Estate planning is often one of the most difficult planning processes one can face. Complications can quickly escalate, especially when settling large estates involving blended families or unique assets. Our long-time clients, Karen and Vicki, learned this all too well when distributing the estate of Vicki’s brother and sister-in-law. They sat down with us to discuss their experience and share what they learned along the way.
(from left to right: Jennifer K. Hicks, Karen Hyland, Vicki Willenborg, Stevie Green)
Vicki, can you give us a little background on the situation, because it was not very clear cut, was it?
- My brother had passed and his wife, Anne, was the sole trustee of their trust. Then, her mental capacity started to decline significantly, and one of Anne’s doctors called to say that she really needed help. So, we moved her to be near us, and we started helping with all aspects of her life, but especially her financial situation. Anne didn’t know how to do any of this as my brother had taken care of all of that for them. She was from England, and she became a US citizen when she married my brother.
- Anne passed in 2022, and I became the executor of the estate. There were 8 beneficiaries, 4 of whom live in England. We had to find lawyers there to distribute their portion of the estate. A lot of the stock had to be sold to fund the extra expenses associated with multiple beneficiaries in more than one country, and it has eroded the value of the estate. It’s actually still not all distributed due to one asset being pretty complicated, but having a lower value. We aren’t sure things were set up properly. Unfortunately, we weren’t a part of any of that, so we have felt like we were playing catch up this whole time.
Oh, my goodness, that sounds like a lot to handle.
- It was a lot. It’s like a jewelry box full of long necklaces that had been tangled; we had to untangle the pile piece by piece. All the while, caring for an ailing family member. It was a lot to handle all at once.
Having been an executor of an estate for a loved one, what surprised you the most about the process?
- Learning the fact that I was a trustee, to start. I was not aware of that ahead of time. I had to start from scratch by understanding the ins and outs of the entire process. I read the trust in a way that I focused on trying to understand my brother’s intentions, but then felt like there were conflicts between that and the way things were actually set up. There wasn’t a CPA involved and tax records were not well maintained; it was a huge mess.
What ended up being the key factor to successfully distributing the estate?
- Establishing a team of competent professionals after losing loved ones – including a financial advisor, attorney, and accountant. We had to identify competent, experienced professionals with the personal skills to work through the mess and ambiguity of numerous complex situations. That was the key to getting this done. Anne was 87 and she had overseas paper stock certificates that we didn’t even know who to contact to see about distributing. Purpose Planning connected us to an attorney that was able to guide us through that. It is still not completely done, but it would be impossible without that. Purpose Planning was a big part of helping us get through the entire estate settlement process. You all helped us find an international attorney, helped us set up accounts for beneficiaries, and provided us with guidance on so many aspects. Additionally, before Anne passed, you helped her feel comfortable with what to do with her inherited accounts from my brother. You spent a lot of time building rapport and trust with her, as she was really struggling since investments were so new to her.
What advice would you give to someone who is currently trying to settle an estate?
- It can be a very emotionally draining process, both on your time and emotions, so make sure you are asking for help. I was having a very difficult time trying to get my brother buried in Arlington National Cemetery, because I could not find the correct documentation. I eventually tasked my sister with that, and she resolved it by contacting her state Senator. Jennifer and Stevie also gave us a lot of encouragement about this process being a long one, but one that would eventually be resolved. We realized during this time how important a good spouse is. We have leaned on each other so much throughout all of this.
What advice would you give to someone who is currently working on their own estate planning?
- Recognize that circumstances change over time, and it’s important to revisit your plan periodically.
- Work with an attorney to ensure everything meets your state’s legal requirements.
- Be aware of circumstances in your trustee’s life and the impact of making them the trustee and communicate to them your intentions. Open and honest communication during your planning is important to make sure everyone is on the same page. It will help things go a lot more smoothly.
Ladies, thank you so much for taking the time to sit down with us. We are so glad to have been able to walk alongside you.
****This testimonial was given by the client of the financial advisor and no compensation was provided directly or indirectly. This testimonial is not a guarantee of future performance or investment success, and the testimonial may not be representative of the experience of other customers. Please visit BrokerCheck (https://brokercheck.finra.org) to see more on the background of this professional.