Any tax/estate lawyers?

[SField]

Someone in my family, quite dear to me, died overseas in a very bad car wreck. The will has most of what they had left to me.

There are two issues, but the 2nd is what I'm more interested in;

1) They had one child who absolutely hated them, stole from them, and didn't speak to them for over 10 years. This child (my age) is quite simply a horrible person and doesn't deserve any of it, although they were named in the will and did receive something. What legal standing do they have, if it was left to me? I am seeing a lawyer on Monday about all this, but I'd like to go in just a little bit prepared. I am considering setting up a trust to rehabilitate the little moron but that's all I'll consider.

2) Last Tuesday, Obama held that press conference where he said he was going to roll back tax credits on certain income brackets when it comes to charitable giving. Something in excess of 10% if I recall. When will these take effect?

I don't really plan on keeping money, I'd rather like to do something positive with it. She left me some furniture that I'll keep, and a small beach house. Do I get hit with the 'death tax' upon taking possesion, or if/when I sell these (unlikely that I'll ever sell)?

Thanks for the help. Like I said, I will be getting professional help Monday, but I want a little preview of what I can expect. This comes at a weird time since I have some other big life decisions comming up, and I want this taken care of soon.

 

[Mr T]

I am sorry for your troubles.

 

[Tardek]

Originally Posted by Mr T

I am sorry for your troubles.

+1

Sadly can't give you substantive help, I don't specialise in the field and I'm not American.

 

[Mr. Caber]

Is the other inheritor a minor? What state do you live in, and what state was you relative from? The laws vary a bit depending on the locale.
Sorry for your loss.

 

[crazyquik]

Originally Posted by SField

Someone in my family, quite dear to me, died overseas in a very bad car wreck. The will has most of what they had left to me.

2) Last Tuesday, Obama held that press conference where he said he was going to roll back tax credits on certain income brackets when it comes to charitable giving. Something in excess of 10% if I recall. When will these take effect?

Obama may want to change the limits on charitable deduction, but he will have to get that through staunch opposition in Congress. This should be pretty low on your priority list. He is basically fighting every university, non-profit, museum, etc in the nation on this issue.

You may actually need to enlist multiple professionals; one attorney who specializes in wills that are challanged in court (if the child decides to challange the will), and another for the tax issues. If the child is really such a horrible person, and is sore that they didn't get the lion's share of the estate, they may want to litigate the will.

Your will recieve a step-up in basis on the beach house to current fair market value. http://en.wikipedia.org/wiki/Stepped-up_basis

 

[SField]

Originally Posted by crazyquik

You may actually need to enlist multiple professionals; one attorney who specializes in wills that are challanged in court (if the child decides to challange the will), and another for the tax issues. If the child is really such a horrible person, and is sore that they didn't get the lion's share of the estate, they may want to litigate the will.


This is what worries me. I want to basically give her entire estate to her alma mater, which she really loved, and to a hospice she supported. I don't want to do that knowing that this person (who is in their late 20s) could contest the will. I guess it could wait, but it would be nice to have this done with.

 

[Connemara]

Very sorry to hear that Field. Hope you're doing OK.

 

[jagmqt]

Originally Posted by SField

Someone in my family, quite dear to me, died overseas in a very bad car wreck. The will has most of what they had left to me.

There are two issues, but the 2nd is what I'm more interested in;

1) They had one child who absolutely hated them, stole from them, and didn't speak to them for over 10 years. This child (my age) is quite simply a horrible person and doesn't deserve any of it, although they were named in the will and did receive something. What legal standing do they have, if it was left to me? I am seeing a lawyer on Monday about all this, but I'd like to go in just a little bit prepared. I am considering setting up a trust to rehabilitate the little moron but that's all I'll consider.


I'm not sure what you're asking.

Are you saying the child was named in the will, and you would like to prevent the child from receiving the gift? Or are you saying that the child may try to take what was left to you in the will?

jag

 

[Concordia]

You need a lawyer to sort this out, but I believe that if the devil's spawn child was mentioned in the will, he can't argue that he deserves a large cut because she forgot to mention his name. Case law probably varies, but I know that often wills award $1 or some nominal amount to a close relative being disinherited precisely so they can't contest.

Estate tax (if it was a death tax, everyone would pay it) is levied on the estate. So the estate winds through probate, pays its taxes, and makes its distributions free and clear. Valuations are generally based at date of death or one year later, if more convenient. If you get a piece of furniture and sell it immediately there should be essentially no capital gains tax. And no other tax relating to the estate.

I don't know if you have children or want to do anything for them. Right now we have an unusual confluence of low interest rates and low asset prices. Normally, it doesn't happen that way. So if you're charitably inclined and want to leave something for your descendants, a charitable lead annuity trust (CLAT) is relatively inexpensive to set up right now.

 

[SField]

Originally Posted by jagmqt

I'm not sure what you're asking.

[Are] you saying that the child may try to take what was left to you in the will?

jag

Yes.

 

[SField]

Originally Posted by Concordia

You need a lawyer to sort this out, but I believe that if the devil's spawn child was mentioned in the will, he can't deserve that he deserves a large cut because she forgot to mention his name. Case law probably varies, but I know that often wills award $1 or some nominal amount to a close relative being disinherited precisely so they can't contest.

Estate tax (if it was a death tax, everyone would pay it) is levied on the estate. So the estate winds through probate, pays its taxes, and makes its distributions free and clear. Valuations are generally based at date of death or one year later, if more convenient. If you get a piece of furniture and sell it immediately there should be essentially no capital gains tax. And no other tax relating to the estate.

I don't know if you have children or want to do anything for them. Right now we have an unusual confluence of low interest rates and low asset prices. Normally, it doesn't happen that way. So if you're charitably inclined and want to leave something for your descendants, a charitable lead annuity trust (CLAT) is relatively inexpensive to set up right now.

This donation would be in her name.

I am considering setting up a trust or some type of funds for this kid who I'm now going to try to help. (He's actually a year younger than me). He was given an enormous monthly allowance until he was 22, and then he was cut off. Once his friends stopped paying for his lifestyle he conned some people on Fire Island and stole from his mother. I will see if I can help him become something respectable, and even then I feel like I'm doing much more than I have to. I suppose that I'll set aside some funds for this purpose and dispense of them as I see fit.

Do academic institutions allow one to specify what the funds should be for?

Thanks everyone for your kind wishes.

 

[Concordia]

Originally Posted by SField

Do academic institutions allow one to specify what the funds should be for?

.


Within limits. Creation science at Harvard is probably a non-starter. And if you want too much control over hiring (or want it vested in an unpopular administrator), you might have the donation returned. But you can endow professors' chairs, scholarships, travel fellowships, stained glass in the chapel-- there are funds for pretty much everything at an endowed university (or school or college).

Don't expect too much in trying to reform this kid. It's really hard to set incentives in a trust document that can keep someone from being a total ****.

 

[Aperipan]

Originally Posted by SField

I am considering setting up a trust or some type of funds for this kid who I'm now going to try to help. (He's actually a year younger than me).

It reads like you're basically trying to take what's not yours. When I read your post, I had the impression the "the kid" was a minor and for that you're entrusted with the responsibility to direct the will. However, you just stated that you are in your late 20s, which would then corroborate the deduction that he too is in his late 20s, and thereby should be given the same "rights" to do with the amount willed under his name. Not sure if I get this right and my condolences for your loss.

 

[warmpi]

Originally Posted by Aperipan

It reads like you're basically trying to take what's not yours. When I read your post, I had the impression the "the kid" was a minor and for that you're entrusted with the responsibility to direct the will. However, you just stated that you are in your late 20s, which would then corroborate the deduction that he too is in his late 20s, and thereby should be given the same "rights" to do with the amount willed under his name. Not sure if I get this right and my condolences for your loss.

I don't think this is the case. From what I can gather:

SField's family member has left him with the larger portion of the inheritance. The brat has a minor share of the inheritance, and being the selfish brat he will likely pursue legal action to get more. This is SFields concern, and is asking for what recourse he might have should the brat litigate.

The trust that he's thinking about establishing for the brat would be from his own share, and not from the brat's share.
IMO, SField is being too generous. People who have lied, stolen, deceived.. do not deserve any sympathy.

 

[SField]

Originally Posted by Aperipan

It reads like you're basically trying to take what's not yours. When I read your post, I had the impression the "the kid" was a minor and for that you're entrusted with the responsibility to direct the will. However, you just stated that you are in your late 20s, which would then corroborate the deduction that he too is in his late 20s, and thereby should be given the same "rights" to do with the amount willed under his name. Not sure if I get this right and my condolences for your loss.

You don't have it right, and should consider taking a refresher course on the english language.

A) I don't plan on keeping any money.
B) Basically everything is being given to an academic institution and a hospice.
C) I simply don't want him to contest that amount that she left to me, because he's the type of person who would.
D) He has proven to be criminally irresponsible, and a sociopath