Dad, 91, has never asked me to plan for his estate before. To me that's his responsibility. He had gone to see his banker wanting to find a way that I can pay the bills and mortgage while I'm settling his estate.
Best thing I come up with is to make his checking acct (that all his bills and mortgage are autopaid from) and his savings, joint accounts with my name on them. He says that doesn't work because when Mom passed he had to wait to access her accts that he says were joint. We are in Texas. But I googled it and every article says that with a Joint acct when one person passes the other person retains full and sole ownership of the acct. This would solve the issue.
I have lived at home for 3 years and helped take care of them, Mom passing in April. His wish is that when he passes I'd be able to stay here until the estate is settled without spending my own money, I can't afford to be here on my own to be honest.
So do I understand this properly?
Thanks
On small accounts, there is little risk by putting your name on a parent's bank account as joint owner, but if you are sued or divorced, that money may be at risk, unless and until you can prove that money originated from your father and not you.
he has designated his bank accts as POD with my name as beneficiary. His banker says that when I show them the DCert they will close his accts and mail me a check. The issue I see now is that I will be still living in his home getting it ready for sale and looking for my own place. Since all his bills inc mortgage are auto taken from his checking acct and they close that acct....I would be scrambling to setup a new acct and changing the bills to pull from that acct and hoping the check comes before the bills. I would really need them to keep that acct open and really need them to move his other accts into that acct.
Yes, you are correct. No what your dad is telling you isn't true.
When you have a joint account, when one passes the other is automatically sole owner.
Im going through this right now.
If you dont have your name on his account as “joint”, the account with his name only will go into probate for the estate. Unless, he puts you as beneficiary. Then you will have access to the account but you will have to take down the death certificate after he has passed, to the bank, fill out paperwork etc.
A joint account is also guarenteed that the money cant be considered part of “estate funds”. This means that you will ONLY be able to pay bills for the estate with it, any money left over goes to the estate in probate.
With a joint account or you as beneficiary, you can do what you want with the money and the court cant stop you. If the bank account goes into the estate, you have to keep records and be accountable for everything you spend from that bank account.
Also, my advise to you, have your dad appoint you as administrator or exeutor of his estate, now. Otherwise, you have to be court appointed after he passes. Which can take a lot of time. The judge can deny you. Then you have to get a lawyer to fight for you. Do it now. It will save you a MASSIVE headache later on.
Be aware!
Everything needs to be on paper! After they are gone there is no more “he said” My dad said a lot of things before he passed but nothing was ever put on paper, so there was no way to “prove” to the court anything he told me before he passed away.
Does Dad have a Will in place, if not and he can make informed decisions, then get one done. This will make Probate a lot easier. If he dies with no will, then the state controls the situation.
Our neighbors were in foreclosure 2 yrs before the bank evicted them. So, if Dad passes and you can't pay mortgage and taxes it will be a while before your evicted. I just heard of a couple who continued to pay taxes but not their mortgage knowing it would take the bank a couple of years before they evicted them.
Probate should not take that long if a will is in place. You will just need to show that all debts have been satisfied. Follow Dads wishes. If you can't afford the house, then sell it. Then Probate can be closed.
Another thought is that if he is still alive and has money in the original joint accounts with his deceased wife, you could obtain a Power of Attorney so you would have access to the accounts in case he can't do it himself. POA stops on death and that is when you need to show you are the Executrix of the Will and must open an estate account to pay all bills. I would suggest calling an elder attorney as to the best situation where you live to avoid problems.
Dad has a good banker that he has been with for many years and he trusts him. I like the guy myself. When the time comes they will honor the law or there will be legal action. Everything is pretty cut and dried so i dont expect any problems. But if needed I'm not shy about getting an atty and aggressively seeking justice.
do not wait
I contacted one and thanks heavens I did in my state you can have a quick pro quid deed that if he had gone on Medicaid I would not have lost half of the house
sadly he died unexpectedly, but we did have a will in place
does your dad have a will for you you to inherit the house also to leave you any IRA or any other money
it won’t be cheap but I would have lost half of 300K and his money from his IRA
you need expert help to answer your questions
only an ELDER LAW ATTORNEY can answer your questions as a friend found a regular attorney can not know the answers
yes, looking for someone to talk to and making a list of my questions. His financial affairs are relatively simple and he is debt free except for the mortgage on the house. Praying he doesnt have any medical emergencies. But we will get through whatever comes.