When a Will Isn’t Enough to Avoid Conflict: Remember Your Personal Property

“When the parents are gone, there’s all kinds of unforeseen stuff they leave us with, stuff they never intended.” – Ira Glass, in This American Life, Episode 763: “Left Behind”

If you grew up with siblings, you probably remember some sibling rivalry. That rivalry can continue well into adulthood, especially after the parents are gone. In many families, parents are like the glue that keeps the family together. Once their gone, old issues can resurface, especially when it comes to dividing the parents’ personal property.  That’s why it’s important to have a plan for how you want your personal, sentimental property distributed to the people that you love. If you don’t, that can make an already tough situation so much worse.

This American Life, a popular podcast, recently featured a family with such a story. Eleven adult siblings needed to divide their dead parents’ stuff. But they didn’t all get along. Although their parents (who were both attorneys) had wills, they didn’t list in their will which child would get which items. They left all that to the kids, saying simply, everyone should get an equal amount. So the siblings invented a remarkably elaborate cheat-proof system to divide up the remains of their childhood. In the end, it was a system that played off the siblings’ natural suspicions towards each other and did nothing to bring them closer together after losing their parents.

Here’s a quote from the narrator:

“What they have left to them is just these things, right? And this mandate– to get along well enough one last time to split it up amongst themselves. And they don’t want to screw it up. They want to honor their parents’ last request. But they know it’s going to be tough for them, given how they are sometimes with each other.”

This is an example of incomplete planning that can lead to conflict after you’re gone. If the parents in this story had left a personal property memorandum that referred back to their Wills, that could have reduced the strain on their children, especially the estate’s executor. It would have also saved a lot of time and conflict….and their relationships with each other.

You can listen to this story (16 minute run time) here.

Or you can read the transcript here. 

 

This article is a service of attorney Myrna Serrano Setty. Myrna doesn’t just draft documents, she ensures you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why Myrna offers a Planning Session, during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. Call our office today to schedule a Planning Session. Mention this article to find out how to get this session at no charge. Call us at (813) 514-2946.

Check out another blog post about embracing the emotional side of estate planning. Here

Update: Aretha Franklin’s Estate. 3 Handwritten Wills Found

In August 2018, music legend, Aretha Franklin, died of pancreatic cancer. At her death, her estate was worth over $80 million and it appeared that she died without a will or trust.  (We wrote about this in this article here.)

Recently, we learned that three handwritten wills were found in her home. The latest one is dated March 2014 and it was found inside a spiral notebook, under cushions. The document appears to give the famous singer’s assets to family members. However, the writing is difficult to decipher and there are words scratched out and notes scribbled in the margins.

It is unclear if this is a valid will under Michigan law.  A court hearing is scheduled next month to determine the validity of that document.

Even if the Court determines that the will is valid, there’s still the issue of federal taxes. The Internal Revenue Service is auditing many years of Franklin’s tax returns, according to the estate. It filed a claim in December for more than $6 million in taxes.

Ms. Franklin’s family remains hopeful that wise choices can be made on behalf of her rich legacy, her family and her estate.  Sadly, we may never know what her wishes were.

This article is a service of attorney Myrna Serrano Setty. Myrna doesn’t just draft documents. She ensures you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why Myrna offers a Planning Session, during which you’ll get more financially organized than you’ve ever been before, and make all the best choices for the people you love. Begin  by calling our office today to schedule a Planning Session. Mention this article to find out how to get this $500 session at no charge.

Call us today at (813) 514-2946 to get started.

Will Your Estate Have a Password Problem?

We live in the digital age. Having online access to investments is a great convenience. But the downside is that they can create a very difficult situation for a surviving spouse or executor trying to find the deceased’s assets.

What is the first thing you are told about any password? Don’t write it down. This can create unintended consequences for an executor who needs access to each account in order to marshal the assets and eventually distribute those assets to the heirs or trustees based on the language contained in the will.

When the founder and CEO of a Canadian cryptocurrency exchange, QuadrigaCX, died unexpectedly, nobody else had the password to the exchange’s cold storage locker. That cut off access to investors’ $190 million in cryptocurrency.  Those investors may never see their funds again. This is a an eye-opening example of how the security system designed to keep hackers out of an account can work against the owners of funds.

Estate administration in the digital age requires having a strategy to share passwords to your computer, email and online accounts. Without that, things quickly get complicated.

Option #1 Give your passwords to a trusted family member.

This is probably the easiest, but least secure way. They will need passwords to access your computer or smartphone. They will also need a password to access your email — which is where electronic financial statements are traditionally sent. This creates a potential security issue and also doesn’t provide the trusted person with access to each individual financial platform, which would require each of those passwords to be written down or somehow saved and communicated to the trusted person. Many computer operating systems now save passwords to frequently visited websites, so it is possible that if a trusted person had access to your computer, they may also be able to gain access to your financial accounts.

Option #2 Write down and place all passwords in a safe deposit box.

Your executor or guardian/attorney-in-fact through a power of attorney can access your safe deposit box and your passwords to access your computer, email and financial platforms. This option is somewhat safer than simply writing down and providing passwords to a trusted friend or spouse. But this means you have to be diligent about updating the password list. People rarely keep such printed out lists updated. But if you’re disciplined enough to do this, this might work.

Option #3 Use a digital wallet.

A digital wallet is the most secure and by far the most recommended way to safely and securely store passwords. Like a real wallet, a digital wallet keeps track of all your passwords across all your devices and does so in an encrypted file in the cloud. With this, the only hurdle is the password with which you access the digital wallet.

This would require that you keep a record of the master password somewhere, or perhaps you can agree with your spouse or trusted friend on a pattern of passwords. That could be anything that the two of you can easily remember, along with perhaps a few other characters. It will need to be something that can be remembered and not written down. Writing down and saving passwords should be avoided if at all possible.

This article is a service of attorney Myrna Serrano Setty. Myrna doesn’t just draft documents, she ensures you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why Myrna offers a Planning Session, during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. Call our office today to schedule a Planning Session. Mention this article to find out how to get this session at no charge.

Call (813) 514-2946 to schedule your Planning Session.