Anthony S. Park

Anthony S. Park is a professional executor for solo agers, probate real estate, and bitcoin. As a professional executor and probate lawyer, Anthony has seen what fared well (and what didn’t) at the end, upon death. He writes to share all that he’s learned from this unique perspective about estate planning, personal finance, and business. He's written several Amazon best-selling books on probate, executorship, solo agers and bitcoin. Join the email list at https://anthonyspark.com/join-podcast/ to hear more and for free book giveaways. Anthony's cases have been featured in many places, including the Wall Street Journal, New York Times, CNBC, and MarketWatch.

E342 Thank You to Our Listeners! 11/01/2023

E341 How Long to Transfer Real Estate After Death 10/25/2023

E341 How Long to Transfer Real Estate After Death There is no legal time limit to transfer real estate after death. It could happen quickly, or it could take years. We’ve seen cases where the real estate doesn’t get transferred until generations later. A fast sale is ideal, because problems can emerge in the meantime. There is a lag between the date of death and when the executor gets legal authority to handle the property. So, even “fast” isn’t very fast. How long does it take to get preliminary letters? The executor does not have full authority over the estate until he gets letters testamentary (or letters of administration) from the court. Preliminary letters give the authority to collect and manage property of the estate. They will not grant authority to distribute property. Preliminary letters are handy for entering the real estate for repairs, etc. Theoretically, the executor can get preliminary letters within a week. They can be issued same-day in emergency situations. , getting the letters is a slow process. We’ve had properties with leaks and rodents, and it still took us weeks to get preliminary letters. We called the court daily and filed papers often, and it didn’t move as fast as we needed it to move. If you have an estate without emergencies, you probably won’t get preliminary letters. If the court takes weeks to respond to emergency petitions, they aren’t going to move any faster for “normal” estates. How to prevent foreclosure on inherited property Undoing a foreclosure proceeding has legal costs and other implications. No one wants to deal with that. To , first notify the lender. Even though the mortgage company can’t give you much information without court letters, you should still inform them that you are working on the estate. If the lender doesn’t hear from anyone, they will go right to their foreclosure counsel. When folks hear the word “foreclosure,” they think of mortgages. Your homeowners’ association or co-op board can also take action, because they aren’t getting paid either. Again, they won’t have the legal authority to work with you. But you can let them know that you are getting preliminary letters. You should also look up and notify any other potential lien holders. There could be a mechanic’s lien, or a family member with a non-bank mortgage on the property. You might be surprised what a simple letter can do. Let them know that you are working on the estate so that no one else starts a process that is costly to undo. What to do when property owner dies There are certain things you can and can’t do without court letters. First, you cannot forward the mail. The post office needs legal authority to do that. You most likely cannot change the locks. Although, this is a gray area. If you are in a managed co-op or homeowners’ association, they will bar you from securing the property. You have a better chance of securing a property that is not managed. If you think it will be a contested probate, don’t change the locks. You can get in big trouble, especially in New York. You may be able to winterize the property and . Piled up mail and overgrown grass signal vacancy and can attract thieves or vandals. Even if you don’t have legal authority to clean up the newspapers, the court won’t give you a hard time deterring criminals. Remember, the property manager may not even live in the same state. Make a relationship with the doorman or superintendent and notify them of the owner’s death. They can keep an eye on the property and let you know if something looks off. Without court letters, you won’t get access to the interior of the property. But, the doorman can let you know of a leak or pests or a problem that affects the nearby units. Communicate with everyone until you get legal authority from the court to handle the property. Preliminary communication can stop a whole lot of problems from starting. My book, “,” can help you know what to expect with probate real estate. Request your free consultation /episode/index/show/simplemoneywins/id/28221044

E340 Reasons Not to Make a Loved One the Executor 10/18/2023

E340 Reasons Not to Make a Loved One the Executor We’ve talked before about not making a loved one your executor. I recently read an article titled, “.” Here, we’ll add our own perspective for why it’s not a great idea. Being executor can be emotionally difficult It is a duty that begins almost immediately after the death of your loved one. You are grieving the loss while facing a list of daunting tasks. Even normal probate is a lot of work and can be tough while grieving. In a somewhat difficult probate, you . If you are also family and friends with these people, it can be awkward. They will continually ask you when they will receive their inheritance. Some will complain that they get less money than others. You may not get far into the probate process before this happens. It goes without saying that a difficult and dramatic probate is even more burdensome and draining. Being executor is long and time consuming If you think probate lasts a few weeks or months, think again! . Over the past few years, we’ve seen probate take longer than ever. Many of the executor’s tasks must be done in person. This means walking into a bank and taking care of the assets face-to-face. It is very inconvenient, especially if the executor works and has a busy home life. The executor cannot delegate responsibilities by power of attorney. An attorney can help with many tasks, but not all. Things an executor needs to know The executor should have an understanding of legal issues and ! An executor is personally liable for mistakes they make during the probate process. This includes asset valuations, purchases, sales, tax complications, failure to pay debts, and more. The executor is liable out of their own pocket. Creditors can come after the executor’s bank and brokerage accounts and their home. There are a lot of tax issues when administering an estate. The taxing authorities know that this is their last chance to wring every last cent out of that social security number. The IRS will go through the assets with a fine tooth comb. What if your executor doesn’t have the skills to manage assets? The executor should be able to manage real estate, financial assets, and unique assets such as small businesses, collectibles, and bitcoin. If your executor doesn’t have an existing skill set for managing assets, don’t count on them learning when you pass. It’s too much to ask someone to learn how to manage assets while they are mourning. Many people think things will be fine as long as their executor hires the right people (lawyer, CPA, etc.). It is important to have a good team during probate, but it is not enough. Each of these professionals have their own incentives and opinions. And remember, none of them are personally liable. Just because you hire a lawyer to help with probate doesn’t mean you will get the best advice. Even if your CPA is great at doing your income tax returns doesn’t mean they know how to do tax returns for an estate. You need professionals who have a solid understanding of probate. The article we reviewed also recommends working with experienced professionals. People are starting to hear more about professional executors. Whereas, even 5 years ago, it wasn’t quite as popular. If you want to learn more, check out my book, “.” When people understand what professional executors do, they like the option. They are thrilled to have that burden lifted off of their loved ones. Request your free consultation /episode/index/show/simplemoneywins/id/28221011

E339 Why Sharing Your Seed Phrase is a Bad Bitcoin Inheritance Plan 10/11/2023

E339 Why Sharing Your Seed Phrase is a Bad Bitcoin Inheritance Plan In this episode, we will talk about self-custodied bitcoiners (not those who have their coin on an exchange or with a third party). Some bitcoiners share their seed phrase with their spouse or adult children. Or perhaps they share their cloned wallet with those trusted individuals. It’s temptingly easy, essentially . But, as we’ll discuss, it can be insecure for reasons you may not think of. Sharing your seed phrase can be dangerously . Relationships change One reason that this plan is not flexible is because relationships change. Married couples can become divorced or widowed. You may have a falling-out with a loved one. Your relationship with your child may be good now, but the relationship could become strained or even estranged. If this happens, you may not want them knowing your seed phrase. That’s like giving the keys to the kingdom to someone you don’t trust anymore. They’ll won’t keep it secure Say you give your seed phrase to your spouse or adult son. No matter how wonderful they are, your loved one may not realize how important it is to keep your seed phrase safe. It’s not that they have bad intentions, they may just have bad operational security. Imagine if they tape your seed phrase to the refrigerator so they don’t forget! Besides exposing it, they may lose your seed phrase altogether. Don’t think that you’ll be successful in training or teaching your trusted loved one. Remember, to them. When you first started with bitcoin, how many months or years did it take for you to understand how it all works? Your spouse or son might not want to learn about bitcoin, so they might take a photograph of the seed phrase or put it on a password manager app. What about giving them a clone hardware wallet instead? All they need to do is remember the PIN to open it. This still isn’t a great idea for the same reasons we just discussed. Keeping the hardware wallet up to date is a job. There may be updates every couple of months, and your spouse or son needs to remember to manage those updates. Besides, there is the risk of hardware failure. If your loved one doesn’t have the seed phrase and the hardware wallet is the only way to access your bitcoin, you’re looking at catastrophic loss. Even more robust external hard drives fail. Such technology could be outdated and difficult to open after many years. You can't take back a secret Once you’ve shared the seed, you can’t take it back. Think back to grade school: you tell someone your deepest secret and then realize that kid is a blabbermouth! You can’t undo what’s been done. Same with sharing your seed phrase. What if your relationship with that trusted person changes? You’ll need to create a new wallet and transfer your funds, otherwise your “secret” is with an untrustworthy person. We see this with our non-bitcoin clients. They make a treasure map or write a letter of instruction telling their trusted person where everything is located. Once you create that treasure map or letter, you have to keep it up to date constantly. Life changes could occur making it inapplicable. Similarly, if you don’t trust that person anymore, you need to move everything and make new maps and letters. Now you know why it is not secure to share your seed phrase. Hopefully this helps you to make the best bitcoin inheritance plan for your situation. I am working on my bitcoin book, and I hope to get it out there soon! In the meantime, check out my book, “”, available on Amazon. If you are a bitcoiner, you may want to consider hiring a professional executor to navigate this complex component of your estate. Request your free consultation /episode/index/show/simplemoneywins/id/28220957

E338 Should I Sell My Home Before I Die? 10/04/2023

E338 Should I Sell My Home Before I Die? This is a very common question that we get from Solo Agers. We’ll review the pros and cons of making that decision. Reasons to sell your home before you die The biggest reason Solo Agers want to sell their home before they die is because they don’t want to leave a mess for their loved ones. Otherwise, there may be a lot of cleaning, maintenance, and packing for the heirs to do. Additionally, the before it is in sellable condition. Another reason is that Solo Agers may want to downsize anyway. Downsizing is a different topic, so we won’t focus on that here. Reasons to leave selling your home to your executor after you die I often suggest that our Solo Agers live where they want and leave the task of selling the home to the executor after they pass. Don’t spend your final years cleaning, packing, staging, and moving if that’s not what you want to do. It’s probably not on your bucket list to clean out your garage before you die. Do those things you always wanted to do. Enjoy life! If you still feel that obligation to put things in order for your heirs, please know that probate is a mess no matter what. trying to leave it perfect. What if you clean out your home and you live longer than you expected? Now a new mess will accumulate. Even if you could know the exact date of your death, it still won’t work out perfectly. Another example of “helping” heirs is making treasure maps to your keys or passwords. Don’t do it. You may move your keys or change your password and forget to update your treasure map. You don’t need to spend your final days and years making your death convenient for everyone else. If you are still worried about burdening your heirs or executor, you could hire a professional executor. This could be us, or a bank, or a fiduciary company. It is the job of the professional executor to handle , renovations, etc. Because we do these things so often, it’s not a big deal for us. And if something complex were to happen, then that’s our job, too. That’s what we get paid for. You can rest knowing that your professional executor is experienced and capable. You won’t have to burden your heirs with the tasks, and you won’t have to spend your final years worrying about what will happen after you die. Most Solo Agers are relieved when they learn that a professional executor can handle all of this. My book, “,” can help you decide which tasks (if any) you should worry about before you die. I enjoy meeting more and more Solo Agers; it’s a growing population. As I work with them, I also learn a lot of things that I can pass along to all of you. Complete this form to receive your complimentary copy of Anthony’s Amazon best-seller, “” /episode/index/show/simplemoneywins/id/28217291

E337 Who Owns a House During Probate? 09/27/2023

E337 Who Owns a House During Probate? When someone dies, many folks are confused about who owns the house during probate, right after the death. Technically, the heirs own it immediately upon death, subject to debts and taxes of the estate. But, sometimes is not clear who the heirs are. The probate process decides who exactly are the heirs and places an executor in charge to sort out all those debts and taxes. So, the heirs own the house, but if it is not clear who the heirs are, then you kind of need to wait to see who really owns it. Understandably, this is a bit confusing. We’ll cover common questions on who owns the property during probate. Can multiple heirs inherit a house? Yes, multiple heirs can own the house either by will or deed. As you can imagine, having more than one heir inherit the house leads to a lot of problems. The most common problem is when one heir lives in the house and won’t leave. Or maybe heirs can’t agree on how to manage the property. And, sometimes one heir wants to keep the property and the rest want to sell it. They might even disagree on how to buy each other out. These conflicts often lead to a probate sale so everyone can take their share and walk away. Can the executor sell a house that is in probate? Does the executor have the power and authority to sell a house that is in probate? Yes, absolutely. Besides, selling the house is often necessary. Maybe the will instructs the executor to sell the house and divide the proceeds among the heirs. Sometimes the house has to be sold to cover the estate bills/taxes that the bank accounts can’t cover. Or, as mentioned above, the house has to be sold because multiple heirs can’t agree on . Do all heirs have to agree to sell property? Preferably, all the heirs should agree; that would make life easier! But they don’t necessarily have to agree. If there is a court-appointed executor, then executor can make the impartial decision (if it’s a professional executor and not a family member). If the executor is a family member or one of the heirs, then the decision isn’t really impartial and there is potential for drama. If multiple heirs are on the deed, then the house is technically not part of probate. If heirs are in conflict about the deed, then there will be expensive court proceedings to either bring the property back into the estate so the executor can decide, or a judicial partition where a judge decides. By the time these expensive court proceedings are over, there might not be much profit. Naming multiple heirs on a deed is a variant of what we call the “.” Probate We get these questions a lot, so hopefully this helps clear things up for our callers and listeners! To learn more about the ins and outs of probate, check out my book, “,” available on Amazon. Request your free consultation /episode/index/show/simplemoneywins/id/27935001

E336 Risks of Being an Executor 09/20/2023

E336 Risks of Being an Executor What are the risks of being an executor? An executor has a lot of power and responsibility during probate, but is correspondingly accountable for everything that happens within the estate. We’ll cover how an executor has risk of even personal liability, how long that risk lasts, and how an executor can protect himself from these risks. Executor personally liable for debts and taxes The executor has personal liability for debts, taxes, and anything wrong with the estate. If an executor makes an error, the court’s first reaction is to deny payment of the executor's commission. If the commission is not enough to cover the court-determined error, the executor’s PERSONAL assets (home, bank accounts, etc.) are legally at risk if court rules that the executor screwed up. When someone chooses an executor and that person accepts the role, it's very possible that neither party is aware of the risks. The risks can be more than the executor forgetting to pay a tax bill and becoming personally liable for it. Some scenarios are a bit more nuanced. For example, the executor sells the real estate, but at the closing a few months later, the heirs dispute the sale price. The heirs might seek the difference in the price from the executor's commission or from him personally. Another example is when the executor fails to pay a “knowable” debt or tax or fails to take the steps to find out if debts exist. How long is an executor liable for debts? Theoretically, the executor can be liable forever. There are some limits, but practically an aggressive lawsuit can get around those limits Many states have laws that give creditors 7 months (or similar time limit) to submit verified claims. There is a specific legal procedure to become an official creditor or else the executor is not personally liable for that debt. However, even in absence of a formal claim, the executor can be held to have constructively known about the debt, or even should have known! The best practice when closing an estate is to ask heirs to sign a receipt and release, which says the heirs accept their check as full and final settlement, and agree not to try to sue the executor later. Theoretically, the release is iron-clad protection for the executor. But practically, the heirs can get around it. An heir could claim that she signed the receipt and release because the executor failed to disclose information, otherwise she wouldn’t have signed it, etc. How executors can protect themselves The good news is that there are ways to protect yourself if you are an executor. First, get the tax clearance. Don’t distribute estate funds until the IRS and state have confirmed you’re good to go. Although painfully slow, they have procedures to formally release an executor from personal liability. If you fail to get the (or even fail to search for tax that is owed), the taxing authorities have and will slap you with large and completely unexpected tax bills. Second, with receipt and releases. The accounting is composed of the books and records of the estate in court-approved format. It provides full disclosure to the heirs and gives heirs/creditors less wiggle room to argue that the executor failed to inform them. Next, . Hang on to a small percentage of the estate funds to pay those surprise debts or taxes, just in case. Of course, the reserve will be paid out to the heirs eventually. But, give yourself some time to make extra sure that the estate doesn’t owe any debts or taxes. No matter how good an executor is and even though the estate is closed, things tend to come up down the road. If you have a decent reserve, then you won’t have to hunt down the heirs asking them to pay back the debt. And believe me, the heirs will not return your calls and you’ll be out of luck. Lastly, you can protect yourself by not being an executor: hire a professional! Even with a good probate lawyer, amateur executors are prone to making poor decisions that leave them open to risk. Why not have an experienced professional making those risk cost-benefit decisions, instead? Even a small mistake could leave an executor open to risks. For those of you who are considering being executors or for those who are thinking about who to name as your executor, it is useful to know what an executor has to go through. To learn more, check out my book, “.” Request your free consultation /episode/index/show/simplemoneywins/id/27934941

E335 Why a Letter of Instruction for Bitcoin Inheritance Will Fail 09/13/2023

E335 Why a Letter of Instruction for Bitcoin Inheritance Will Fail A letter of instruction will likely fail for your bitcoin inheritance plan and should have only a marginal role in your plan, if any. Search for “bitcoin inheritance” and you will probably find lots of people advising you to write a letter of instruction for your heirs. We talked about this and even provided a . Now, having spent a bit more time delving into different approaches to bitcoin inheritance, we’re de-emphasizing a letter of instruction. Note: this applies to self-custodied bitcoin, not held through a third-party. Educate your heirs A letter of instruction is a subcategory the general approach: I'll just educate my heirs! Some folks set up a fairly complicated bitcoin inheritance plan, but assure themselves, “I’ll make sure to educate my (spouse, son, etc.) on self-custody.” Like any other educational endeavor, you must have an eager and willing student, or it just won’t stick. You can educate them on self-custody as hard as you want, but unless your heir is self-motivated to learn, it probably won’t work well. They may appear to understand in the short term to appease you, but that “knowledge” will leak out of their heads almost immediately. Think back to when you started your Bitcoin journey: if you weren’t that interested and someone started discussing self-custody and hardware wallets, your eyes probably glazed over. You could blame the lack of self-motivation to learn on the ever-evolving status of bitcoin, but this is not the case. We see it all the time with other legacy assets like art, collectibles, and especially small businesses. Take, for example, a father who spent his life building his profitable small family business to pass on to his children. Sometimes the heirs aren’t interested in running the family store after dad passes. No matter how much that father tries to teach them how to run the business, they just don’t care enough to learn. You don’t want to rely on your heirs’ knowledge of Bitcoin to make sure it passes properly, because self-custodied bitcoin that doesn’t have a transfer of custody upon your death is basically lost bitcoin. Letters don’t work with even legacy assets Even if you are the Shakespeare of letters of instruction, you still won't be able to write a perfect letter to make your heirs understand how to successfully gain custody of your bitcoin. We’ve seen it : letters of instructions don’t really help. Why not? Your situation and your assets change over time, and people overestimate their ability to keep these letters up to date. It’s a lot to remember and to actually update your letter every few months. On the flip side, most heirs (and most humans) are terrible at reading, comprehending, and following instructions. Some people struggle with IKEA furniture instructions... Just imagine how hard it will be to understand a letter of instruction especially after the death of a family member or friend. On top of that, your letter probably won’t be one page long; it will be several pages of difficult things for an amateur to comprehend. It’s not because your heirs are dumb; it’s the emotional circumstances. We see heirs struggle with even basic assets that they are super familiar with (bank, brokerage accounts, etc.). Self-custody bitcoin would be a HUGE hurdle for a non-bitcoiner to deal with, especially relying only on your letter of instruction. Bitcoin inheritance treasure hunt A letter of instruction is too often a “treasure map” to various seed phrase shards or wallet locations. Turning it into a treasure hunt is a terrible idea. It’s an even more complicated and worse version of a letter of instruction. We’ve seen treasure maps and letters of instruction fail for simple things like the keys to a storage locker or the location of important original documents. What happens if things get moved around or your letter isn’t up to date? It’s a dead end more times than not. For these reasons, we highly discourage relying on a treasure map for any part of your bitcoin inheritance plan. Of course, you can still have a letter of instruction, but it should not be a featured piece of your estate plan. At a later date, we’ll discuss what should be the features of your bitcoin inheritance plan. In the meantime, check out my book, “,” available on Amazon. It will help you understand the steps of probate before you further complicate it with Bitcoin. Request your free consultation /episode/index/show/simplemoneywins/id/27934854

E334 Why Hire a Professional Trustee? 09/06/2023

E334 Why Hire a Professional Trustee? I do serve as a professional trustee, not just executor, or our Solo Ager clients. We’ll cover why our Solo Ager clients are looking for a professional trustee, why they don’t use banks, and how much it costs to hire a professional trustee. Disputes between trustee and beneficiary Why are our Solo Ager clients looking for a professional trustee? The main reason is because of potential disputes between the trustee and the beneficiaries. Unfortunately, this kind of conflict is very common, even more so than between heirs and executors. A trust creates a much longer relationship: an estate lasts a year, worst case 2-3 years. Even with tax issues and selling the estate assets, there is at least a finite relationship where the heirs can see the finish line. The heirs and executor can probably learn to put up with each other, because they know that there is an end in sight. Whereas, a trust can last decades. It usually deals with the duration of someone’s life. A trustee usually has to make more discretionary decisions than an executor. Often, trusts are written so that the trustee can decide how and when to distribute money to a beneficiary. For example, a trustee can make a “distribution for the health and education or comfort” of the beneficiary. This can get very awkward if heirs and trustee all know each other (siblings, friends, cousins, etc.), and the heirs have to prove to the trustee why they need the money. The heirs may not want to disclose certain health or financial issues to a trustee who is close with them. Even discussing the heirs’ standard of living means that the trustee will know what the heirs spend their money on. There could be a lot of details that you wouldn’t share with your family or friends otherwise. This is why having a professional trustee could make the situation easier. With an estate, the heirs are the people named in the will or the intestate heirs named by law if there is no will. A trust has multiple layers of beneficiaries. There are beneficiaries of the income of the trust and also beneficiaries who receive whatever is left when the trust maker dies. Those are very different incentives: the income beneficiaries want as much income generated and paid out to them as possible, whereas the beneficiaries at the end do not want the trust money to be spent or distributed so that they can still receive some. This can be a difficult balance even for professional trustees, so imagine how dicey it would be for a trustee who has a relationship with the heirs. Naming a bank as trustee Why not name a bank, trust company or other fiduciary company as trustee? Some of our Solo Agers have shared their experiences with us, and they tell us it often . Many of these institutions have minimum trust size requirements to qualify, or else they will just reject you. Surprisingly, these minimums can be quite high, because they only want to deal with people who have a lot of money. Even if your trust meets the minimum right now, make sure you have a sufficient amount to qualify by the time you actually need the bank to act as your trustee. For example, the bank’s minimum requirements might increase at a rate that outpaces the growth of your trust assets. If that happens, your trust may no longer be eligible and your trust won’t have a trustee anymore. Another example is when you need to use the trust money during your lifetime to pay the income beneficiaries or medical bills. Taking too much money out of the trust could also disqualify you from using the bank as your trustee. What about the bureaucracy? We’ve heard from many folks that it is a frustrating and lengthy process just to get approved by the bank. This doesn’t necessarily relate to the minimum requirement; it just takes so long to get your application approved. You’d think it would be the other way around: a person entrusting an institution with their life savings should be vetting the banks! It feels more like asking the bank for a loan rather than asking them to be your fiduciary. On top of that, there is no guarantee you will talk to the same person each time. Whereas with a professional trustee, you know exactly who you hired. For these two reasons, many clients have reported that they just gave up trying to deal with the financial institutions. How much does it cost to hire a trustee? In most cases, there is no cost now, because most trusts are usually revocable or a testamentary trust. So, you won’t need a professional trustee until you pass away. Since no one is doing the job now, there is no cost now. Once a trustee is needed, the cost for a professional trustee is the same as an amateur. , the trustee fees are set by state law. If it costs the same to use a professional trustee as it does an amateur, it’s a no-brainer to choose the experienced professional! It’s a fair assumption to assume it costs more to hire a professional trustee, but fortunately, that is not the case. Thank you to our listeners who’ve submitted questions like this. It helps our Solo Agers to know that they’re in good company. If you have not done so already, click the link below to receive a free E-copy of my book, “.” Complete this form to receive your complimentary copy of Anthony’s Amazon best-seller, “” /episode/index/show/simplemoneywins/id/27934734

E333 Seller Credit When Selling Probate Real Estate 08/30/2023

E333 Seller Credit When Selling Probate Real Estate This happens when the buyer agrees to a higher contract price, but the seller also agrees to credit back a set amount to the buyer, so the net purchase price is lower. For example, if the buyer wants the house for $250,000, they would set the contract price at $300,000 with a side agreement that the seller would credit $50,000 on the closing statement, effectively making the price $250,000. Why not just a price reduction? Co-ops (and sometimes condos and homeowners’ associations) want the closing price to be (artificially) higher to maintain their average price per square foot. They don’t want records to show that a unit sold for significantly less than other units, because, in theory, it will eventually drag down the value of the building. Even though a lower price is reasonable for a probate property that needs major renovations, it doesn’t benefit the co-op. Sometimes cash buyers and investors want the recorded price to be higher, so they can show flip buyers a slimmer profit margin. For example, an investor pays $250,000, hoping to flip it for $350,000. When the investor goes to sell the property, the buyer can check the public records to see what the investor paid. It will show that the investor is trying to make a $100,000 gain. If the records show that the investor paid closer to $350,000, it won’t look like he’s making a large profit. What can a seller credit be used for? Non-professional executors and heirs are sometimes worried that the situation seems sketchy. They wonder if they are really allowed to give a seller’s credit. No worries; it is legitimate and fairly common. In non-probate situations, it is most often used as an incentive to the buyer to cover some repairs or pay for closing costs. Sometimes repairs need to be done for the property to be sellable. It’s a way of putting the repairs on the buyer instead, when the estate is cash-poor or the executor just doesn’t have time. Usually cash buyers only A seller’s credit is mostly used for cash buyers for a few reasons. There are often small credits for something like a broken stove. But sometimes there are legal issues with the property or major renovations are needed. If the credit is a large amount, greater than 10% of sale price, it makes the closing figures look non-traditional. Banks don’t handle that situation well, so a seller’s credit is usually not a good option for a buyer who needs to take out a loan. Selling a probate property has many nuances; it’s not the same as a regular house sale. You may have sold your home once or twice and figure that selling probate real estate is easy. The reality is that probate real estate can be very different. To learn more about what to expect during probate, check out my book, “, “ available on Amazon. Request your free consultation /episode/index/show/simplemoneywins/id/27623496

E332 Your Bitcoin Inheritance Plan Must be Frictionless 08/23/2023

E332 Your Bitcoin Inheritance Plan Must be Frictionless We’ve talked before about . Same goes for a bitcoin inheritance plan, even more so. The best inheritance plan is the one that actually exists In general, 60 to 70% of people have no will or estate plan at all. Why don’t they have an estate plan? 44% is due to procrastination - “I have time; I’ll get to it later.” 25% of people are not sure where to start. 13% say that it is too expensive to create an estate plan. In the New York City area, the cost to set up an estate plan with an attorney ranges from $1,500 to $4,000. Especially if you don’t have the liquid funds available, it’s an understandable hesitation. Making an inheritance plan is a series of tough decisions We only have a limited amount of brain power for decision-making per day! Creating an inheritance plan uses a lot of that decision-making fuel. For example, do you start with ? If you choose a lawyer, do you know a good lawyer? Now you’re spending time and energy asking for referrals and setting up consultations. If you choose to ? Once you decide on hiring an attorney vs. a DIY plan, do you want a will or do you want a will and a trust? There are many legal decisions to make as you develop your plan. Next, who will inherit your estate? With a nuclear family, this will probably be straightforward. But, perhaps you want to add charities, friends, etc. You will need to decide what amount to give to each beneficiary. Who will be your executor or trustee? If you have minor children, who will be their guardians? These are just the major things you have to think about when planning your estate. Once you make it through one decision, you have to move on to the next. It’s easy to see why so many people put off making an estate plan. Bitcoin custody adds more decisions to your inheritance plan How will you hold your Bitcoin while you are alive to make it easier to transfer upon your death? How (technically) will that custody transfer to your executor when you die? There are technical logistics that you don’t have to worry about with legacy assets. Will transfer actually work? From my conversations with various bitcoiners, many seem a bit overconfident that their bitcoin inheritance plan will work seamlessly. In our experience, even common assets, like stocks and bank accounts, have problems transferring easily, let alone something like bitcoin, where your heirs are probably very unfamiliar. Have you compromised your existing security too much to make your plan happen when you die (meaning, is it a bit too easy to make a transaction while you’re alive)? On the flip side, have you compromised your existing convenience too much to make your plan as secure as possible (meaning, is it a pain to make a simple transaction now)? Who in your life understands bitcoin custody, probate, and taxes well enough to be your executor? Chances are that you don’t know someone knowledgeable in all of those areas. This is where we can help as professional executors. Most importantly, remember, the best inheritance plan is one that actually exists. You have to have something, or else you have nothing! To learn more about probate, check out my book, “,” available on Amazon. It doesn’t address bitcoin specifically, but it can help you understand what’s involved in administering an estate. Hopefully soon, I will complete my bitcoin inheritance book! Request your free consultation /episode/index/show/simplemoneywins/id/27623460

E331 No Upfront Cost to Name a Professional Executor 08/16/2023

E331 No Upfront Cost to Name a Professional Executor Folks who are interested in naming me as their professional executor ask how much it costs to get started. There is no cost! We’ll explain why, what you get, and what to expect. It’s just a nomination At this point, you are healthy and just being responsible by making your estate plan. When you name me as trustee in your trust or as executor in your will, it’s just a nomination; I haven't done any work yet. Besides, you can always change your will and I may never become your executor or trustee, depending how you make your plan. Not your estate planning lawyer To be clear, I’m not your estate planning lawyer. I’ve done estate plans before, and I am very familiar with what needs to be done. Nowadays, I’ve narrowed down my expertise and I am focused on being the best possible executor or trustee after folks have passed. Some people ask if I can draft their wills or trusts anyway, and the answer is unfortunately no. I no longer have the software, fancy paper, etc. to do wills. Consider it a good thing that I don’t split my time between preparing wills and acting as a professional executor. It means that I am dedicated to providing the best service as your executor. Also, as an experienced executor, I know how things will happen at the end. When reading a will, I can foresee what issues will arise because of the way it is written. When you nominate me as your executor, I am happy to take a look at your will as a second set of eyes. Again, this review would be non-legal advice, because I am not your estate planning attorney. But, I will be the one to carry out your wishes. When reviewing your estate plan, I look for any red flags that may make my job harder as your executor. As a side note, we don’t usually find many red flags, because many people work with competent estate planning attorneys. Complimentary check-ins As we’ve discussed before, we offer . We do this to make sure I’m alive and you’re alive! It’s also useful to get to know each other over the years. You want an executor who is familiar with you and your wishes, based on more than just one meeting or phone call. As we talk, I might discover that you’ve grown distant from certain relatives or perhaps you made a new best friend later in life. These things could be useful when carrying out your will or even defending your estate plan. Since I am not doing any work for your estate yet, we keep the calls brief. Sometimes it’s just an email. But it’s a good reminder for you to think about your plan at least once a year. This is a common question that we get, but if you have any other questions, please feel free to leave them in the comments. To learn more about what I do as a professional executor, check out my book, “,” available on Amazon. Request your free consultation /episode/index/show/simplemoneywins/id/27623397

E330 Your Bitcoin Inheritance Plan Must be Flexible 08/09/2023

E330 Your Bitcoin Inheritance Plan Must be Flexible Barring a terminal illness or physician-assisted death, it’s very hard to know when you will die. The world changes very quickly, and you do not know what the world will be like at the time of your death. For example, there were no iPhones two decades ago, and now look how technology has evolved. So, to future-proof your plan, you must keep it as flexible as possible. Inheritance plan vs actual circumstances In general, your estate plan will be different from the actual circumstances upon your passing. For example: Your beneficiaries and your executor may be very old or may not be alive. Or, your relationships with them may have changed. Your beneficiary is wealthier than you anticipated and you may not want to leave as much money to them anymore. Your assets have changed. Say you plan to give your nephew 10% of your bitcoin. But, when you pass, your bitcoin is worth way more than you ever imagined. Now that 10% is a pretty hefty chunk of change, and you didn’t intend to leave your nephew quite that much. Most people do not have an estate plan at all, and even the ones who have a will or a trust don’t update them. Supposedly, 70% of plans are not up to date and 20% of them haven't been updated in 5 years or more. That’s a lot of people with ex-girlfriends still named as beneficiaries in their estate plan... But, let’s be realistic: if we didn’t do estates for a living, we’d probably forget, too! No matter how much you plan for your death, there is a general chaos surrounding the probate process. You don’t know who will be alive, who will cause drama, or who will sue the estate because they are upset about how you wrote your will. People think that their heirs and beneficiaries will be cordial, but when money is involved, you never know. Bitcoin evolves quickly Bitcoin is a young asset, and it is still in a very fast evolutionary stage. Bitcoin has gone from your wallet being only available on your own node (if you run core software), to paper wallets where you write or print out your code/seed phrase/key, to HDD, to multisig wallets. And that’s just wallets! Now you have second and third layers from Lightning and Arc coming on. There are more people with their own nodes now. Who knows what’s next? Will you update with each evolution? Unlikely. So, your plan needs to be able to adapt to the circumstances surrounding your death. Even our Bitcoin podcasts have evolved over the past few years! When to automate? One of the main points in using Bitcoin is to eliminate trusted third-parties and middlemen. In general, automation is best suited for predictable and repeating tasks such as regular billing, social media posts, or other high volume tasks. But there are certain circumstances where it’s not wise to use automation. Using automation is a poor choice when the task requires decision-making; it’s the opposite of predictable and repeating. You do not want to automate your estate plan. As we discussed above, you do not know what the world or your family tree will be like upon your passing. In traditional, legacy estate plans, . It is a form of automation to say, “Upon my death, everything will go to this person.” Avoiding legal fees and probate sounds great, but you are assuming that your plan will be up to date. You’re assuming that the amount in the bank account at the time of your death is the amount you want that beneficiary to get. More often than not, this scenario doesn’t shake out the way you hoped. A custodial Bitcoin solution means naming a beneficiary on your Kraken or Binance account. But when automating a non-custodial Bitcoin inheritance plans (like a time-lock, letter of instruction, sharding, etc.), you have frozen in time an inflexible solution for a situation that requires great flexibility. For probate in general, as well as Bitcoin, it is more important to rely on a human executor who can assess the situation and make the appropriate decisions. In probate, the executor may have to deal with a bureaucrat or a government employee who is asking them to do something ridiculous to get the information needed for the estate. You need a human being who can perceive that the instructions are strange and find a way to get the job done. That’s the difference from being stuck in a non-flexible system that doesn't have decision making capabilities. In conclusion, your Bitcoin inheritance plan needs to be as flexible as possible to adapt to the evolution of Bitcoin and our ever-changing world. To learn more about probate, check out my book, “,” available on Amazon. It doesn’t address Bitcoin specifically, but it can help you understand what’s involved in administering an estate. Hopefully soon, I will complete my Bitcoin inheritance book! Request your free consultation /episode/index/show/simplemoneywins/id/27623316

E329 Professional Executor for Physician-Assisted Dying 08/02/2023

E329 Professional Executor for Physician-Assisted Dying Physician-Assisted Dying has other names that might be familiar: death with dignity, aid in dying, assisted death, euthanasia, and assisted suicide Since we’ve received many inquiries from our Solo Agers, here some of your FAQs: Making arrangements from Switzerland Can my professional executor help make arrangements from Switzerland after I pass? Switzerland is often the go-to jurisdiction, but there may be others in the U.S. The medical facilities need to know who to notify upon death, and we have filled the role as the entity to be notified. You also need to make arrangements to send final personal effects (phone, wallet) after your passing. Again, we have been in that role before, and we have coordinated the receipt of the personal belongings. Live your last days to the fullest If you are scheduling a physician-assisted death, you have to weigh the balance between preparing and living your life to the fullest. We get calls from Solo Agers who are very focused on preparing and tying up any loose ends (cleaning out and selling their home). Our advice is to go ahead and take care of the low-stress items but leave the rest to us. It is our job to figure things out upon your passing, and . There is a limit to how much you will be able to help us, no matter how hard you try. Most folks have not gone through probate enough to know what needs to be done, so it’s better to let us handle it. Most people pass away unexpectedly and most things are generally unorganized anyway. Instead, do your best to enjoy your remaining time and complete that bucket list! To disclose or not to disclose Do I need to tell my executor that I plan to have a physician-assisted death? It’s totally up to you; we’ve dealt with both. Telling us helps us be ready on the scheduled date. But if you prefer your privacy, it’s no problem; we’ve done that too. Most deaths are unexpected, so we are used to it. Perhaps your loved ones don’t know that your death was planned. As professional executors, we know how to handle the situation tactfully. Click the link below to check out my book, “.” This topic is not covered specifically in my book, but it will help you learn more about probate in general. Complete this form to receive your complimentary copy of Anthony’s Amazon best-seller, “” /episode/index/show/simplemoneywins/id/27623226

E328 Hire Lawyer or Broker First When Selling a Probate Property? 07/26/2023

E328 Hire Lawyer or Broker First When Selling a Probate Property? Should you look for a broker or lawyer first when selling a probate property? With non-probate home sales, brokers are the first to list, set an open house, and find a great buyer. Lawyers only get involved once a buyer is in place and a deal is struck. The lawyer then drafts the contract and conducts the closing. But with probate, talking to a lawyer first makes more sense. Here’s why: Talk to a probate lawyer first when selling a home It’s important to talk with a probate lawyer, because you need to know who has the authority to sell the home. The lawyer can also tell you whether the estate needs to be probated. Not every estate needs probate: maybe the house is titled a certain way or it is held in a trust. Or, maybe you live in an area where the title company accepts “heirs at law” affidavits. These situations are best analyzed by a probate attorney. How long will it take to get started? How much will it cost? The answers to these questions will determine what type of broker you will work with. A probate attorney will walk you through the estate debts, taxes, etc. You may not want to go through the hassle of selling the probate property if there is only a small fraction of the estate left over after debts and taxes. There are some pre-steps that a probate lawyer (or a good broker) can help with: Hiring a title company to confirm who owns the property and check for major judgements or liens. Talking to co-op management and HOAs to see if there are any red flags. When to speak with a broker first to sell probate property Brokers are good at figuring out how much you can reasonably expect to sell the house for. Is there enough value to deal with the mess? A downside of talking to a broker first is that too often, they are eager to get a new deal but they don’t understand the estate situation. The broker may not realize that the person they are speaking with does not have the legal authority to hire them. At that point, you’ve wasted your time and the broker’s time if you do not have the legal authority to sign a listing agreement, etc. Sometimes selling probate property does not require a broker. You can avoid the broker’s commission if you sell the home to an heir, a neighbor, or a cash investor. A probate lawyer can advise on this, so it will probably save money to meet with a lawyer first. We see this happen a lot, so we want to share our tips with anyone who is looking to sell probate property. Meet with a probate lawyer first so that you can get proper guidance. To learn more about probate, check out my book, “,” available on Amazon. Request your free consultation /episode/index/show/simplemoneywins/id/27336879

E327 Professional and Amateur Executors Cost the Same 07/19/2023

E327 Professional and Amateur Executors Cost the Same How much does a professional executor cost? Most people are surprised to learn that executor fees are the same whether you choose an experienced professional or your unemployed nephew who has lots of spare time. When people realize that they are paying the same cost, they will probably choose a professional executor. In fact, your estate will probably even save on expenses with a professional vs.an amateur. Executor fees set by state law Executor fees are almost always set by state law, whether it is a percentage of the estate or a reasonable fee. The percentage often works out to 2-3% of the estate’s value, which is less than half of a broker’s commission in most states. Some states use the “reasonable fee” standard, and the court accepts a customary percentage as “reasonable.” Sometimes the reasonable fee is an hourly rate that the court deems acceptable. If you have an amateur executor, the hourly rate can get pretty expensive. If the executor doesn’t know much about probate, it will take him longer to accomplish tasks than a professional executor. Sometimes amateur family/friend executors attract more drama. The heirs are more likely to contest the fees, and the . Professional executor save time and expenses As with anything else, a person who has done something hundreds of times is probably better at it than someone who has never tried. A professional executor is experienced, efficient, and has the right contacts. A professional executor knows the person to speak with at the bank rather than talking to 17 different banks. He knows which court clerk is the surly one and which one will push your paperwork through. He also knows which vendors have the best value for the cost (cleaning crews, painters, contractors, accountants, etc.). A professional executor also knows which services are not necessary. For example, staging an apartment for sale is expensive, but usually not necessary. We’ve seen staging bills as high as $20,000! As an heir, I’d be upset that my inheritance went to pay for something like that. Some contractors pitch pretty extensive renovations, like a marble countertop. Because it’s not their money or their house, some executors go into HGTV-mode. There is no need to knock out the walls; we just need to clean the home and make it look like it hasn’t been lived in for 40 years. There are circumstances where it’s beneficial to stage and renovate a home, but not for estates. The longer a probate property sits around, the more it will cost the estate. How much do banks charge to be executors? Banks are the exception; they will sometimes ask for special language in the will or trust opting out of state law and getting higher fees with higher minimums. A large entity, like a bank, doesn't want to be bothered with small estates and small fees. On top of that, most banks won’t agree to be your executor unless you have a decent amount of liquid money invested in their bank. We made a recent call to a bank who refused to act as executor for a $2.5 million estate. Even if you have enough money to qualify, you still need to wait for their risk analysts and committees to accept. It is a long process…. As you can see, it’s more cost-efficient to hire a professional executor than to choose your unemployed nephew. So if you don’t want to burden a relative or friend with the task, please check out my book, “,” available on Amazon. Request your free consultation /episode/index/show/simplemoneywins/id/27336825

E326 Why Not a Deadman’s Switch for Bitcoin Inheritance? 07/12/2023

E326 Why Not a Deadman’s Switch for Bitcoin Inheritance? A deadman’s switch is a seemingly elegant and trustless solution for bitcoin inheritance. But if you think it through, it currently has too many problems to work securely. A deadman’s switch is a protocol or mechanism where, if the creator misses a periodic check-in (ex. push a button every 3 months, reply to a monthly email, etc.), it's assumed the creator has died and will trigger an event. Types of bitcoin dead man switches With the first type of deadman's, upon failure to press the button, a pre-loaded transaction executes. Imagine that you set up your E*Trade account to sell a certain number of shares for a certain amount. Similarly, everything is “loaded up” in your bitcoin deadman’s switch, and the pre-loaded transaction automatically executes if the check-in is missed. What happens if you miss the check-in not because you are dead, but because you forgot? It all depends how you set up your plan. So it would be wise to have multiple check-ins required before the event is triggered. With another type of bitcoin deadman’s switch, upon failure to press the button, a secret gets delivered. The secret may be your seed phrase or pass phrase, and gets delivered by , or . to your heir or executor. Problems with a deadman’s switch that executes a bitcoin transaction First, this creates a . Even in non-bitcoin scenarios, people name beneficiaries on their accounts in order to bypass probate and distribute the account directly to the beneficiary without any supervision. The problem with naming beneficiaries on your life insurance, IRA, etc. is that people often forget who their beneficiaries are and they forget to update their beneficiary designations. Maybe they named an ex-girlfriend or a since-disowned relative. Bitcoin is also ever-changing and could be worth way more or less at the time of your death. You won’t know for sure how much your beneficiary will receive from this pre-loaded transaction. That’s a hard thing to try to keep up to date. If you forget about this pre-loaded transaction and it’s not up to date, it probably conflicts with the rest of your estate plan. Say your plan was for Alice, Bob, and Charlie to each get a third of your wealth. You figure that your stocks are worth about 1/3, your bitcoin is about 1/3, and your house is about 1/3. It seems clever enough to leave one of those to each of the beneficiaries, right? What happens if the assets fluctuate wildly in value in the remaining years until your death? Now your heirs won’t receive equal shares of your wealth like you intended. Another problem is that your bitcoin is stuck in the UTXO, which is a problem for creating pre-loaded transactions. You can’t move the UTXO without setting up a new deadman’s switch. It’s like having a bank account that can only have a beneficiary designation as long as you never withdraw or deposit into that account. You can never move the account to another bank. This only makes sense for the portion of your bitcoin that you plan to keep in deep cold storage. It's like a treasure chest that you bury. The last problem with this plan is that the transaction must execute to an heir’s wallet. What if your heir doesn't have a bitcoin wallet? Even if you set up a wallet for them, will they know how to use it? Do they know how to secure their seed phrase? You can set up a custody wallet on an exchange like Coinbase, Kraken, or Gemini. But most bitcoiners with self-custody don’t want their bitcoin going into a third-party wallet for their heirs. Problems with a deadman switch that delivers a bitcoin secret This plan has horrible operational security. You must write the secret (seed phrase, pass phrase, PIN) on a hot (online) computer. You must be able to trust the service’s servers, encryption, etc. And remember that the secret will be delivered via email, telegram, phone call, or sms text. This plan does everything you’re told not to do with self-custody operational security. You could instead use a multisig or shard your seed and give pieces to different people. But if you use those solutions, then you don’t even need a deadman’s switch. Why add another layer of complexity to a complex situation? A deadman’s switch seems attractive, because you don't have to trust anyone. But if you walk mentally through the scenario, you can see that using a deadman’s switch isn’t a great solution. Probate is a complicated process and adding bitcoin to the mix brings a whole new level of complexity. To learn more, check out my book, “,” available on Amazon. Request your free consultation /episode/index/show/simplemoneywins/id/27336795

E325 Do You Need a Lawyer to Make a Will? 07/05/2023

E325 Do You Need a Lawyer to Make a Will? Our Solo Agers friends often ask this when they’re ready to name me executor in their will. We support well-done and anything that helps as possible. Some kind of plan is almost always better than no plan! So, do you need a lawyer to make a will? No, we’re not aware of any state that requires a lawyer to make your will. We do nonetheless recommend that our Solo Agers at least hire a lawyer to supervise the signing. Here’s why: Signing ceremony technicalities A signing ceremony sounds like a long, drawn-out event, but it could last as little as 15 minutes. Still, there are many technicalities to follow, or else the will may be invalid. Just a few examples, the person making the will (the testator) has to make a proper declaration in the will. The pages of the will must also be stapled together, or else there is a potential for page-swapping. Lastly, to demonstrate that the testator is competent to sign a will, lawyers often chit-chat about current events with the testator. If testimony is ever needed to prove that the testator is competent, then the witnesses can refer back to that conversation. If any of the technicalities go wrong, then the will may be invalid. Yes, DIY services provide detailed instructions for drafting your will, but most people don’t follow instructions to a T (or even read the instructions). It’s easy to miss a step and invalidate the whole will. It’s much easier to get an experienced attorney to supervise the signing. It’s also cheaper than hiring an attorney to draft your entire estate plan. Lawyer-supervised presumptions In many states, the probate court will give the benefit of the doubt if the signing was supervised by a lawyer. For example, the court is more likely to accept a self-proving affidavit signed by your witnesses, instead of requiring the witnesses to appear in court to testify. Suppose you die 15 years later...tracking down the witnesses, getting them to agree to come to court, and having them accurately recollect your signing ceremony would be very hard. There is no guarantee that they will remember that day or even still be alive. Without the lawyer supervision and the self-proving affidavit, it may be harder for your executor to probate your estate. Best will witnesses DIY wills often use subpar witnesses. It’s natural to want to ask family and friends to witness, because they are close to you. Using a witness who is named in the will or who could potentially inherit your estate creates a conflict of interest. Their testimony as a witness won’t hold up well in court because they have beneficial interest. But, it’s also not the best idea to grab a passer-by as a witness (UPS delivery person, doorman, bank teller). If you don’t even know the witness, chances are it will be hard for your heirs to find them if ever needed. Sometimes the address they provide is the physical address where they signed! For these reasons, lawyers will provide their own experienced witnesses (paralegals, other staff, the lawyer’s spouse, etc.). These people have witnessed wills many times before and can give good testimony if needed. If you decide to do your own will, at least have the signing supervised by an experienced attorney. For more answers to your estate planning questions, click the link below to receive your free electronic copy of my book, “.” Complete this form to receive your complimentary copy of Anthony’s Amazon best-seller, “” /episode/index/show/simplemoneywins/id/27336687

E324 Top 5 Reasons Heirs Suddenly Need to Sell Probate Real Estate 06/28/2023

E324 Top 5 Reasons Heirs Suddenly Need to Sell Probate Real Estate Why do heirs suddenly need to sell probate real estate? We see cases where years, even generations, have elapsed since the real estate owner has died, and nothing has been done. So why, all of a sudden, do the heirs seek a lawyer or professional executor? Here are the top 5 reasons we’ve seen. 1. Bad economies mean heirs need money When there’s a recession, our office gets busier. It seems that when times are tough, (rather than a theoretical portion of an estate). It’s a bit counter-intuitive, since real estate prices are often down at these times and heirs would have to sell low. The heirs figure that even though the sale price is lower than in a strong economy, at least they’ll get some cash. 2. More deaths means more complications As more and more family members pass, heirs see . For example, mom died and left the house and 4 kids who all get along. The 4 kids don’t probate, but agree amongst themselves who will perform upkeep, who will collect rent, and how the rent will be divided. But then the kid in charge of upkeep dies and now no one is officially in charge of upkeep. Then the one in charge of making sure there is a tenant also dies, so his kids move in. Now there is tension among the family members who don’t all agree with the arrangement. You may not think your family will have these problems, but when money is involved, it can get messy. Once the original heirs start passing and those who were not part of the initial arrangement get involved, problems can snowball quickly. At this point, it is just easier to sell the real estate before it gets more complicated. 3. Tenant problems For example, grandma owned a rental property and for years after grandma’s death, tenants paid like clockwork. But . It happens all the time. It’s easy to stop paying rent and stay in the house when no one is enforcing payments. The heirs will find that they can’t take legal action until they start probate and get a court-appointed executor. Sometimes the tenants learn that no one is legally in charge yet, and that’s why they stop paying. It could be at least a year before an executor is appointed by the court. So, there’s at least a year rent-free. As a side note, often these non-paying tenants are also heirs. Oh, the humanity! 4. Creditor, co-op demands, no longer self-sustaining Sometimes heirs miss or ignore bills, then the creditors eventually get active. Just imagine an heir being diligent about paying all of the bills, but totally forgot about the water bill. Rather than the company shutting off the water, there is a giant outstanding bill after a decade. Sometimes an estate debt is so large that there is no choice but to sell the real estate. Or sometimes a co-op board looks the other way for a while, but now wants things done correctly and the estate needs to be probated. Maybe the rent used to be enough to cover all bills, but as time elapsed it’s not quite enough anymore. Maybe you didn’t raise the rent enough, or inflation caused your expenses to skyrocket. Now you have real estate that is generating a loss. 5. Property damage or disrepair A major storm may cause costly damage. could be mold, old/leaky roof, or floor/foundation problems. Maybe none of the heirs have the funds to fix these major problems to bring the home up to rentable status. If there are no other funds and the heirs don’t want to deal with it, then maybe it’s time to sell. Probate Book These are the most common reasons we’ve seen for heirs to sell real estate quickly. Two good books on the subject are, “” and “,” both available on Amazon. Request your free consultation /episode/index/show/simplemoneywins/id/27033108

E323 Top 5 Reasons They a Hire Professional Executor 06/21/2023

E323 Top 5 Reasons They a Hire Professional Executor When we chat with new clients, we ask them . Here are the 5 most common answers. Perhaps you will see yourself in one of these situations. 1. There’s no one else There may not be any close family or friends due to old age or because the client is a . Or maybe a client does have close family and friends, but they do not live nearby, they have no time, or they are not financially savvy. 2. Went through being an executor and hated it We have clients who Because they hated being an executor, there is no way they want to burden a loved one with the task. It could be the other way around: the friend or family member who they want to nominate was already an executor once and hated it, too. 3. Fees are the same, so you may as well get a professional Once clients realize that the executor fee is exactly the same for a professional executor versus a family member or friend, they can’t believe it! In most states, the law is the same. Whether it’s your unemployed nephew who needs money to start a rock band versus a seasoned professional with an experienced staff versus a bank: If you have that choice and the fees are going to be the same, why wouldn’t you name a professional executor? In fact, hiring a professional executor may even cost less. An experienced and professional staff can reduce costs due to economies of scale, better deals with vendors, etc. We minimize a lot of losses because we can often do things quicker. 4. Banks won’t take the client or charge fees or require certain investments Many come to us after being rejected by their bank/brokerage, even if they have plenty of money and have been loyal customers for years. Or sometimes, they are in the process of getting the bank to agree to serve as executor. But there are so many layers of committees and approvals from the bank. Those people come to us because we provide a more personal experience. With a bank, you’ll never talk to the person who will be the executor; it’s just “the bank.” Lastly, people don’t like the bank’s requirement that a certain amount of money must be invested with them to qualify. You probably need between $3 million and $5 million just to talk to the bank. The bank also requires very specific investments: your money has to be invested in Brokerage Account “A” and the underlying investments must be in the Brokerage's created funds. To put it bluntly, this is how banks can charge more fees. 5. Age gap siblings This is similar to our #1 reason above, but more often we are seeing age gap siblings. Since we’ve been seeing this specific situation more often, we thought it was worth mentioning as its own reason. For whatever family reason, we’re seeing clients whose next closest sibling is 25 years older or younger! They don’t have a tight relationship due to the large age gap. On the other hand, we have clients whose siblings are almost the same age, which doesn’t give an elderly client much hope that a fellow elderly sibling will be able to fulfill the duties of an executor. You want someone who will survive you or be young enough to handle stressful situations. These are all great reasons to check out my book, “,” available on Amazon. If you are part of our monthly email list, we give away one free paperback copy a month! Request your free consultation /episode/index/show/simplemoneywins/id/27033081

E322 Multisig versus Passphrase with a Bitcoin Executor 06/14/2023

E322 Multisig versus Passphrase with a Bitcoin Executor Multisig or a passphrase ("") are two ways to transfer custody to your bitcoin executor upon your death. Let’s compare, so you can decide which best fits your bitcoin inheritance plan. Why multisig for bitcoin inheritance? The main feature is , so that it’s not catastrophic if just one of your keys is revealed, leaked, or hacked. While you should always be careful of how you manage your security materials, using a multisig allows you to be a little less uptight with your security practices. By contrast, if all of your stash is in a singlesig wallet, then access to that one key could cost you all of your bitcoin. If one key is lost, you lose it all. If one key is hacked, it’s all stolen. Also, this is not necessarily what’s best for estate administration (), but rather the immediate transfer of custody to your executor. So this is not about how your executor will hold your keys during his tenure as your executor. This analysis is specifically regarding the pros and cons of how smooth the transfer will be from you to your executor upon death. Lastly, the general pros and cons of multisig vs. singlesig with a passphrase (multi vs. single vendor risk, costs of multiple hardware wallets, ease of setup, etc.) are beyond the scope of this analysis. For the purpose of this discussion, we are just looking at the pros and cons of transfer to your executor upon your passing. Leaving a passphrase for your bitcoin executor First, we’ll look at using a as a poor man’s multisig for your non-bitcoin executor. Your seed phrase and your additional passphrase combine as an imperfect 2-of-2 multisig of sorts. A passphrase would be easier for a non-bitcoin executor, in theory, because it feels more like just a second password. By contrast, multisig can be more intimidating: and feel like those movies with a nuclear submarine where the captain and the first mate must each put a key in and turn on the count of three... If you or your executor lose your passphrase, there’s at least theoretical hope to recover it with enough computing power (depending on length and complexity of the passphrase). People are not too great about choosing phrases randomly, and often use short passphrases that are easier to remember. A lost 12- 24-word seed phrase could not be recovered for the foreseeable future. You could also hide your passphrase in plain sight, so that it’s easier to transfer to your executor. For example, writing a letter to your executor, where every fifth word comprises your passphrase. My understanding is this is poor opsec with a 12- or 24-word seed phrase, because seed phrase words are a finite set, and hackers have algorithms to scan text for seed phrase words. But be aware: passphrases are not really designed for this, and there’s not much support for its use as a poor man's multisig. A non-professional executor may have trouble finding information online about passphrases as a 2-of-2 multisig. Whereas there are companies that, for a consultation fee, will take the time to walk the executor through the multisig process. How your bitcoin executor will handle your multisig With a , there are three independent keys (seed phrases and/or hardware devices), and you need two of them to access the bitcoin and make a transaction. Multisg has more leeway for error: even if you lose one key, you still have two and can recover. This provides a margin for error in terms of catastrophic loss. With a passphrase (or any 2-of-2) set up, there are only two "keys", so if you lose either one, you can’t access your bitcoin. A second benefit of multisig is that each key is strong and offers full protection because each key is a 12- or 24-word seed phrase, created with the fully researched cryptography security. Whereas you create your own passphrase, and we're all pretty bad at being sufficiently random (admit it, we use our kid’s name, anniversary, favorite movie quote, etc. as passwords). Lastly, multisig has lower “smudge risk” than a passphrase. Since 12- or 24-seed phrase words comes from a finite set of possible vocabulary words, if just of the handwritten seed words and smudgy, there is still good a chance of figuring out the word. But since your passphrase can be any word, in any language, or even gibberish, guessing a smudged word would be complete guessing. The focus here is how your executor will solve the puzzle after your death so your bitcoin isn’t lost. For further reading on what executors deal with in general, check out my book on Amazon, “.” Request your free consultation /episode/index/show/simplemoneywins/id/27032979

E322 Multisig versus Passphrase with a Bitcoin Executor 06/14/2023

E321 The Frictionless Solo Ager Estate Plan 06/07/2023

E321 The Frictionless Solo Ager Estate Plan A frictionless first estate plan is a great first step for Solo Agers with no plan at all. It helps Solo Agers clarify their thinking and decisions, all while having a basic plan in place in the meantime. Why Solo Agers need a frictionless first plan We’ve heard from many folks who are stressed because they have no plan whatsoever. In general, Solo Agers don’t have the traditional heirs and family members available to fill the executor role, so it is important to have something in place. The reason why many Solo Agers don’t have a plan is often because of analysis paralysis. While estate planning is a series of decisions, some people get stuck analyzing every detail. Of course, there is also the fear of making the wrong decisions and the consequences that come from that. The biggest fear is choosing the wrong fiduciaries. Why a frictionless plan? A frictionless plan is a version of your estate plan that is as low-cost and as low-headache as possible. When your estate plan is low-cost, psychologically it is easier to make decisions, because you realize that it’s not a big deal to make changes if needed. People feel more at ease when spending a few hundred dollars versus a few thousand dollars to create a plan and make changes when needed. Low-cost solutions allow you to easily reverse or change your plan and not feel like it is set in stone. With a low-cost solution, the fear of making changes won’t prevent you from having any plan at all. Example of a frictionless solo ager estate plan Our plan for a frictionless Solo Ager estates includes three steps: First, make a do-it-yourself will using one of the software programs that we’ve reviewed. One that we are currently recommending is Free Will. For basic wills, it gets the job done. Second, name a professional executor. If you feel comfortable with us, name us for now. It doesn’t have to be your final decision; you can change the executor any time. Third, have an attorney-supervised signing. This is the biggest (low) cost involved. The reason we recommend an attorney-supervised signing is because there are a lot of technicalities to having a legally binding will signing. If you mess up even one or two parts, all of your hard work becomes moot. In the New York area, you can hire an attorney and their staff to witness the signing of your self-prepared will for $200 or $300 (compared to the thousands of dollars to hire an attorney to draft your estate plan). The cost of an attorney-supervised signing could be even lower outside of the New York area. We hope that by outlining these low-cost options, you will be confident in creating a bare-bones plan as a safety-net to get you started. Free copy of "The Solo Ager Estate Plan" To learn more about estate planning for Solo Agers, click the link below to get your free copy of my book, “.” Complete this form to receive your complimentary copy of Anthony’s Amazon best-seller, “” /episode/index/show/simplemoneywins/id/27032880

E320 How to Get Updated Letters Testamentary 05/31/2023

E320 How to Get Updated Letters Testamentary Let’s discuss how, why, and how long it takes to get “fresh” Letters Testamentary in New York. Fresh letters simply means that they are newly dated. Most of the time, , and during that time, you may need to get fresh copies of the letters to use. Do letters of testamentary expire? One question we get is “” Technically. It’s not as if your executorship has ended and you need to renew it. Rather, letters are a certificate proving you are still the executor. For example, if you walk into a bank with your letters that are over a year old and you want to close the account, the bank will very likely accept them. In the last year a lot could have happened – the court could have removed you as the executor, the letters could have been suspended, or there could have been other issues. They want letters that have been issued within the past 30 days (or in some cases 60 days) to prove that yes, you are still the executor, and all is good. How to renew letters testamentary In the past, getting newly updated letters was relatively easy. You could walk into the court with $6 and they would simply print the letters and you would walk out with them. You could even mail in a request and get them back within a reasonable timeframe. The exception would be if the court is missing items in the probate file, such as affidavits, inventories, etc. It is the court’s leverage to make you fix any issues before they give you fresh letters. This doesn’t mean the letters have been revoked; it’s just the court’s opportunity to get something they need in return for something you need. Fresh letters delays in New York in 2023 Now, getting quick letters are not happening. The court no longer allows you to visit the counter or walk in with your money and request. You have to upload a request for fresh letters online. Sounds easy, right? Here’s the issue – the courts are at least three months behind processing online filings. So, for example, requests uploaded in December are finally being processed in March. This doesn’t account for anything you may need to fix, which will add even more back and forth time. If you have something important you need letters for (a real estate closing, for example), then you will need to plan well in advance for this. One option is to order letters right as the property is listed, possibly even before. You do run the risk of actually getting the letters quickly and them being outdated before the closing. In which case, you would need to order them again. You could get around this by ordering them every month or every other month until the closing to be sure that you have them. It may seem wasteful, but unfortunately, not having the letters could delay the closing (which is much more expensive than a few extra copies of letters). Probate isn’t a quick process as it is, which is why it’s best to set expectations early in the process. Check out my book, “,” and when you get to the chapter on delays, just add on more time. Unfortunately, that’s the way things are right now. Request your free consultation /episode/index/show/simplemoneywins/id/26721324

E319 Top 5 States Looking for Professional Executors 05/24/2023

E319 Top 5 States Looking for Professional Executors As we’ve spoken about before, Anthony can be your professional executor, . We have been seeing many inquires from out of state lately, and these are the top 5 looking for Anthony to be their professional executor. We are located in New York, so we are not including New York inquiries on this list. While this isn’t a scientific study, this is what we are seeing based on our daily calls. Georgia First on the list, much to our surprise, is Georgia. Maybe because it is retirement friendly, which we have learned that it is. There is low sales tax, no inheritance tax, low income tax, real estate is “more bang for your buck” compared to other states, and it’s warm and super friendly. Although it is retirement friendly, we aren’t seeing that there is a large network of professional executors there. It works out for Anthony, since he spends most summers in Atlanta and is very familiar with Georgia. New Jersey This is less of a surprise, as it’s right across the river. We’ve found that a lot of New Jersey folks seek out New York professionals, thinking they will get a “city caliber” professional. It doesn’t matter where your executor lives, the fee is set by New Jersey state law. So, whether it’s a professional executor or a non-professional such as your nephew, they will get paid exactly the same. So, you may as well get the most for your money. And for Anthony, he’s in New Jersey often, so this is fairly easy for him. Texas Third on our list is Texas, and we don’t really have an explanation for this one. Perhaps, like Georgia, maybe it’s a good place for retirement. Again, while searching online, we are not many professional executors. But why Anthony? The only thing Anthony can think of is that in real life, he tends to get along well with Texans. Maybe the viewers and listeners sense that and want to work with him? After all, a professional executor is someone you will work together with, at least annually, so you should definitely have a good rapport. This state also works for Anthony, because he does travel to Texas often. California Fourth, and possibly the most surprising is California. It’s far from New York and on paper, it doesn’t seem like a good fit. California even as a fairly robust local professional fiduciary industry. They even have a certification and a trade association for professional executors. But for whatever reason (maybe the requirement of upfront fees by CA executors), clients want Anthony all the way in New York. Believe us, in California – he loves it there! Florida Last, but not least is Florida, and this makes the most sense. It’s a huge retirement state. However, for legal reasons, serving as a professional executor is problematic. Anthony can’t actually not serve as a professional executor in Florida, because he doesn’t live there. Only blood relatives may be out of state executors. But there are ways to deal with this. Anthony can be a nonresident Trustee for a Revocable Living Trust. Trusts are becoming very common in Florida to avoid probate. Clients who want to work with Anthony find this trustee workaround a great option. And again, he has no problem traveling to sunny, warm Florida, which he does often. If you want to find out what is required of an executor, I suggest reading Anthony’s book, “.” Request your free consultation /episode/index/show/simplemoneywins/id/26721201

E318 Bitcoin Inheritance Needs Layers 05/17/2023

E318 Bitcoin Inheritance Needs Layers As you may know, Bitcoin does not have layers like legacy and traditional accounts do, so an inheritance plan needs to be created. We will discuss the drawbacks of constantly seeking and getting stuck on a “perfect” Bitcoin inheritance plan, and a few solutions for approaching the creation of these layers. Legacy assets have inheritance layers, bitcoin does not Legacy assets (banks and financial institutions) already have several layers or contingencies that you may not even realize. On the testamentary side (deciding who gets what), there may be a will, a trust, beneficiaries on the account, or payable on death designations. If you don’t have any of those, there are still default inheritance state laws called intestacy laws. Basically, even if you do nothing, there is a safety net of who gets what, and there are backup layers. You could name backup heirs, successor executors, etc., but even if you don’t, the intestate laws will dictate inheritance. This is not the case for Bitcoin. The other side of inheritance is custody, since so many Bitcoiners self-custody. When you have Bitcoin assets on an exchange, you have a few failsafe layers. This includes password recovery. While you are living, you could contact the institution to gain access. When you pass, your heirs have a third-party custodian that they can turn to for assistance with accessing and liquidating. With self-custody, you don’t have this naturally built in to turn to. Worst case, with traditional and legacy accounts, there is the process of unclaimed funds. This is where the assets go to the state after a certain amount of time if they are not accessed. This is in place, so the money doesn’t simply disappear or get lost. Bitcoin does not have anything like this yet. Again, Bitcoin self-custody has few to none of these fail safes as of right now. “Perfect” bitcoin inheritance solutions Anthony has spoken with many Bitcoiners, and he keeps coming across the same problem – people are getting stuck waiting for the “perfect” inheritance solution. The plans, ideas, and visions for are different for each Bitcoiner, based on their level of security and knowledge. But for everyone it is important that you do not wait. While you’re working on your perfect plan, for the time being. You need a safety net. If you worked really hard on your perfect inheritance solution and you believe it will work, great. But what if it doesn’t? There are no layers or fail safes in plan with Bitcoin self-custody. So, it’s up to you to create all of these layers, backups, safety nets, etc., so the funds aren’t lost. How to make bitcoin inheritance layers Start with a layer that you’re HIGHLY confident will work, even if you don’t love it (for example, it relies on a third party, exposes your KYC, etc.). Once you have that in place then add layers that increase your comfort and increase complexity. But keep in mind, increased complexity may increase the risk of not working. Here is one example: First is the base layer and one way to do this is to create a . If you have a single sig hardware wallet, you can give the seed phrase to your heirs and successor heirs (your wife and children perhaps), store a handwritten copy of your seed phrase in safe deposit box, and give your passphrase to bitcoin-savvy friend or professional bitcoin executor (executor and successor) named in your will. Again, you may not love this for privacy reasons, but you are fairly confident this would work. Now, with the base in place as your safety net, you can do whatever you want. You can teach your heirs in hopes they will understand self-custody enough to take custody on their own with a and treat it as . Again, remember you are not creating your perfect plan, you are creating your own safety net until you have your perfect plan. Check out my book, “,” to get an understanding of the probate process. Then add all the extra steps your executor and heirs will need to do to administer your bitcoin. As always, please reach out with your questions and feedback! Request your free consultation /episode/index/show/simplemoneywins/id/26721117

E317 Can You Sell Your Inherited Property? 05/10/2023

E317 Can You Sell Your Inherited Property? We get this question quite often – can you sell your inherited property? The answer to this depends on many factors. First, you need to figure out if you can sell an inherited property. Here are a few steps for you to take to answer this, before you can decide if you need a probate lawyer or professional executor. Check the deed to confirm you inherit First, check the deed to see if the decedent actually owned the property. Some people stay in a home long after another relative has passed or they are long-term renters. It’s actually easy these days to get a copy of deed online. One example is . Most other states and counties are similar. One note – it is a bit harder to obtain documents for co-ops ( during the probate process). You would need to call the management company for the information, which is sometimes like pulling teeth. They will need to check their internal records for the owner, and they may not provide you with the information. Once you have the deed, you want to clarify the owner. Is it the decedent? Was it in a trust? Is it in some other relative’s name? Let’s say it’s your uncle who passed, but he actually moved into the house after your grandfather passed years before. It could likely still be in your grandfather’s name. That would add a few layers of complexity to ownership. Deeds can also have joint owners, and co-ops can have beneficiaries. If there is a joint owner or beneficiary, and it’s not you, then you don’t own it. What happens to a mortgage when house is inherited? The next step is to see if there is a mortgage. When someone passes, the mortgage has to be paid off. So, it’s important to find out if there is a mortgage and how much it is. It doesn’t mean the heir is immediately on the hook for the mortgage payments, but it does need to be settled before the house is sold. If the mortgage amount balance is really large or underwater, it will definitely affect how you approach the estate. If the estate is close to or completely it makes the estate very , which changes how the estate is administered. Checking for a mortgage is similar to checking for a deed. Except for co-ops, mortgage information may be found online, on the statements that come in the mail, tax assessment offices, or on tax returns. In addition to searching for mortgages, you also want to look for potential larger debts. If there are tax debts, public assistance or Medicaid debts, second mortgages, etc., these debts must be paid first before anyone can get paid out from the proceeds from the real estate sale. Did you inherit tenants, too? Lastly, to determine if you can or want to sell the property, you need to figure out if the property is occupied. Did you inherit tenants? Is it vacent? If it’s occupied, it will affect how you approach the estate. For example, if there is another heir living there and won’t leave, that is a whole set of additional problems. If it’s an actual tenant, it’s not as clear cut as one would expect either. More often than not, tenants after the owner pass create problems and lose their moral compass. Evicting or removing tenants is . It may change your approach to selling the property. Check out Anthony’s book, “,” which will break down what is involved with administering a decedent’s estate with property. Request your free consultation /episode/index/show/simplemoneywins/id/26721000

E316 Estate Planning Dos and Don't Bothers for Solo Agers 05/03/2023

E316 Estate Planning Dos and Don't Bothers for Solo Agers Since we do so many probates, we see what parts of your planning actually helped with probate (dos), and which ones didn’t really matter (don't bothers). We are reviewing this info so that you don’t spend too much of your valuable time on planning that won’t help all that much. This is based on our annual executor check in calls, in which we hear from our clients who have well intended plans to gather information for us, should we need it. Which in most cases, we don’t. We are trying to save you stress and make the estate planning process a little bit easier. Solo ager estate planning “dos” Good and proper is important. It’s best to keep the original with your professional executor or other third party. Do not keep it yourself. This is for many reasons, such as access your home or apartment. Additionally, if a third party loses your will, probate could still move forward with a copy. However, if you lose it, it’s presumed that you intentionally destroyed it. Same goes for a safe deposit box – it’s hard to get access to this. It’s not impossible, but it’s very challenging. Update your emergency contacts and be sure your executor is among those listed. An emergency contact list should be given to someone who will know of your death. This could be a building manager, doorman, neighbor, primary care physician, etc. You want to make sure they know who to notify in the event of your passing, including of importance, your executor and next of kin. You should also review your beneficiary designations. We have talked before about , but if you have them, make sure up to date. Or better yet, get rid of them. You certainly want to make sure they represent your wishes, and not your wishes 10 or 20 years ago. “Don’t bothers” for your solo ager estate plan Don’t use treasure maps. We have received detailed letters and emails with where the will is, where their important documents are, and even where their spare keys are. More often than not, the location of these items will change by the time of your passing. It may take us longer to use the treasure map to find them than it would to simply look on our own. Plus, it would be a waste of time searching if they have been moved. It’s not worth the amount of time you’d spend writing this type of “map.” We don’t need contact lists. Typically, the lists we’ve seen include building managers, financial advisors, etc. These change often. We find when we make these calls, the people on the list no longer even work there. Speaking of lists, detailed lists of assets which include balances and very specific info is also not needed. High level information is good enough (such as the name of financial institution). Balances change daily, so by the time you write it down, it’s likely changed. Sort of helpful There are a few things we would categorize as sort of helpful, but you don’t need to spend time on these, if you don’t want. Password lists are one example of a sort of helpful thing to do. A list is nice to have, but post-death access to online accounts is not permitted, even if we have your password and log in. We simply can’t use those passwords. Email and social accounts may have some use to be able to access names and addresses, although again, we have rarely used these. Same with phone passwords. We seldom log into a decedent’s phone, and if we do, it’s only to find a contact name that we couldn’t find elsewhere. A high level asset list is sort of helpful. It will give us a general sense of what you own to point us in the right direction. We would use this list along with the other items we collect (mail, past tax returns, bank statements, etc.) to be sure we aren’t missing something. A list of contacts that are likely to not change is also sort of helpful. This includes next of kin, your primary care doctor, and possibly your CPA. It’s good info to know, but likely, we would get the newest information from the documents we have gathered. Solo Ager Book If you don’t already have my book, “,” click the link below for a copy. Free copy of "The Solo Ager Estate Plan" Complete this form to receive your complimentary copy of Anthony’s Amazon best-seller, “” /episode/index/show/simplemoneywins/id/26720889

E315 How to Probate a Hoarder Estate 04/26/2023

E315 How to Probate a Hoarder Estate As you can imagine, probating a hoarder’s estate adds a few more complications. In this episode, we will talk about how to deal with some of the main challenges. A hoarder can be defined as someone that likes to keep a lot of things; those that hold on to items with little value. As an executor, we define it as a situation where it’s abnormally difficult to navigate the living quarters. For example, a hallway that isn’t a hallway. Or trouble opening a door, because there are items blocking it. How much does it cost to clean a hoarder’s estate? On average, to clean out a hoarder’s house, it will cost about two to three times as much as it would cost to clean out a similar living space of the same size. We’ve chatted about the , which can add up in a typical situation. For example, if you’re cleaning out a hoarder’s one-bedroom apartment, the cost will be the equivalent of a two-to-three-bedroom home. The reality is that you will need more movers, trucks, and dumpsters. Another level of additional cost is dependent upon the cleanliness, which you may not know until the stuff is removed. You may be facing possible additional safety/hazmat costs, depending on the severity. How to find important items in a hoarder probate Another twist when you are dealing with a hording situation in probate, is how to find important items in the home. Even in normal (or conventional, typical) estates, it can be hard to track down important items. For example, executors need to look and find estate planning documents, tax returns, or tangible gifts such as art, jewelry, collectibles. There’s a much higher risk of not finding these items when the home is in this condition. In addition, it makes the cleanout process much slower. Typically, we can find the items before it’s cleaned out. But, in a hoarding situation, we have to wait for the movers to clean out walkways to access areas to search. They are helping us gain more elbow room and to be able to navigate the living area. It’s a move items, search for items, move more items, search for more items game. You have to search as they are cleaning, which prolongs the process and adds time and money. How to protect a hoarder’s reputation during probate Another layer is how to protect the reputation of a hoarder during probate. Most hoarders aren’t proud of their situation, how much stuff they had, how they lived, etc. In this case, more than a few hoarders have explicitly asked us (as their ) to hide the situation from family, friends, and neighbors. We’ve talked previously on . We are happy to do this for them. We will select our cleanout crew carefully, making sure they have a high level of professionalism and discretion. We’ve seen crews that have someone at the door nudging along nosey neighbors and some that even set up barriers to block the view in the home. In a building setting, even requesting the assistance of the building managers is important, as they are the first line of gossip defense. If you want to find out what is required of an executor, I suggest reading my book, “.” A non-professional executor may get overwhelmed by this particular situation. In addition, hiring a professional who will adhere to your request for reputation protection in a hording situation is important. Request your free consultation /episode/index/show/simplemoneywins/id/26450190

E314 Nonprofessional Executors Don’t Get Paid 04/19/2023

E314 Nonprofessional Executors Don’t Get Paid Could you imagine doing a ton of work and not getting paid? It’s frustrating, but it happens. One of the drawbacks of nonprofessional executors is they are more likely to lose their executor fee, despite doing months, even years, of work for the estate. In this podcast, we are going to discuss a few real-world instances where this happened. We want to help you see that this can happen and that you don’t want to take on the executor role expecting a nice piece of change for your hard work. It sounds like a decent payday, but as we’ve discussed before, to amount paid is not equal, and you may not even get a penny. Family changed their minds, denied his executor fee In this case, “Joey’s” aunt passed away and the aunt was survived by siblings. Joey was not even an heir and didn’t even live in New York, but he was younger and financially savvy. He was in a position to defer his job offer to focus on being an executor. Of course, his family “graciously” agreed to have him serve as executor. So, Joey and deferred a legitimate job offer. He put in three years of hard work administering the complex estate. In the end, his uncles objected to Joey getting paid. Literally at the very end, right as disbursement checks were being written out. Yes, he did have the right to fight for this executor commission, but it would put the family at odds with each other. So, for the , Joey didn’t fight. He . For those that think this would never happen to them or to their families, we hate to be the bearer of bad news, but it happens often, unfortunately. Family drama can happen when you’re dealing with emotions and money. Contested will, contested executor commission In this second situation, “Linda” was named as executor in her aunt’s will. Some family members contested the will, and after a lengthy and expensive litigation, the family settled on a revised breakdown of their inheritance. Side note – this was a good case where the decedent should have made a better During all this time, Linda, as the executor, was doing all the grunt work for over a year to vacate, repair, and sell her aunt’s dilapidated house. She also had to deal with the very stressful process of . She did a great job. Again, , right as checks were about to be sent out in accordance with the negotiated settlement agreement, the contesting family objected to Linda getting an executor commission. So, the family litigated that too, and Linda unhappily eventually settled on a reduced commission because the legal fees would’ve kept adding up to keep fighting. We watched her work so hard to eventually get less than deserved. Could you imagine working your normal full-time job to then get notice of a large reduction at the end of the year? Court denied her executor compensation “Kristy’s” good friend named her executor because Kristy happened to be a lawyer (though not a probate lawyer). Her friend made a . Only when her friend passed and Kristy began probate did she learn that since she’s a lawyer (even though she wasn’t a probate lawyer and wasn’t acting as a lawyer for her good friend), the will needed certain additional paperwork and affidavits. In the absence of this paperwork and affidavits, the Court cut Kristy’s executor compensation in half! Kristy spent multiple stressful years dealing with her friend’s estranged yet demanding heirs, banking issues, and other complications. In Kristy’s own words, she said that being an executor was “not worth it,” and she was a little embittered to her friend for putting her in such stressful role. These are a few reasons that we talk about professional executors. If using a professional executor, family dynamics wouldn’t be a factor and there would be less of a debate by the family regarding the executor receiving their fee. Executor To learn more about hiring a professional executor, so this doesn’t happen to a friend or family member, check out my book, “,” available on Amazon! Request your free consultation /episode/index/show/simplemoneywins/id/26450151

Anthony S. Park

TOPICS