return (1041) required if more the $600 income for the estate. When I was a tax preparer, I prepared many 1040 final returns for decedents but very few 1041 returns.drawpoker wrote: ↑Sun May 05, 2019 10:41 pmWell, even if you don't care and end up buried in a crummy place - you need to leave enough in your estate to payJGoneRiding wrote: ↑Sun May 05, 2019 9:20 pm .....If you want to be buried in a nice place make sure you have that planned and sufficient assets in the probate estate to pay for it.....
a) Executor's fee (usually based on a percentage of the estate)
b) Tax accountant's fee for preparation of two (2) returns; one for the decedent (final) and one for the estate (even if no taxes are owed, estate return req)
c) Misc. - cost of legal notice in newspaper, opening separate checking acc't in name of estate, bonding co. fee for posting bond for executor (if required in your state) and so forth. Am sure have forgotten some, maybe others can add to the list.
As a general rule, yes, you want to pass assets directly to beneficiaries when advisable, bypass probate, to reduce the size of estate (It is calculated on the day of death)
Also do you know can probate be closed if still awaiting to file the taxes? I won't have all the tax paperwork till next spring!
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Re: Will vs POD?
I think, but am not 100% certain as I am still in the midst of this process, that I can elect to file a 1041 in order to capture the pass-through itemized deductions associated with selling the house? We do not have $600 in income but we have enough expenses that I think we will want to file a 1041.pshonore wrote: ↑Mon May 06, 2019 7:49 pmEstate return (1041) required if more the $600 income for the estate. When I was a tax preparer, I prepared many 1040 final returns for decedents but very few 1041 returns.drawpoker wrote: ↑Sun May 05, 2019 10:41 pmWell, even if you don't care and end up buried in a crummy place - you need to leave enough in your estate to payJGoneRiding wrote: ↑Sun May 05, 2019 9:20 pm .....If you want to be buried in a nice place make sure you have that planned and sufficient assets in the probate estate to pay for it.....
a) Executor's fee (usually based on a percentage of the estate)
b) Tax accountant's fee for preparation of two (2) returns; one for the decedent (final) and one for the estate (even if no taxes are owed, estate return req)
c) Misc. - cost of legal notice in newspaper, opening separate checking acc't in name of estate, bonding co. fee for posting bond for executor (if required in your state) and so forth. Am sure have forgotten some, maybe others can add to the list.
As a general rule, yes, you want to pass assets directly to beneficiaries when advisable, bypass probate, to reduce the size of estate (It is calculated on the day of death)
I need to read up on this process a bit more. I don't even know how one considers probate 'closed'.
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Re: Will vs POD?
^when the court says it’s closed, it’s closed.
At least until it gets re-opened.
At least until it gets re-opened.