If you’re named an executor of an estate, part of your job is to oversee the valuation of assets. So, what does that entail? Finding out how much the estate is worth and how that value is distributed will determine not only your approach to probate, but also the allocation of the assets among the heirs, and how much the estate will pay in taxes. In the case of larger estates, valuation can be a huge responsibility. It may even require you to bring in experts to value antiques and other collectibles.

One thing to note is to expect to be challenged whenever you value assets, by the IRS, by heirs, by creditors or by the court. Be sure you’re valuing everything reasonably.

Certain types of assets are easy to value, such as the contents of a bank account or shares of stock in a publicly-traded company. To value stocks or precious metals, average the highest and lowest selling price for similar items on the date of the owner’s death. For mutual funds, use the closing valuation.

Other assets, such as a used car or collectible, don’t have such a definitive value. You estimate their value by using public references like collectible websites such as Worthpoint.com. When valuing real estate, you can check out the tax assessor’s valuation and talk to a real estate agent about comparable properties in the area.

Go with the pros

Some assets are really difficult to value, like artwork or a private business. For assets like these, you should hire a professional appraiser. Keep in mind that appraisers typically charge between $125 and $400 an hour, and often with an extra charge for visiting the site. It’s a good rule to avoid appraisers who charge based on a percentage of the asset’s value. This goes against the ethics of the Uniform Standards of Professional Appraisal Practice.

You should ask whether the appraiser has any certifications or memberships in professional organizations, and also ask them for a written estimate of the appraisal fee in advance. Among the items that can be listed as household contents are books, tools, and appliances, and you can ask for one overall valuation estimate for them. You may want to get an individual appraisal for any individual items that were specifically bequeathed in the will. The value of household items should be done based on what a buyer would pay for the items as-is.

Should the heirs decide to sell everything in an estate sale, use a reputable estate sale company. Since there are variations in quality and condition as well as changes in economic conditions and local demand, descriptions and values should be seen as general guidelines.

Lastly, a few keynotes as you proceed with the valuation,

1. Be aware of the pitfalls. Heirs could be upset if a particular asset doesn’t meet the value they expected.
2. Document your work in case there are questions later, and work closely with legal and financial professionals as you move forward.

When you’re ready to begin the probate process, call Charles Bendig. With over 40 years of experience practicing law before all Ohio state and federal courts, you can rest easy knowing you’re in good hands. I’ll walk you through every step of the process together.

If named the executor in a Will, you’ll be the final administrator of a deceased person’s estate and have many details to manage. Below is an estate executor checklist that can help you navigate the process while making sure none of your duties slip through the cracks:

Obtain copies of the death certificate. You’ll need them for a number of tasks:

• Filing life insurance claims
• Filing tax returns
• Accessing financial accounts
• Notifying organizations like the Social Security Administration

Ensure that the funeral arrangements are carried out according to the deceased wishes.

File a copy of the Will in probate court. Here’s how to go about it:

• Ask the court to confirm you as a personal representative. Probate court clerks will commonly answer basic questions about court procedures but won’t provide legal advice particular to your case.
• In some courts, staff lawyers will look over probate documents, pointing out errors in your papers and advising you on how to fix them.
• Send notice of the probate proceeding to the beneficiaries named in the will and to close relatives as a surviving spouse and children who would have been entitled to property had there been no valid will.

Locate and secure all assets and manage them during the probate process. This commonly takes about a year and could involve deciding whether to sell property or securities owned by the deceased, depending on the contents of the will as well as the financial condition of the estate.

Close out day-to-day finances:

• Terminate leases and other outstanding contracts
• Notify any government agencies, like the post office, the Social Security Administration, and the Department of Veterans Affairs, of the death
• Notify the bank and credit card company

Establish an estate bank account to hold any money owed, such as paychecks and stock dividends.

Pay any debts that are legally required to pay.

• Notify creditors of the probate proceeding
• Creditors then have a certain amount of time to file a claim for payment of any bills or other obligations you haven’t voluntarily paid
• As executor, it’s your job to decide whether a claim is valid

Supervise the distribution of property to those named in the Will. This includes any cash, personal belongings, and real estate.

An executor will then ask the probate court to formally close the estate when debts and taxes have been paid and all property distributed to beneficiaries. It is advised that you have support from an estate attorney, accountant, investment adviser, insurance agent, and others to file the necessary paperwork.

Some items to note:

• Continue to pay mortgage payments, utility bills, homeowners insurance premiums, and income taxes for the year the person died.
• You may even need to file an income tax return for the full year.

While possibly a bit overwhelming at times, you’ll find that being an executor is a labor of love and is about honoring the deceased and serving the heirs.

I’ve seen it time and time again, someone dies and divides up their assets among family and beneficiaries in a way they believe is fair, only to ultimately have one of the beneficiaries contest their inheritance. Some of these reasons include fraud, suspected forgery, lack of capacity, or even undue influence.

What is Undue Influence?

Undue influence is defined as “excessive persuasion that causes another person to act or refrain from acting by overcoming that person’s free will and results in inequity.”

More simply put, it’s when someone uses manipulative actions or tactics to convince the victim to change financial documents in their favor. Unfortunately, the mentally disabled and elderly are at risk for this type of manipulation.

Oftentimes, this occurs when a family member, caregiver, or close friend unduly influences an elderly person during a time of mental or physical distress to change their estate plans. This is usually not discovered until after their passing and beneficiaries are surprised to find they have inherited less than anticipated or written out of the will completely.

Who can Claim Undue Influence?

Only an “interested party” may bring a claim of undue influence. An interested party is someone who suffers some kind of financial damage from this exertion of undue influence.

For example, there could be a case where a child influences their elderly mother to leave a piece of property to them. Whereas previously it would have been split between all of her children. In this example, only the children left out of this specific inheritance would be considered “interested parties.”

While other family members may be aware of the undue influence and be angered by it, only the damaged parties may file a claim.

How to prove undue influence

The burden of proof in an undue influence case lies with the challenger. It is their responsibility to prove that the will or trust is invalid by supplying proper evidence.

There may not be one single piece of evidence that proves manipulation or influence, but several small pieces that align together.

This evidence may include

• Witness or expert testimonies from family members, caregivers, or healthcare providers.
• Physical evidence such as documents, written or recorded conversations, and previous statements of intent.

Representation for Undue Influence

While knowing the signs of undue influence is the first step to identifying if you have a case, it’s important that you seek the help of a qualified attorney as soon as possible. There is a statute of limitations for when claims can be made and gathering proper evidence before it’s lost or destroyed is essential.

I have years of experience in defending and representing claimants in will contest undue influence cases. Schedule a consultation today to begin discussing your case.

When it comes to blended families, inheritance can get dicey. Tensions run high. With proper planning, you may be able to avoid conflicts. Let’s go over some basic tips:

1. What are your estate planning goals?

With blended families that include stepchildren, things can quickly get complicated. Especially if your spouse isn’t the parent of your children. You’ll probably want to leave any assets to your children and your spouse, but your children may not be old enough to inherit yet.

If you’re incapacitated and unable to make these decisions, your spouse and any adult children may fight over the right to make decisions for you. However, with an estate plan in place, you can not only choose a party to give power of attorney to but also determine whether their biological parent or your current spouse takes custody of them.

2. Review, review, then review again.

Changes happen throughout life. Some of these changes can seriously change your initial goal. For example, when you married, maybe your only concern was your biological children’s safety, but now you have stepchildren who you care for as your own. In that case, it’s time to go back and change your estate plan.

3. Communication is key.

Make sure your children and stepchildren are informed and that the process of inheriting is transparent. Also, discuss it with your spouse and try to be open to their input, but don’t just bend to whatever your partner wants. This is YOUR estate plan.

4. Be Cautious.

Estate planning for blended families has its own unique problems. For example, if the wealthier partner has children of their own, there could be conflicts over an inheritance. If that sounds like your situation, you need to be cautious in your second-family estate planning.

If you’re not remarried yet, get a prenuptial agreement. Discuss inheritance with your partner and get a guarantee from your spouse that he or she won’t contest your plan. If you and your partner are not married nor do you plan to be married, there is also such a thing as a domestic partnership agreement that serves the same purpose.

If you have any gift for your children or beneficiaries, give it to them while you’re still alive. This allows you to have direct control over your funds, not leaving anything to the whim of your executor or trustee. If they’re large gifts, take into consideration that you’ll probably run into the federal gift tax. Also, keep in mind, if you give $15,000 or less to any one person in a year, you don’t have to report it to the federal government.
You should also be thinking about any heirlooms or personal property. You may love and care for your stepchildren as your own, but want family items that have been passed through the generations to go to a blood relative.

You want to be fair to everyone while still being true to what you really want. Give assets according to your values and what you feel is best. Listen to any advice your family may give, but not if it goes against what you sincerely believe is right. These will not be easy decisions, and it’s crucial that you consult with everyone involved, including your attorney and tax adviser.

Contact Estate Planning Attorney Chuck Bendig today.

Most people don’t like to discuss their own demise. Frankly, it’s not the most enjoyable thing to think about. However, drawing up a will or trust allows you to designate exactly where and how you want your assets to be distributed if you pass away. It’s a common misconception that using a trust can save you on estate taxes. In reality, there are other major differences between wills and trusts that could save you time, money, and headaches in other ways. Let’s discuss the advantages and disadvantages of each.

Wills

Advantages: Wills are usually cheaper and easier to create. If you have a smaller estate, the costs of creating a trust could exceed the savings of avoiding probate. Plus, you don’t have to worry about some of the formalities that come with holding your assets in a trust, like retitling any of your assets. Lastly, using a will requires court supervision of your estate, which is helpful if you’re skeptical that your assets would be distributed according to your wishes.

Disadvantages: Wills must be probated. That means a court must supervise the distribution of the assets, making the process more costly as well as time-consuming. In addition, the court documents are public records, so anyone can go to the courthouse to see how your estate was distributed. Also, your will doesn’t take effect until you’re deceased, meaning you can’t use a will to name someone to take care of you if you’re incapacitated. Other documents are needed to do that.

Trusts

Advantages: A living trust allows you to pass your property to your heirs without going through probate, which usually allows for faster distribution than wills. If you have multiple properties in multiple states, a trust can pass the assets without the need for additional proceedings. With a will, you might need to go through subsidiary probate proceedings in the other states as well. Lastly, trust documents are effective immediately, allowing you to include things like end-of-life directives or assign a guardian in the event that you’re incapacitated.

Disadvantages: Generally, trusts have higher preparation costs than wills and they require you to retitle your assets in the name of the trust, taking up time and money. If you don’t retitle your assets, they won’t pass through the trust and instead will go through probate. Also, trusts don’t offer any kind of special asset protection, meaning your creditors can still get assets in your revocable trust.

Estate planning can be murky waters to navigate without the help of an Attorney. When making decisions this important, you need a trusted estate planning attorney to ensure your documents are correct and cover every possible area of your plan. Call Chuck Bendig.