The Life of a Connecticut Executor

Most people are honored to find out that they have been appointed as the Executor for someone’s will. However, there seems to be a near-universal underestimation of what that role entails. Below is a list of tasks that need to be on every Executor’s radar screen as they work their way through the probate administration process. The list is by no means exhaustive. The purpose of this post is not to provide a collegiate-level seminar on how to manage an estate. The goal is to help you appreciate what the job entails before you appoint an Executor in your Last Will & Testament. As you will see, this is not a role in which everyone will thrive, and you should avoid appointing the wrong person.

• Collect Assets. Figure out if the decedent had bank accounts, investment accounts, retirement funds, life insurance, real estate, automobiles, valuable personal effects, etc. Then take control of those assets.

• Real Estate. Lock up and secure the property, make sure the heat is on to avoid frozen pipes and continue to pay insurance premiums until it’s turned over to the beneficiaries.

• Cars. Keep them locked and don’t let anyone drive them while they are in the estate. If someone drives them around and gets into an accident, then the estate may be in trouble.

• Personal Stuff. There’s a chance that the decedent’s tangible personal property (a.k.a. “stuff”) could be an important issue to address. In most cases, the family doesn’t care about any of the stuff and a majority of it gets donated or thrown out, or the family peaceably distributed everything without the need for the Executor’s involvement. But every once in a while, World War III will break out over a family heirloom (often an item that has little-to-no financial value). So, the Executor should quickly figure out if any items fall into this category. If so, it should be secured right away before someone walks off with it

• Last Income Tax Returns. Connecticut and Federal income tax returns are still due April 15th even though the taxpayer has died. Hopefully the decedent had an accountant that prepared prior returns and he/she can help you with this task.

• Keep the Peace. A sudden financial windfall can bring out the worst in people and it’s not uncommon to have an Executor who is forced to deal with beneficiaries who are complaining about some aspect of the probate administration (how long the process is taking, whether the sale price for the house is fair, who gets the photo album, etc.). So, it’s up to the Executor to be a good diplomat and keep everyone happy, or at least happy enough to avoid litigation.

• Deal with the Probate Court. In the world of probate, it’s like an employer-employee relationship in which the Probate Judge is the employer and the Executor is the employee. This means that the Executor is accountable to the Judge and must ask for permission to do certain things, such as selling real estate (unless the will waives the need for court approval). It also means that the Executor can be “fired” by the Judge if she doesn’t fulfill her responsibilities. So, it’s important to dispel yourself of a common myth about probate; the Executor is not the boss. The Judge is.

Again, this is just a short list of many (not all) tasks for the Executor to address during the probate administration process, which usually takes several months. So, when you are preparing your last will and testament, pick an Executor with the right temperament and skill set. You should also make sure that person is aware of what the job entails and agrees to take on the role.

DISCLAIMER: This blog does not offer legal advice, nor does it create an attorney-client relationship. If you need legal advice, consult with a lawyer instead of a blog.

Estate Planning: A Tale of Two Celebrities

Prince, the iconic American musical artist, died in 2016 and inexplicably left no last will & testament. This is despite having an enormous estate which is reportedly in the neighborhood of $300 million. Suffice it to say an epic legal/probate mess quickly ensued and Prince’s estate will most likely not be wrapped up anytime soon. Click here for an online article from Money for all of the gory probate details.

Another celebrity from my boyhood days in the 1980’s, Luke Perry, died unexpectedly from a stroke on March 4th. Despite his relatively young age of 52, it looks like he actually had a solid estate plan in place. Not only will this make it more likely that his estate (estimated at around $10 million) will be distributed and wound up in an orderly manner, but his advance medical directives presumably made the difficult situation at the hospital go much smoother than it may have otherwise. Click here for an online article from Forbes for the details.

Well, reading about such famous people from my childhood passing away makes me feel old. On the upside, this comparison of how two well-known celebrities planned ahead (or didn’t) provides us with a good illustration of why estate planning is so important, whether you’re famous or not.

3 Reasons to Get a Will if You Have Minor Children

If you have young kids, it’s possible that you don’t have a huge estate yet, so there may be no sense of urgency to sign a last will & testament. Why do any estate planning if there’s no estate to plan for, right?

Well, there are at least three big reasons to get a last will & testament in place.

The first reason, which most parents are at least vaguely aware of, is to appoint guardians. It’s not fun to think about, but if you suddenly disappear and you have a minor child then you will need someone to take over to make personal, medical and educational decisions for your child. Your appointment of guardian is made in your will. If there is no will, then it’s up the court to appoint someone as guardian. In some families, the choice is relatively obvious. But in many families, it’s not. And in some families it’s clear that World War III is going to break out over who will become guardian if there are no legal instructions in place. Don’t leave this potential landmine behind for your child and family. They will be going through enough turmoil as it is.

Secondly, you will probably want someone to manage your child’s inheritance for her if she is over the age of majority but still relatively young when you pass away. For most clients, the age range for this is 18 to 25. In other words, a child over the age of 18 (in Connecticut) is legally competent to manage her own inheritance, but she may not be actually competent to do so if she is under 25. Most folks under 25 don’t have a lot of investment experience and could potentially be easy prey to scam artists. If you’re shrugging this off because you don’t think your estate is very big then think again, particularly if you have life insurance. It seems like nearly all of my clients end up underestimating the size of their estate by a good amount.

Third, and perhaps most importantly, you’ll simply feel like a responsible and diligent parent. I’m certainly not trying to lay a guilt-trip on anyone who hasn’t attended to this yet. As a father of three young boys myself, I know first-hand how crazy the schedule can be with young kids. But yearning for some peace-of-mind seems to be what drives most of my clients with minor kids to come in and get their wills done.

DISCLAIMER: This blog does not offer legal advice, nor does it create an attorney-client relationship.  If you need legal advice, consult with a lawyer instead of a blog.

The Ever-Evolving Last Will & Testament

Many of my clients tend to procrastinate when it comes to finalizing their estate planning documents. They struggle over who to appoint as guardians for the kids, or who should be the "back up" executor if the surviving spouse can't act, or who's going to end up with the tool collection.  Sometimes these questions can be tough ones and people "freeze up" and stress out over whether or not they're making the right decision.

As the estate planner I'm always concerned that the infamous bus is going to run my clients over while the drafts of the wills sit on my desk, unsigned.  So I try to gently nudge my clients along towards finalizing everything. 

One factor that I try to impress upon my clients is the fact that their wills are not set in stone; that they should conceptualize their wills as "evolving documents". In other words, as developments occur in the family (if people pass away, someone becomes disabled, someone gets divorced, there's a "falling out", etc.) it is very easy to tweak the documents in order to address the new family situation.

I also emphasize that, thanks to computers, tweaking the documents is very easy and very inexpensive, assuming that the changes are not overly-complicated.  I always keep the documents on my computer, so re-printing the documents with small changes and a new date and re-signing everything is awfully easy. And there is nothing exotic about my law practice; this is the case with just about any law practice out there. 

So, don't stress out about it too much when you set up your will and other documents.  Make the best decision you can given the current circumstances and facts.  Then schedule a signing date with your attorney knowing that you can easily change things later if you need to. 

And remember that once your documents are signed you will experience a wonderful, liberating "peace-of-mind", and that's what estate planning is all about.

DISCLAIMER: This blog does not offer legal advice, nor does it create an attorney-client relationship.  If you need legal advice, consult with a lawyer instead of a blog.

Tips on Where to Keep Your Will

This is one of those standard questions that nearly every client asks me after their will or living trust is finally executed, and it is a vitally important question.  I have more than enough stories about the angst and chaos that has ensued when families cannot locate the original will after a loved one passes.

First thing's first: I'm not a fan of keeping your will in a safe deposit box at a bank even though most clients assume that is the best place.  Unless you have someone else's name on the list as a signatory, it is very difficult (albeit not impossible) for someone else to gain access to the box.  Also, even if the family knows that you have a safe deposit box, it is sometimes difficult for the family to determine which bank and at which branch the box is located.  Those tiny, little keys don't really tell you anything, other than the fact that it opens a safe deposit box somewhere.

What I usually tell clients is that they should keep their wills wherever they keep their other important documents. That location is different for every client, but if the family knows that all of the important stuff is in your file cabinet, or a strong box, or your bottom dresser drawer, or the freezer (I did have one client who argued that that was the most fireproof place in his house) then it shouldn't be a problem for your loved ones to find your will upon your passing. 

Ideally, having your will in a strong box at home (with your other important documents) is the best arrangement since such boxes are usually fireproof.  But don't panic if you don't have one since the chances of a fire that completely destroys your house and everything in it are quite slim. You should also keep the box unlocked for ease of access. Trust me...a third party will have no interest in stealing your will since it has no value on the open market.

However, if you have one of those families in which good chemistry is somewhat lacking, and there are some family members who may be motivated to destroy your will, then you may have to be a little more secretive.  In fact, the safe deposit box at the bank with a trusted person as a co-owner would probably be the best way to go in that type of situation.

DISCLAIMER: This blog does not offer legal advice, nor does it create an attorney-client relationship.  If you need legal advice, consult with a lawyer instead of a blog.