DH passed away.Now what?

[Blonde Granny]

He died on Dec. 1st, so my concern is what happens now for 2016 & beyond.

I have removed him from 1 seldom used checking account, but he is till listed as JWROS on Ameritrade and primary checking.  CDs mature this year and we are both listed as owners.

Attorney said I didn't need to remove his name from Deed/owner of house (no mortgage) and I now own the only vehicle.

Tax wise, is it just better to take him off everything except real property and then file for 2016 earning as filing single?

[busymom]

I can only tell you what my Mom's attorney told me.  In the eyes of the IRS, your loved one "ceases to exist" in the following year after they pass on. You must get their social security number off of EVERYTHING, which means joint accounts, etc., need to be converted to your name (and your social security number).

I'm actually very surprised at your lawyer's advice on not removing your DH's name from the property deed.  Maybe laws vary from state to state, but when my Dad passed on, the attorney she was using at the time did have Dad's name taken off, so Mom held the sole title of owner.

Again, I am very sorry for your loss.

[Blonde Granny]

The only reason I can think of to not remove him from the house is that his VA disability was 100% P & T. That rating provides us (me now) full real estate tax exemption and exemption from personal property taxes. Each state has their own benefits for veterans that have that rating, and Arkansas is quite generous.  We (I) do not pay for cost of renewal tags for me vehicle as they technically never expire, even though there is a sticker.

I have a note on my desk to call the attorney this morning to get an appointment to have my wills and POA things redone.  Will revisit the house situation at that time.

I checked with Ameritrade and to remove him requires all 3 accounts to be redone, and the TOD paperwork for my son.  Guess I'd best check with Pen Fed about the CDs too.

on edit: Just got off the phone with our elder law attorney and have appt. March 9th.

[NoNamePerson]

Who was doing your tax returns before your DH passed away? I would ask them tax questions. Sometimes, and yes I said sometimes, attorneys don't think of tax consequences, they think law.

Sorry for your loss  

[Blonde Granny]

I have done the taxes for about 10 years. So, I'm no help to me.  And I've got 1 thing that DH owned from his former employer. It's a Royalty Trust from coal mines in Montana and Wyoming. Last year we received a total of $80 from it. The 4th qtr. was not paid as the admin costs were higher than the total revenue.

The Trust is perpetual but to get it into my name (IMNSHO) is a paperwork nightmare. If I say I don't want it, my son/dil/grandkids could potentially inherit the damn thing/.  But if I do nothing, I will have to declare it for income in 2016, as the check will keep coming....sometimes as little as $.50. then what?

[Jake 48]

No advice, just hugs, prayers and good karma as you adjust

[NoNamePerson]

Feb 5, 2016 10:12:20 GMT -5 Blonde Granny said:

I have done the taxes for about 10 years. So, I'm no help to me.  And I've got 1 thing that DH owned from his former employer. It's a Royalty Trust from coal mines in Montana and Wyoming. Last year we received a total of $80 from it. The 4th qtr. was not paid as the admin costs were higher than the total revenue.

The Trust is perpetual but to get it into my name (IMNSHO) is a paperwork nightmare. If I say I don't want it, my son/dil/grandkids could potentially inherit the damn thing/.  But if I do nothing, I will have to declare it for income in 2016, as the check will keep coming....sometimes as little as $.50. then what?

Can you ask a friend for the name of a good CPA maybe? It might cost a bit but save a ton in the long run.

[Blonde Granny]

Yes NNP, I can. My neighbor across the street. I think I'll do that. I also have a good friend who is a tax attorney, so I called him this AM and awaiting a call back.

[Deleted]

My friend's wife died in November and he is going through the exact same thing right now.  He was advised by his attorney to have her taken off of everything including the house (the mortgage was in her name only). 

It really is a kick in the teeth to have to deal with all of that stuff after losing your loved one, each form is another reminder of what you lost.   I really feel for you BG and wish you the best. 

[NoNamePerson]

Just another thought about property tax and such. Can you call tax assessor office for guidelines on exemptions. They may be able to answer some questions.

[Blonde Granny]

I just got off the phone with Ped Fed CU.  They are sending me the packet to fill out.  Must be similar to that royalty trust...<sigh> 

We don't have a branch of Wells Fargo here in Arkansas so I think I'll deal with them when I'm in Nebraska this spring.  Of course, we didn't even qualify to receive a 1099 this year....

[Blonde Granny]

Feb 5, 2016 11:01:44 GMT -5 NoNamePerson said:

Just another thought about property tax and such. Can you call tax assessor office for guidelines on exemptions. They may be able to answer some questions.

As long as I don't do something stupid, like get remarried or sell this house, I keep both exemptions as long as I'm still living own it. Of course, it has to be my primary residence.

[TheOtherMe]

Best to you as you struggle through this, BG.

The financial aspect of mom's passing was easier on my dad because they had sold the house and car when they moved in to independent living.  All bank accounts were joint with my sister and me.  All we had to do was take death certificate to bank and get mom's name taken off.  We are now beneficiaries on dad's IRA.  Also had to change beneficiary on his life insurance with his former employer.  That was it.