To: Advisor Re;Trust and Safe Deposit

[Butcher]

The Bonds are United States Savings Bonds and they are in both in my mothers and my name and worth can only be speculated I would guess about 750,000.00 not really too sure. the Jewelry is named in the trust as also the coin collection. Almost forgot to mention that we reside in California. It wasn't the attorney that drew up the trust that mentioned probate it was the Bank manager. She told me that it would have to go thru probate because of the box not being mentioned in the trust and would not allow me access to the box. Fianlly got in touch with the attorney that drew up the trust and she told me that we would have to wait 40 days from death then we could file an Affidavit ? Not to sure what the 40 days pertain to or who we would be filing a affidavit with? Or what that includes? Don't know why the attorney didn't include the Box in the trust to begin with? My mother had the same box for over 30yrs and I'm sure she mentioned it to the attorney when the trust was drawn up.
Thanks for the reply and sorry for taking so long to reply
Butcher

 

[advisor10]

1-22-2002

DEAR BUTCHER:

I am not familiar with California law, but I do think that the bank manager was incorrect when they told you the safe deposit box contents will have to go through probate.

The main reason that someone makes a trust is so that probate can be avoided and that ownership of the assets can go directly to the named beneficiaries of the trust. So you should follow whatever instructions your attorney advises you about whether or not probate is necessary. You may also want to consult a CPA to find out whether any taxes are due (such as federal or state taxes) on this estate.

Under the concept of joint tenancy with rights of survivorship (which I assume also applies in California), the ownership of these bonds passes directly to you without having to go through probate. You can get more information on what you need to do to cash your bonds in by visiting the website www.savingsbond.gov

When you get to the website, look at the "FAQ" section (FREQUENTLY ASKED QUESTIONS), and then click on 2 portions which will be of interest to you: (1) Cashing/Replacing, Question 8 --Deceased Bond Owner, and (2) WHAT YOUR BONDS ARE WORTH.

(If you feel the information I have furnished has been valuable in helping you to benefit financially, then you can send me a C-NOTE ($100 bill or US POST OFFICE MONEY ORDER) by getting my name and address and the e-mail address shown below.)

Whoever the executor of the estate is can cash the bonds in at any local bank that sells savings bonds. The executor must present a certified copy of the decedent's death certificate, plus a certified copy of the executor's letters testamentary. If the bank can't or won't cash the bonds in, the executor will need to get a claim form to do this from the Bureau of Public Debt, Parkersburg, WV (the address and zip code should be shown on the website).

If you can avoid going through probate for these bonds, you should do so, because there will probably be some additional court fees and/or executor fees if these items are probated. However, if they are processed through the trust you should be prepared to pay any reasonable expenses that that might cause, since that is the proper avenue.

SINCERELY,

advisor (e-mail: [email protected])