Estate Planning

Probate and Non-probate Assets

Asked Wednesday, October 25, 2000 by an anonymous user

CPA Answer:

A state court must authorize transfer of probate assets. Non-probate assets transfer automatically to the new owners at death.
Characteristics and examples of Probate assets are assets are owned individually by the decedent.
Decedent's share of assets is owned as tenants in common. Life insurance, annuities and retirement assets without any beneficiary designations.
Life insurance, annuities and retirement assets if the estate is the named beneficiary or if the estate receives the asset because the named beneficiaries are deceased.
Characteristics and examples of Non-probate assets are assets are owned jointly with the right of survivorship. Life insurance, annuities and retirement assets with valid beneficiary designations other than the estate. Securities or security accounts to be "transferred on death".
Bank accounts and other assets with "pay on death" or trust designations. Assets in trust if the instrument includes a plan for distribution after death.
CPAdirectory
Answer Provided by: CPAdirectory

Probate

Is Probate required if there is a Will ?

Asked Wednesday, October 25, 2000 by an anonymous user

CPA Answer:

Yes if the probate assets exceed the threshold amount. The creation of a Will does not avoid probate.
CPAdirectory
Answer Provided by: CPAdirectory

Probate

Is Probate required if there is a surviving spouse ?

Asked Wednesday, October 25, 2000 by an anonymous user

CPA Answer:

Yes if the probate assets exceed the threshold amount. Generally, the assets are owned jointly so there are minimal probate assets and they will be less than the threshold amount.
CPAdirectory
Answer Provided by: CPAdirectory

Estate Planning

What is joint tenancy ?

Asked Wednesday, October 25, 2000 by an anonymous user

CPA Answer:

Joint tenancy is a form of co-ownership. Joint tenancy is when property is owned equally by two or more persons who have rights of survivorship. This means that when one joint tenant dies, the property passes automatically to the surviving tenants.
CPAdirectory
Answer Provided by: CPAdirectory

Estate Planning

What is Tenancy in common ?

Asked Wednesday, October 25, 2000 by an anonymous user

CPA Answer:

"Tenancy in common" is a form of co-ownership. "Tenants in common" do not have rights of survivorship. At death, an owner's share passes to his or her estate and requires probate. "Tenancy in common" may own unequal shares in proportion to their contributions.
CPAdirectory
Answer Provided by: CPAdirectory

Estate Planning

What is Tenancy by the entirety ?

Asked Wednesday, October 25, 2000 by an anonymous user

CPA Answer:

Tenancy by the entirety is a form of co-ownership. Tenancy by the entirety exists only between spouses and is generally used for real property. It includes the right of survivorship and neither spouse can dispose of the asset without the other's permission. Tenancy by the entirety is not recognized in all states.
CPAdirectory
Answer Provided by: CPAdirectory

Estate Planning

What is community property?

Asked Wednesday, October 25, 2000 by an anonymous user

CPA Answer:

There are 9 community property states. They are AZ, CA, ID, LA, NV, NM, TX, WA, and WI. Each spouse is considered to own one half of the property acquired after marriage in a community property state.
There is no right of survivorship in community property state. When one spouse dies, the other spouse does not automatically inherit the deceased spouse's share.
CPAdirectory
Answer Provided by: CPAdirectory

Divorce & Marriage Issues

How do I collect child support from my divorced husband ?

Asked Tuesday, October 24, 2000 by an anonymous user

CPA Answer:

In order to collect child support from your divorced husband, you must contact your local child support agency.
CPAdirectory
Answer Provided by: CPAdirectory

Retirement Planning

Who can I contact to assist me in getting my vested pension money from my past employer ?

Asked Tuesday, October 24, 2000 by an anonymous user

CPA Answer:

You should contact the Pension and Welfare Benefits Administration of the Department of Labor (PWBA). To find out the location of your local office, call 202-219-8776 or write to the US Department of Labor, PWBA, Division of Technical Assistance and Inquires, Room N-5625, 200 Constitution Ave., N.W. , Washington, D.C. 20210.
CPAdirectory
Answer Provided by: CPAdirectory

Child Care Expenses

Unpaid child support - Refund withheld

Asked Tuesday, October 24, 2000 by an anonymous user

CPA Answer:

Under the law, Federal and State agencies transfer to the IRS the names and Social Security numbers of taxpayers who owe amounts due to child support, loans or taxes.
Your tax refund may be withheld if you are delinquent in child support payments or owe on a student loan.
CPAdirectory
Answer Provided by: CPAdirectory