Posted: Thu Sep 11, 2008 12:28 am Post subject: Probate Court with no will
Our Mother died recently and had my name on her life insurance, retirement/IRA/and a mutual fund account, she and I were joint on car titles. I cared for my Mother and my twin sister whom I have guardianship for for years. I have two older sisters whom didn't help out much in the care for Mom...
I am wondering, I used the monies (some of them, not all of them) to pay her credit card bills which she had me on as authorized user to help me out so that I was not using all my money to care for my twin sister and her.
I have two older sisters whom are now mad that I was left as beneficary and used about 20% of this money to pay off the credit cards..
Is this wrong??? My lawyer said as long as I did it before a PR person was named, then the two older sisters can't really say anything...
My Mother owned her house with no mortgage on it, but died without a will so the only thing I'm being told that goes into probate is the house.. _________________ Register Now to have your Insurance queries solved.
My Mother owned her house with no mortgage on it, but died without a will so the only thing I'm being told that goes into probate is the house.
That's correct.
The other things you mentioned, "life insurance, retirement/IRA/and a mutual fund account" are either contracts with beneficairy designations or joint ownership. Those types of asset ownership are NOT part of the probate estate.
What determines whether or not an asset goes through probate is how it's owned at the time of death. ONLY individually owned assets where the deceased person is the sole owner enters probate court.
Your mother had very typical fragmented estate plans and your other siblings are going to be shocked when they learn they will receive only their share of the proceeds from the house (after attorney fees, court costs, probate bond, and other expenses) and nothing from the other assets.
Regarding the credit card, since your name is on it you are legally liable for that bill regardless of what was charged or for what purpose. Had just your Mom's name been on the credit card then the bill would have been paid from the proceeds from the "Probate Estate" if any, and in Florida your homestead is EXEMPT from creditors.
Also, while most of the cash asset your Mom had escaped probate this only worked because everyone died in the right order. Had you predeceased your Mom, then she died, EVERYTHING would have ended up in the probate court system.
If your mother would have had a properly funded Revocable Trust nothing would have entered the probate court system. _________________ Gary Spicuzza, *SAFE
Copyright 1956.
No rights reserved.
*Self Appointed Financial Expert
Well, I believe that in this country people can work on their free will, hence, if your mother has named you as the sole beneficiary of the policies, then the other two sisters have nothing to complain.
As long as you are the named beneficiary, you will receive the policy benefits. And if the other sisters don't agree with this arrangement they can move to the court against it, but that's altogether a different issue.
Unless the siblings can PROVE, fraud, duress, undue influence or mental incompetency AT THE TIME THE POLICY WAS ISSUED
OR
fraud, duress, undue influence or mental incompetency in the filing of a Beneficiary Change Form a suit challenging life insurance beneficiary designations will NEVER prevail. _________________ Gary Spicuzza, *SAFE
Copyright 1956.
No rights reserved.
*Self Appointed Financial Expert
