What Title Do You Have On Your Loved Ones Account(s)? Are You The Beneficiary, The Executor or The Administrator?

Good evening Dolls,

Happy Monday to you all. I hope you had a great weekend.  Believe it or not, I stayed put!  Relaxed and swapped out summer clothes for winter clothes in the closet, as I prepared for one heck of a winter.  It was very relaxing but I know that I will be working for the remainder of the year, so it was good to get things in order now.

So last week I asked the group what topic you would like to cover.  One fellow Doll asked that I talk about the importance of an estate account and having your affairs in order.  This is something that is of great importance.  I’m sure the last thing anyone wants is to figure out what a loved one has financially during their time of grieving.  To have everything documented is important and necessary.  The name of this blog is appropriately titled: What Title Do You Have On Your Loved Ones Account(s). Are You The Beneficiary, The Executor or The Administrator.  Let’s break down each one.

The Beneficiary:

When someone is named as the Beneficiary, this is probably the easiest, least costly of the three.  A beneficiary can be named on bank accounts, annuities, retirement plan policies, pension plans and life insurance policies. As a beneficiary, you basically supply the business with the death certificate and your ID, fill out paperwork and you will receive the funds.  Simple and to the point.

The Executor/Executrix (Feminine):

An Executor is named in a person’s Will.  This individual will have control over the estate of the deceased.  Once all funds are released on behalf of the dearly departed, the Executor will take care of their unfinished business, such as credit card debts and other bills, close various bank accounts and insurance policies. You will also need to contact pension plans, the Social Security Administration, and any other governmental or private organizations that paid the deceased benefits, all while properly disbursing assets to the desired individuals. A Will should be a part of someone’s financial files. The more you accumulate in life, the more a Will becomes complicated and necessary. Even if you feel like you don’t have anything to give, still appoint SOMEONE.  In the Will, you can be extremely specific, like writing burial location along with other funeral instructions.  You will remember that Burt Reynolds left nothing to his Son in his Will.  While the Will may need to go through the Civil courts to appoint someone, depending on the state, the court might not need to get involved (this is not the norm). When the Executor has fulfilled the person’s final wishes and expenses, the Executor will close out the Estate account or better yet, liquidate it.

The Administrator:

An Administrator is always appointed by the courts because: the dearly departed didn’t have a Will, the Will was deemed invalid or the Will simply didn’t name an Executor.  If that’s the case, the courts must appoint an individual to run the Estate.  Same as the Executor, once all matters are taken care of, the Administrator may liquidate the funds.

With understanding how each of these work, it’s important that you review your own documents and have your loved ones do the same.  Have a central location for all important papers.  Unfortunately, we don’t know they day or the hour but we can make sure the family members that are left behind are able to piece everything together easily.  Please make sure all paperwork, numbers, beneficiaries, etc… is up to date and in order.  I can’t stress the importance of this enough.

If you want to read up on Wills and Estates, you can order the American Bar Association book Guide to Wills and Estates.  

If you have any questions, please feel free to post here or email me @: thefinancialcomforter@gmail.com

Thank you and have a beautiful and blessed week,

Marsha

Changing the lives in our community….one family at a time

 

 

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