Skip to main content

McKinley Carter Receives '2023 Best Places to Work' Award from InvestmentNews

I Stock 960516472 MM Gblog APR2021 USE

Estate Planning Can Lead to Easy Estate Administration

Photo of author, Monica Garver, CPA, CFP®, AIFA®, CDFA®.
Monica Garver, CPA, CFP®, AIFA®, CDFA®
Director of Retirement Plan Services and Financial Strategist

My mother passed away from COVID-19 on January 8, 2021 in Johnstown, PA, and her estate was completely distributed and taxes paid by March 31, 2021. It is through my personal experience that I wanted to write this blog about the basics of efficient estate planning and administration.

Monica Garver and her mother Emily taken on St. Patrick's Day 2018.

Let me frame the Date of Death "balance sheet" for you. My mother was in a skilled nursing facility for the last 3.5 years. So, she had no real estate nor any vehicles. At her death she owned two life insurance policies, a traditional IRA, a ROTH IRA, a brokerage account, a savings account, and a checking account. All in all, she owned seven financial assets that I, as the Executrix, had to distribute upon her death.

Her funeral was 100% planned (down to what the readings and songs were to be at her service) and completely paid for via a CD (Irrevocable Burial Reserve) that the funeral home owned at the time of pre-payment in May of 2016. Gravesite and tomb stone were also 100% pre-paid. Her total assets exceeded $500,000. So, it was not a “small” estate under Pennsylvania law, which is defined as $50,000 or less.

No assets passed by Will other than her personal property. So, there was no drawn-out probate process. Her brokerage, checking, and savings accounts were titled TOD/POD (Transfer on Death/Payable on Death), dividing the assets equally to my brother and me. Titling assets TOD/POD with beneficiaries allows for these assets to pass by operation of law (rather than by the terms of a Will). We received the distribution of her savings account within 14 days of death.

Life Insurance and IRA accounts passed by Beneficiary Designation, again, avoiding probate. Presenting the death certificate to the custodian of the IRAs and life insurance companies was all that was required to get these assets easily and quickly distributed. My brother and I established Inherited IRA accounts at the same custodian to make the process even easier and more timely. All insurance proceeds and IRAs transferred within 45 days of death.

I used a simple form letter with a copy of the death certificate to inform and close her three credit card accounts. No other outstanding debt existed except for a few lingering medical bills.

When my mother entered the nursing home, we cleaned out and closed her safe deposit box to understand what was in there and simplify estate administration upon her death. I was her Power of Attorney, which enabled me to do so. Note: After the death of an owner, a safe deposit box must be properly inventoried by the executor or personal representative according to specific procedures that generally may include the presence of the Clerk of Court, a Deputy Clerk, or other Qualified Person as defined by law. Each state has its own rules.

Bottom Line: The process was easy, efficient, and very timely. There were no costs other than $500 for attorney’s fees, which included the preparation and filing of the PA Inheritance Tax Return.

Always coordinate with your estate planning attorney and your financial advisor before making major changes to your estate plan, and consider these stress-reducing and logical estate planning actions:

  • Use TOD/POD account titling
  • Pre-pay all funeral and burial costs
  • Clean out and close the safe deposit box
  • Make sure current beneficiaries are up to date and accurate

Thanks to my parents taking actions while they were alive, I was able to minimize the time I spent in estate administration — you can too. Call us at McKinley Carter if you have any questions. We are here to help and ease your burden as well.

Related Insights
I Stock 1223929743 negotiations CJB USE for blog

Negotiation Skills: The Key to Unlocking Better Salaries, Contracts, Prices

Negotiation skills are essential in many aspects of life, from job interviews and salary negotiations to purchasing a car or negotiating contracts with vendors. By learning how to negotiate effectively, you can increase your income and savings, as well as improve your overall confidence and communication skills. Learn more.

Read More
I Stock 1305360183 CMP B Log copy 3in

Attention Skeptics: Unclaimed Property Notices May Be Worth Looking Into

We’ve all heard the statement that If it’s too good to be true, it probably is. Unfortunately, we’ve become so conditioned to ignoring items that fall into this “free found money” category that we cross the line from skeptical to cynical. Skepticism is healthy, cynicism is not. Even the statement itself contains the word “probably.”

What I’m referring to here is the unclaimed property accounts all states have. You may have seen articles or ads telling you there might be money in your name, and all you must do is fill out a form to get it. It definitely sounds like one of those too good to be true proclamations. However, in this case it isn’t. Here's why it may be worth your while to look into it.

Read More
I Stock 1342418985 copy women USE

Introducing The SAVVY: Financial Education Just for Women 

At McKinley Carter, we recognize we are uniquely situated to help women “do better” with their money. We are so proud to announce the launch of The Savvy – A Society of Women Pursuing Their Ideal Life. The Savvy will bring real world financial tips, insights, and education directly to the women we serve through digital communications, in-person events, and one-on-one conversations. Learn what's coming in 2023 and beyond to help women better embrace their relationship with money.

Read More
Play