"inheritance"

[rxis]

Hello,

My parents have business property and home property appraised at $200k and $330k respectively. My spouse and I and our children currently live in the house with my parents. I'm planning on taking over the mortgage payments of a $170k balance. The business property is owned by my father as a sole proprietor and it will soon be paid for. My parents reside at the business property and the house. The properties are located in Oklahoma and we are Oklahomans.

When my parents pass away, will I automatically assume ownership of both properties as we have planned or will we have to hire an attorney to form a will?

My parents also have personal and commercial debts in form of credit cards. If these balances are still around when they pass away, will I have to pay for them in order to inherit the home or business? He has a $50k insurance policy, btw.

Would it be more sensible to change ownership by purchasing his home and business or would this interfere with some sort of tax evasion laws? I've heard something of this occuring before.

Edit: There are also a couple of vehicles without liens on them. What happens to it?

 

[rxis]

Am I correct in my assumption that probate court will have to be opened some how in order to "lay it all down on the table and sort debts out"?

For example, is probate where we would make decisions on selling vehicles or properties to settle the deceased debts or assume mortgages?

Is this a costly process? It sounds like a headache and it would make it so much more stress free by changing titles in advance.

 

[tranquility]

Go to the local library, find the legal section and browse the books on will, trusts and estates. Find the one written in a style you prefer. Read it. You have a number of complex questions which cannot be answered without implicating other answers. One key piece of advice, what your PARENTS do now will help you later on if they want you to have the property.

 

[BelizeBreeze]

Your scenario assumes they will die together.

Go with dad and mom to an attorney.

 

[nextwife]

Your scenario assumes they will die together.

Go with dad and mom to an attorney.

EXactly. And that is rarely the case. Depending upon their ages, they may want to see both an estate planning attorney and possibly a financial planner, because it is MORE common that one parent may need extended care for a period of months to years, and their financial planning for THEIR assets should also provide for this possibity..

Are there other siblings that are entitled to share in their parents estate?

 

[colourfastt]

EXactly. And that is rarely the case. Depending upon their ages, they may want to see both an estate planning attorney and possibly a financial planner, because it is MORE common that one parent may need extended care for a period of months to years, and their financial planning for THEIR assets should also provide for this possibity..

Are there other siblings that are entitled to share in their parents estate?

Also, as far as the business is concerned, how is it legally structured? A proprietorship, partnership, or corporation? If it's a proprietorship it will end on the death of that person. For a partnership, check the parntership agreement for how it is handled. If a corporation, find out to whom the shares are willed.

 

[rxis]

I was hoping/dreaming for a simpler way of deal with this without hiring professional services. My father has always told me that he doesn't see why an attourney or a will is necessary because he is stuck in the mind set that the first son receives his fathers estate as it was done in the old country for centuries. hehe
I'll just have to do some through research on my own.

Just to answer some questions:

My assumption was that it was irrelevant whether both parents or a surviving parent passed away. My role in the situation would be the same either way.

My siblings have not expect any financial inheritance for the past 20 years. I'm only receiving the home and business because I've taken over for family matters for the most part. My spouse and I are expected to be the care takers of our parents.

Wow! What a headache with all the legal issues; I guess its necessary though.

 

[nextwife]

I was hoping/dreaming for a simpler way of deal with this without hiring professional services. My father has always told me that he doesn't see why an attourney or a will is necessary because he is stuck in the mind set that the first son receives his fathers estate as it was done in the old country for centuries. hehe
I'll just have to do some through research on my own.

Just to answer some questions:

My assumption was that it was irrelevant whether both parents or a surviving parent passed away. My role in the situation would be the same either way.

My siblings have not expect any financial inheritance for the past 20 years. I'm only receiving the home and business because I've taken over for family matters for the most part. My spouse and I are expected to be the care takers of our parents.

Wow! What a headache with all the legal issues; I guess its necessary though.

Well, in this country, age and gender are supposed to be irrelevant in inheritance matters.

As to one parent surviving the other, they may need/want the assets of the marriage to take care of THIER care needs. I just lost my second parent, for example, and they died 25 years apart. They both needed a host of professional therapies, radiation treatments, chemotherapies, surgeries, much of which needed to be paid from their assets. Nor could the type of specialized care they, at times, needed, be provided by me or my family. In other words, it is important that the assets of the marriage be there for BOTH of them. Since your parents are NOT legal professionals, nor well versed in the particulars of elder care, or inheritance law, they should really hash this out with a professional.

The RESPONSIBLE thing to do is tackle estate planning with a plan in place to cover the costs of any medical and care needs that they each may encounter as they age. The costs of prescription coverage, medigap coverage, non covered medical, non-covered prescription, accessability aids, plus general needs over their potential remaining life periods should be calculated and budgeted. A professional can plan how to best protect their assets for their family, while providing asset protections for their needs.