Mom's Estate: Credit Union Surprise. Maybe.

Here is how it started.  About two weeks ago, I was scanning a patient and he was telling me why he could not void his bladder completely. ( I know, weird topic)  He would have to sit in meetings with lawyers because he is a fancy-dancy retirement CPA, CFP financial planner.

I told him of my experience with my mom's financial planner and how she helped me transfer my mom's IRA to my name without incurring any penalty.  We met, I signed papers, and that was it.  She has not contacted me since.  Nothing.  I have little to no experience with Financial planners and don't really know what to expect from them.  Mom's IRA is fairly sizable, so I may feel a false sense of entitlement and need of her attention.

I shared my experiences with my patient and that I am also going through probate with mom's estate.  That is another interesting experience.... Note to self:  Don't lose the original will.  I know, I know....well I know now just how important an original will is.  That is a whole  other post.

I also expressed how mom had a Safety Deposit Box  at one bank and savings and CD's in the Credit Union and that I was not able to get access to the Credit Union accounts.  Granted, up to now I never tried to get access to the Credit Union accounts.  I thought I had to wait for Probate.

My patient ( financial planner guy) said I should check out the Credit Union accounts to see if mom had designated or filled out a beneficiary or transfer on death form.  Sounded good to me.

Yesterday, I went to her Credit Union to see what was going on with her account and if I could find out if she did fill out a beneficiary form.  The representative made copies of the death certificate, and then she quickly searched the forms on the computer that mom signed.  She searched them rather quickly as I was kinda looking over her shoulder.

She then said she had to call the "death notification department"  okay, I don't know if that is what she really called it, but it was something like that. She left me sitting in her cubicle and went to make the call.  A few minutes later, she comes back over and says the the "beneficiaries" will be notified by mail.  What??  What does that mean?

She said she that was all she could tell me.  I said, but I am her personal representative, I have a copy of her will here that proves it.  She said it does not matter.  I said, so You can't tell me if I am one of the beneficiaries?  No, she said.  She could not.  She repeated, that the beneficiaries would be notified in the mail.

This did not sit well with me.  At all.  But I was getting nowhere with this chick. I asked for a number to call so I could talk with the "death notification department" myself.  They basically told me the same thing.  Whatever.

What bugs me about this is that mom never told me about these accounts, and I have no idea about anything.  That is what bugs me.  And deep down, I really think I should get the money.  And to find out that there maybe more beneficiaries and I may or may not be one of them really bugs me.  I just wish she would have told me.  I don't like being blindsided and that is what it feels like.  This is so typical of my mom. Secretive and manipulative.    I guess I am mad at myself too.  I let my guard down.  Again.  Or I just may be overreacting.  I guess we will all wait on the mailman, won't we?


And what about the financial planner guy?  He gave me a card.  He then called my work and left a message. More about financial planner guy in a later post.    

Who Knew Mom Had a Financial Planner?

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Not me.  At least not while she was alive.  As I was going through mom's papers over the last few weeks, I found papers with her financial planner's contact information. I  gave her a call about two weeks ago and we had our first meeting last evening.  Suzanne was shocked that mom had passed.  When she met with her in February of this year, mom was doing pretty darn good.

There are more new terms that I have learned this week.  Required Minimum Distribution:    (RMDs) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age or, if later, the year in which he or she retires. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the RMDs must begin once the account holder is age 70 ½, regardless of whether he or she is retired. 

As her surviving beneficiary, I too am required to take Required Minimum distributions from her IRA.  The calculations are based on an IRS tax table based on my age.  Since she did not take distribution this year, I will be required to start taking distributions this year. I am considered a non-spousal inheritor:

 When you transfer assets from a traditional IRA into an IRA beneficiary distribution account (inherited IRA), the rules for MRDs still apply. This means you must withdraw a certain amount of money from your inherited IRA each year, based on your age and life expectancy. In the case of a non-spouse inheritor though, MRDs will need to begin before the inheritor reaches age 70½. These distributions may be taxed as ordinary income. However, if the original IRA was a Roth IRA and the assets were in the account for five years or more, distributions may be tax free. Consult a tax adviser if you feel you’ve inherited a Roth IRA that wasn’t opened for five years before the original owner passed away.

 The transfer is in place.  What happens next?  There are  her accounts that I do not have access to.  Those are going through probate.  When that is all done, I will more decisions to make with the remaining money that is in those accounts.  Pay off the house??.....Buy new used car??.....  Definitely getting new windows!!  

In the next couple of weeks I need to make an appointment with my CPA.  Big changes in our financial situation will need good advice so we don't pay Uncle Sam too much.  Still overwhelmed with all of this, but moving forward a little bit each day.

My latest Thrift Store Adventure!