No will equals possible mess!

[softy515]

I think I understand. IF one has a policy with an employer, they would NOT be owner, correct?

 

[softy515]

Hello......

Another question. My father owned property out of state (live in PA, other property in MD). Do we need to open probate in MD also? How will this all work tax wise?

Luckily all the siblings are in agreement as far as the properties there go so no bickering there. There are 4 properties and we have always known that father wanted us each to have one. The forth was for my daughter but then later on my sister had a child and he did say something months before passing about the two granddaughters sharing the forth. So we will probably sell the forth and split the proceeds between the two. We are in agreement with that too. We are not sure when to sell, with the housing market the way it is now but that is another thread.

 

[anteater]

Another question. My father owned property out of state (live in PA, other property in MD). Do we need to open probate in MD also?

Yes, you will need to open what is called ancillary probate in MD to deal with the property there.

How will this all work tax wise?

I think that you need to be more specific about which taxes you are referring to. Real and tangible personal property outside PA is not subject to the PA Inheritance Tax. MD has both an inheritance tax and and an estate tax. But, if I remember correctly, property passing to children is exempt from the inheritance tax. And the first $1 million is excluded from the estate tax.

Information on Maryland Estate taxes

Since your father died without a will, the distribution of his net estate is governed by the intestate succession statutes. Generally, courts are willing to accept a distribution that varies from that if all the interested parties agree. But, if you are talking about a distribution that includes grandchildren, you will want to be sure to discuss things with the attorney that you retain.

 

[softy515]

Yes, we will discuss this with the attorney for sure.

Will we need an attorney in MD too or will the attorney we hire here in this state handle it all? (I know I will find this out when we meet next week, I am just wanting a jump on things)

I highly doubt we are talking hitting a million in the estate.

 

[anteater]

Will we need an attorney in MD too or will the attorney we hire here in this state handle it all?

I highly doubt we are talking hitting a million in the estate.

I'd discuss that with the attorney you are meeting with. I can't speak to MD in particular, but ancillary probate in another state is usually fairly simple. The heavy lifting is opening probate/administrator appointment in the state of residence. It is possible that the administrator could handle the ancillary probate without an attorney. Or the attorney in PA can provide enough guidance so that the administrator can do it him/herself. Or there is the possibility that the PA attorney is also admitted to practice in MD.

 

[softy515]

Later today is our appointment with the attorney.

Any suggestions on the not so obvious things we should be asking?

My understanding is they will charge either hourly or a percentage. Is one typically more cost effective then the other?

 

[anteater]

Any suggestions on the not so obvious things we should be asking?

The more information that you have on the assets and liabilities the better.

Be organized.

I know that you've had some back and forth on the personal representative question. Whoever that may be should arrive at a clear understanding with the attorney concerning who will do what.

My understanding is they will charge either hourly or a percentage. Is one typically more cost effective then the other?

It depends. Relationships between personal representatives and attorneys range from:

1. The personal representative does almost everything, involving the attorney only when necessary - like, say, reviewing the inventory or inheritance tax return, preparing any court filings, etc. All the way to:
2. The personal representative does almost nothing but sign what the attorney places in front of the personal representative.

Obviously in 1), an hourly rate probably works best. And in 2), a percentage might make more sense. I've also known attorneys who will do a "lesser of actual hours at $X per hour or a %" type of agreement. What is important is that it is on paper in a retention agreement and both sides understand it.

I remember you mentioning a potential "rogue brother." You have to consider whether that brother may cause problems and eat up more attorney time.

Oh... And the personal representative should make the lines of communication clear to both the interested parties and the attorney. It certainly isn't a requirement, but I think it works best if the interested parties - aka beneficiaries - understand that communication goes through the personal representative, not directly with the attorney.

 

[softy515]

We are SO lacking on info because until someone is the representative we haven't been able to track stuff down. Sigh.

The rogue brother has changed his tune, things at the moment are peaceful. I haven't heard other wise so at the moment me and sister will represent.

I just feel we have to get this ball rolling. In the meantime we have been busy cleaning and 'organizing' the contents of the house and I have been going through paper work. Mountains of unorganized paper work.... and still have yet to find deeds to any property.

We also have the property to maintain out of state and apparently as my father's health declined, so did the maintenance of those properties and I am finding some nasty letters to him to get things done down there.

 

[tranquility]

I scanned, so did not read it all. The only thing I want to say is to reiterate what others have said:

One administrator.

One.

There are plenty of protections if you don't trust the administrator. However, EACH administrator is in a fiduciary relationship to all the beneficiaries. With two fiduciaries, it often takes two to do some acts and one to do others. Both are responsible for either's action.

With two or more, not only does business not get done unless both agree at many times, but also, one administrator is liable for the other.

One.

 

[softy515]

From all the research I have done, I do agree that it should just be one. And hopefully the attorney today will emphasize the importance of that to my siblings. I do know my sister won't do it alone and both me and her don't particularly trust my brother THAT much yet. God, that leaves me. Granted, I have the most free time due to the nature of my career which doesn't demand I work 40 hours a week.

 

[anteater]

Which brings up another point... If the PR intends to accept compensation for all the dirty work, best to make that clear to the beneficiaries up front. An almost surefire way to get beneficiaries riled up is for the PR to indicate that he/she won't ask for compensation and then, down the road, say, "I changed my mind." (Not that they can do much about it unless the compensation seems unreasonable. But, in a venue that seems filled with abstractions, dollar bills that could be going to the beneficiaries and, instead, are going to the PR are real concrete.)

Even if there is only one PR, that does not mean that your siblings can't assist. But, at the end of the day, the PR is responsible.

 

[softy515]

Oh yes, the compensation. I am pretty sure it will no way amount to anything major, especially if the out of state property doesn't count. If it does, sure, it could amount to a nice sum.

And no matter WHO it is, it is important that we all continue to work together. We all have our strenghts/weaknesses. Me and my sister aren't really capable of hauling away truck loads of scrap metal but are good at sorting through the household items and organizing and cleaning. And eventually when the house is empty we can get to work on cosmetic stuff to make the house more sellable.

Wish me luck later!

 

[anteater]

I don't recall if I pointed you to this website before, but it is one that I like on the general subject of PA probate:

http://evans-legal.com/dan/

And specifically on the topic of PR and attorney fees:

http://evans-legal.com/dan/estfees.html


EDITED TO ADD: Ooops... Remember that compensation is considered taxable income.

 

[softy515]

That is a great site! I like to have a timeline when I have a complicated task to do. Thanks!

 

[softy515]

OMG I feel SO much better now.

Met with the attorney. Nice guy. We are letting him do lots of it, and it feels like a ten ton rock is lifted from my shoulders.

My bro agreed to me and sis being executors.

There was no mention of us getting compensated. I will bring it up though.