You may need to keep the account open through the tax cycle to pay any estate taxes when you file by April.
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and then keep it open ANOTHER year as assets pop up as “unclaimed” in the state treasurer’s office. The procedure for the executor to claim random amounts is easy with a letter of appointment, a death certificate, and a bank account is easy-peasy.
Once the bank account is closed it gets harder.
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For an estate with just a saving account left, the bank check is a pretty good idea. Wire transfers if you do not have large accounts are $$$. At our credit union a “bank check” is just a different kind of withdrawal slip. Not the same as a cashiers check (which costs $10).
Perhaps ask if the person not cashing checks will take paypal. It is easy to hook up an account to paypal and that receipt is good enough for taxes. I get the sense that you are not talking large amounts so no one is going to be grilling and checking you, including the IRS.
People do not realize how hard it is on executors to have uncashed checks or not closed accounts dangling around. Makes taxes not close for example…
Six years later, I still have one account open under my Mom’s name which is a saving account attached to a bond. I can’t get the bond holder (government agency) to send a letter to accept the account (in lieu of us paying lots more). It has so little interest that we don’t get a 1099 so it sits there. I log on an poke it so that it doesn’t go to the unclaimed accounts. But it bugs the heck out of me. I can’t withdraw the $$ and send it because I need the letter for that, too. But I have looked into just about every way to drain the account and get it closed that one can imagine. As far as i am concerned her estate is closed and the IRS can pound sand if we ever get more than $10 in interest so they become aware the account is open. OH and I can’t change the name to Estate of xx, because again, it doesn’t REALLY belong to us.
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Eso- it might be faster for you to drain it IF it goes to unclaimed. Then you are only dealing with the state treasurer’s office. As long as you have your letter of appointment as executor, death certificate, etc. depending on the state- it might be easier.
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Thanks, blossom. I considered it, but since I want them to take the bond and not charge us for the reclamation costs in full, I need them to have the bond to take! It is really sickening to deal with because both my mom and her second husband were fairly demented. His son, a lawyer got all his assets transferred to himself using POA and rammed the divorce through. My mom said that she’d give her H rights to mine gravel. She was sure he wouldn’t have the gumption. But the son got a contract and mined it and left a mess and didn’t have to pay more reclamation, because that wasn’t in the contract. So her original bond is very small compared to the current reclamation costs. The whole second marriage was a very expensive drain of her resources and this last thing is a sliver under my nails whenever I think of it. The ex husband was stuffed into the CHEAPEST horrible assisted living place in town and died about a year after the divorce. I think the son would have let him die sooner (seriously) except that he was still making money off my mom via his dad.
So maybe that is a cautionary tale for estates, make SURE things are nailed down before a second marriage and never give the lawyer son ANYTHING in a divorce.
Eso, I don’t understand much of your post- except there are no fees associated with claiming assets which have been taken over by the state. There are forms to fill out, but there is no “haircut” on the face value of the assets. The process will vary by state, depending on where the assets are held. Sounds like a challenging situation for sure- but you don’t lose anything off the face value of an asset by claiming it.
Sorry I wasn’t very clear, blossom. Mix of data and venting I expect. I have claimed a bunch of stuff from unclaimed accounts for both parents, so am familiar. It is easy and satisfying actually!
I don’t want this particular account to go to unclaimed status because it is a BOND to the state for reclamation costs. I want it to be completely undisputed that the bond is set for the state to take. I am afraid if I let it go to unclaimed, neither the state nor I will be able to claim it and then the state will come after me for larger reclamation costs.
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Sounds complicated- best of luck to you… and sorry you are dealing with such a painful situation.
bumping this thread, since we’ve had recent general discussion on a more specific estate problems thread
This article has info on a variety of types of trust. I can see why guidance from a knowledgeable estate planning lawyer would be needed.
https://smartasset.com/estate-planning/types-of-trusts
As mentioned, we have simple situation and no need for trust (even though we could have one created for free, perk of our financial advisor group). But I do know of situations where it would be useful.
How to pick a trustee? It seems good to have a neutral party. It’s too big a favor to ask younger friends/relatives. But I’ve read complaints about dealing with bank trustees. Ditto for lawyers. Pricey and cumbersome.