My Dad Died Owning Stocks – What a Pain That Was!

April 1, 2014

Filed under: Financial,Probate — Alexis @ 10:18 AM

If you have ever had to deal with stocks that you inherited, then you know what a pain it can be to change ownership over to your name.

You probably had to:

  • Figure out which stock transfer agent was managing those shares (ex. Computershare),
  • Figure out which forms that transfer agent needed you to fill out,
  • Go to your local bank to obtain a “medallion stamp signature guarantee” (and there is usually one person per region authorized to make that stamp, so you had to wait until the day that person was in your local branch),
  • Mail those forms to the transfer agent,
  • Wait for proof of your new ownership to arrive,
  • Find the value of the stocks on the date of death,
  • Find the value of the stocks on the date they were transferred to you, and
  • Report those last two items to the probate court.

What a pain!

Consider sparing your family such a headache.  If you own individual stocks, take action now to help your family out later.  For most people, listing family members as “beneficiaries” or “payable on death to” will do the trick.  You do this by: (1) figuring out which stock transfer agent manages your stocks, and (2) downloading appropriate forms from their website, completing them, and mailing them in.

For example, if you have a spouse and three children, then in most cases, you would name your spouse as the first beneficiary, and in case she predeceases you, name your three children as equal beneficiaries in the second position.  When you die, your spouse, or your children, if your spouse doesn’t survive you, will download the appropriate forms from the stock transfer agent’s website, mail those in along with a death certificate, and the transfer agent will send out proof that the beneficiaries are the new owners of the stocks (or a check, if the beneficiaries prefer).

That’s it.  No chasing down the manager at your local bank for a signature, no reporting to the probate court.  Just a few forms in the mail.

A caveat: If you have a taxable estate, a special needs child, predeceased children, children who don’t speak to you, or anything else that makes your situation unique, then adding beneficiaries to stocks without professional guidance may not be a good idea.  If you have any unique situation, then speak with an elder law or estate planning attorney before changing your stocks.  In addition, if you have met with an attorney who has crafted an estate plan for you, then check with her on whether to name beneficiaries.  But for most people, adding family as beneficiaries is the right thing to do.

Whatever you do, don’t add other people as joint owners on your stocks!  See this post for why that approach can cause a lot of problems.  It’s rarely a good idea.

A little work by you now will save your family a lot of work later. And if you need help determining whether and what to do with your stocks, please let us know.

Heard in the Office: “My Mom Named Me ‘Executor’ in Her Will and the Court Sent Me Some Paper about Being ‘Personal Representative.’ I Don’t Get It.”

July 31, 2012

Filed under: Probate — Alexis @ 3:13 PM

Huge vocabulary switch, it’s going to take all of us a very long time to get used to.  This spring, the legislature cleaned out 200 years of laws concerning how we probate wills and estates and replaced those laws with a brand new set called the “Massachusetts Uniform Probate Code” (MUPC).

One of the many (many!) changes under the new MUPC is basic vocabulary.  The person that you name in your Will to manage everything after you die is no longer called an “Executor” but instead a “Personal Representative.”  So even if your parent named you “Executor” in her Will, the papers you receive from the court will use the term “Personal Representative.”  Same job, just a new name.

My Spouse Died – What Do I Need to Do to Protect Myself?

July 24, 2009

After a spouse dies and the family gets through the funeral, the immediate concern is to square away the couple’s assets and make sure the surviving spouse has enough to live on. After that, there is one more step to take: protecting yourself.

One area where you need to be proactive is to consider who will be able to assist you with financial and health matters if you become ill or incapacitated. Before, you and your spouse relied on each other to serve in these roles. Now you need to legally appoint someone to be able to step in and help you. At this point, you definitely need to execute a Durable Power of Attorney and Health Care Proxy. And many people like to add a child to their bank account so she can easily help with paying bills. See my blog post on how to do this appropriately (don’t add her as a joint owner!).

If you go to see your elder law attorney after your spouse has passed away, in addition to helping you transfer your spouse’s assets to your name, she will also help you put in place these fundamental documents that will serve to protect you, should you ever become unable to handle your affairs or medical decisions yourself.

My Spouse Just Died – What Do I Need to Do with Our Assets?

Filed under: Probate — Tags: , , , — Alexis @ 10:53 AM

Clients often come in bewildered about what they need to do with bank accounts and other assets after a spouse has passed away. People are always the most concerned about the home.

The good news is that there is usually very little to do. Spouses typically hold most of their assets “jointly.” This means that both are equal, complete owners. If you and your spouse held your checking account jointly, it is now yours – just like that, there is nothing you need to do. Same goes for stocks, CD’s, the home, anything that you held jointly.

As for assets that your spouse held is his name alone, you will need to take some steps. If your spouse held a small bank account in his name alone, usually going to the bank with a certified death certificate will be enough, and the bank will issue the funds to you. As for anything with a beneficiary listed, like IRA’s, 401(k)’s, and life insurance policies, you will need to obtain the appropriate forms from the financial institutions, mail them in with a certified death certificate, and they will issue a check with the proceeds.

Typically a will does not need to be probated when one spouse passes away. It’s a good idea to meet with an elder law attorney. Bring in a list of all the assets you both hold, with copies of bank statements and other proof of ownership, and the attorney will help you sort out what needs to be done.  Yesterday I met with a client for just one hour and he walked out feeling confident in his understanding of the few steps he has to take to square away his deceased wife’s assets. That’s one hour well spent.

See my next blog on steps you need to take to protect yourself, now that you are single.