unnamed beneficiaries

[newexec]

What is the name of your state? West Virginia

Just before her death, my mother asked me to prepare a codicil to leave specific bequests to her grandchildren, who are not named in the will. She died that night, before she could sign the codicil. My brother and I, who are the sole beneficiaries under the will, want to give effect to those bequests. The grandchildren are my brother's children.

The bulk of the estate is in non-probate assets, like her IRA and brokerage account. In fact, all the probate assets are non-liquid, like her house.

Will there be any tax impact--such as gift tax--if we transfer the amounts to the kids from the non-probate accounts? Any different result is we wait and give them the proceeds from the non-liquid assets once the will is probated?

 

[BelizeBreeze]

What is the name of your state? West Virginia

Just before her death, my mother asked me to prepare a codicil to leave specific bequests to her grandchildren, who are not named in the will. She died that night, before she could sign the codicil. My brother and I, who are the sole beneficiaries under the will, want to give effect to those bequests. The grandchildren are my brother's children.

The bulk of the estate is in non-probate assets, like her IRA and brokerage account. In fact, all the probate assets are non-liquid, like her house.

Will there be any tax impact--such as gift tax--if we transfer the amounts to the kids from the non-probate accounts? Any different result is we wait and give them the proceeds from the non-liquid assets once the will is probated?

I am not qualified to answer your question, however, I just wanted to commend you and your brother for sticking to your word, although, legally, you are not required to.

We see too damn many people on this forum asking "How do I keep what's mine and take what's their's"....

You will receive help soon. stick around.

 

[Ithildriel]

Not legal advice

And I hope someone answers you soon. And like BB Thank You for sharing your story of honoring your mother's request as you knew she wanted, regardless of whether you legally had to.

I don't know how much money you are looking at, but IRS allows gift up to 11K per calendar year per person I believe. So you and your brother could gift to each child 11K each, each year without tax consequenses until the bequest is fulfilled.

 

[BlondiePB]

I am not qualified to answer your question, however, I just wanted to commend you and your brother for sticking to your word, although, legally, you are not required to.

We see too damn many people on this forum asking "How do I keep what's mine and take what's their's"....

You will receive help soon. stick around.

This poster is definitely a breath of fresh air. Kudos to the OP.

BTW, nice to see you back, BB. Hope you had a wonderful time while away and Scruffy is doing well. You too.

 

[BelizeBreeze]

awww thanks
I have been looking into this a little and I would advice you to contact a financial advisor in West Virginia and discuss the Uniform Transfer to Minors Act since each state has differing requirements and maturity dates.

 

[Dandy Don]

What are the ages of the children? You need to be deciding whether you want them to actually have the money now or hold it in trust for them to be given to them at a future date (perhaps for college or when they reach adulthood).

An estate planner/financial planner can advise you about this, as you have already been told and if that person can't tell you about the tax implications, a local tax accountant or CPA can.

DANDY DON IN OKLAHOMA ([email protected])

 

[newexec]

The children aren't children at all--they're both over age 21. And the desired bequests are well over the $11K limit.

I have a call out to an accountant, thanks.

I'm a little disheartened that so many of you find it unusual to want to follow our mother's wishes. I suppose it would be different if it were a home for cats or something. But it is, after all, my brother's kids.

 

[BlondiePB]

The children aren't children at all--they're both over age 21. And the desired bequests are well over the $11K limit.

I have a call out to an accountant, thanks.

I'm a little disheartened that so many of you find it unusual to want to follow our mother's wishes. I suppose it would be different if it were a home for cats or something. But it is, after all, my brother's kids.

Read some of these posts, newexec. You will then understand why your thread is rare and why we think it is a pleasure to read about honoring your mother's wishes when you do not have to.

 

[BelizeBreeze]

I'm a little disheartened that so many of you find it unusual to want to follow our mother's wishes. I suppose it would be different if it were a home for cats or something. But it is, after all, my brother's kids.

You won't be if you spend 10 minutes reading the posts in this thread. And that's the unfortunate part of live these days.

 

[Ithildriel]

The children aren't children at all--they're both over age 21. And the desired bequests are well over the $11K limit.

I have a call out to an accountant, thanks.

I'm a little disheartened that so many of you find it unusual to want to follow our mother's wishes. I suppose it would be different if it were a home for cats or something. But it is, after all, my brother's kids.

It is unfortunate, but a fact not only of this website, but the estate planning industry in general. Unfortunately this is an area that tends to bring out the worst in people, not the best.