Smart Money: Reciprocal will would cover nearly $1M estate

Dear Bruce: I am 68, and my wife is 64. We have a home, office building and small tract of farmland valued at $450,000. We have $140,000 cash value in our life insurance. Our individual retirement accounts are in mutual funds worth $175,000. We have other investments totaling $65,000. We have two sons and five grandchildren. Their estates are much larger than ours. We have a will that goes to either spouse upon the death of one, and it is to be divided equally between our two sons if something should happen to us at the same time. I have been advised to set up a trust fund. Your advice would be greatly appreciated. —J.G., via e-mail

Dear J.G.: You guys are in good shape. You have a reciprocal will, where everything goes to the surviving spouse should there be one, and your estate goes to your sons if you both are not in the picture. I assume that you and your wife are each other’s executor and one or both of the sons will be appointed executor should the unthinkable occur. I see no reason for a trust.

Probate court holds answers on mother’s estate

Dear Bruce: My mother passed away last fall. Another member of my family is the executor of her will. After following her wishes to sell the house and everything in it, the process has come to a standstill. Any monies remaining after expenses were to be divided among the children. None of this went through the courts, so nothing should be left to take care of except to disburse the money. The executor has neither contacted at least two family members nor will he take a call from them. This has been going on for nine weeks. Am I being inconsiderate of how long we should mourn before going on with the last part of this process? —K.O., via e-mail

Dear K.O.: Nine weeks is pretty quick to get rid of the house and all of its contents. It would seem that things are moving along. You say that none of this went through the courts, but in order to have official standing as an executor, the will had to be filed for probate with the probate court. The executor has obligations under the law. If you are not sure that he’s following them, your first redress is with the clerk of the probate court or the surrogate. It is their job to see that he follows the rules and wishes of the testator, your mother. There are formalities he has to adhere to, and the court will see that he does that. If he has sold the house and had the proper standing, then the will has been filed for probate. If he is not willing to talk, your next stop should be the probate court.

Laws protect landlords and tenants

Dear Bruce: We have some rental properties, and for the first time, we are having problems with someone who won’t pay. We have given notice, sending a certified, registered letter that asks her to leave by the first of the month. However, she has not picked it up yet at the post office. We know we can go to our attorney and have papers served. Even though our agreement says she is responsible for those expenses, we know she won’t pay them. We still have her deposit. Can you offer any suggestions on how to get her out? At this point, we know we probably won’t get the money; we just want her gone. —Reader, via e-mail

Dear Reader: From time to time, a landlord has to use the services of an attorney, and this is one of those times. Don’t do this by yourself. If you go it alone, you can incur liability even though you are dealing with a deadbeat. In some jurisdictions, an eviction can be accomplished in a matter of days; in others, it can take many months. One thing is certain: The courts say that even deadbeats have rights.

Attorneys safeguard homebuyers

Dear Bruce: You always say to retain a lawyer when buying a house. Why? What specifically should the lawyer do that the closing attorney isn’t already doing? —M.I., via e-mail

Dear M.I.: First of all, who is the closing attorney? Who is paying for him? With whom does his loyalty lie? Most lenders would have the buyer pay for the bank’s attorney to protect the bank’s interests. You need an attorney who protects your interests. For example, there may be zoning considerations, and while the value may not be affected, your plans for the property could be materially affected. I want my own attorney to do the search and arrange for title insurance.

Health condition mandates lawyer’s help

Dear Bruce: My father-in-law is suffering from Alzheimer’s. For the most part, he is capable of making decisions and living normally. He and his wife (my husband’s mother) have a joint ownership of their home, which is worth quite a bit of money. I’m concerned about his children from a previous marriage. They are hounding my husband’s mother about their inheritance. She has made all the house payments in recent years. What are the kids’ rights? Can they force her to sell the home if he has left half the house to them in the will? Is there any way for them to manipulate what the will says? —Needing Help, via e-mail

Dear Needing Help: Your husband should encourage his mom to see an attorney now. As long as your father-in-law is legally competent, he should be made aware of the fact that his children are making large pests of themselves. If the home is not already titled appropriately, it should be titled so that, upon his passing, the home belongs only to his wife. A strong case could be made for the fact that she has paid the mortgage, taxes, etc. Most importantly, the will should be in her care and custody. If she can’t find it, draw a new will, which makes all other wills valueless. Have it held by an attorney who can be responsible for carrying out your in-laws’ wishes.

Bruce Williams is a national radio talk-show host and syndicated columnist. He can be reached at bruce@brucewilliams.com.