Archive for May 2011
Digital Assets. I remember when my parents got their first and only desk-top computer. It was in the late 1990’s and it was a hand-me-down from friends who were early technology adapters. At first, they were very interested in learning how to use it. For a while I believe they were spending more money on computer tutors than food.
When my father died, he had notebooks filled with instructions about how to log on. He wanted to use the computer for word processing and my mother wanted to learn how to use email. However, they both suffered from fear of deletion. That is, they were both terrified that they would delete what they had written, never be able to recover the text or the thought and some how break the computer in the process. Consequently, my father continued to do his creative writing in long hand and my mother used the telephone to communicate.
My mother ultimately overcame her diagraphephobia (can you believe there is a word for fear of deletion?) and became quite adept at playing bridge online, but she never did use email.
It is much more common now for people in my parents’ generation to use computers so that they can communicate with their children and grandchildren. These Digital Immigrants are amassing digital assets. Increasingly, digital assets are a consideration in estate planning. There are companies that have developed products that help to protect digital assets and assure that data is accessible to executors or named individuals after the owner passes away. Entrustet, Legacy Locker and DataInherit are three such companies.
Tips: Check the websites above to see what qualifies as a digital asset. Entrustet has a digital property search function for deceased people. So, even if it was not a consideration during estate planning, the executor can obtain the information. It is always best to obtain a list of accounts and passwords while your parents are still alive.
Information found on this web site is for general informational purposes only based on personal experience and should not be construed as legal, tax or other professional advice. You should consult an experienced attorney , tax professional or financial advisor concerning your particular factual situation and any specific questions you may have.
Eternity Leave. I recently heard the term eternity leave and like it a lot. Word Spy defines it as job protection and paid leave for people caring for dying loved ones. I would suggest that the definition be expanded to include “deceased loved ones” as well.
Being an executor is extremely time-consuming and for people with full-time jobs can be overwhelming. Increasingly, people are negotiating time-off to fulfill their responsibilities as executor.
There are many things that require time and attention during the normal 9:00-5:00 work day which could distract an executor from their day-job. Disposing of assets and property can often require additional work on-site. Many businesses that an executor needs to contact are only open during work hours.
Some executors are opting to focus a specific amount of time on their executor-duties and request time-off to do so. It can be as simple as a part-time arrangement that allows for a couple of hours a week, or it can be a complete hiatus from work for some period of time. One friend of mine quit her job completely to deal with the complexities of her father’s estate.
Tips: See if your job has eternity leave benefits. Negotiate with your employer for an arrangement that would allow you to complete your executor duties. Consider paying yourself from the estate to compensate for lost wages.
Information found on this web site is for general informational purposes only based on personal experience and should not be construed as legal, tax or other professional advice. You should consult an experienced attorney , tax professional or financial advisor concerning your particular factual situation and any specific questions you may have.
Co-executors. My parents always strove to treat my sister and me equally and fairly. In death, they wanted to continue the tradition and named both my sister and me to be co-executors of their will. I know that their intent was to have a fair and equal distribution of their assets and not to appear to favor one over the other with the assignation of executor.
My sister lives on the West Coast and I live on the East Coast. To jointly execute the will would have meant countless hours coordinating the signing and notarizing of documents and co-signing checks. It would have been a logistical nightmare.
Luckily, my sister and I have a wonderful and trusting relationship. Soon after my mother died, my sister agreed to formally renounce her role as executor, leaving me as the sole executor. She had no interest in the administrative minutia that is a large part of being an executor. I found being an executor to be extremely time-consuming and was grateful that I did not have the added burden of coordinating every move with my sister.
Tips: Parents should consider the skill sets and availability of their children when choosing an executor. If there is doubt that the siblings will treat each other fairly, consider a neutral party outside the family, like a lawyer. If the choice is to have multiple executors, understand that this will result in incremental time coordinating with each other. Finally, if you are one of multiple executors you can formally renounce your responsibilities.
Information found on this web site is for general informational purposes only based on personal experience and should not be construed as legal, tax or other professional advice. You should consult an experienced attorney , tax professional or financial advisor concerning your particular factual situation and any specific questions you may have.
Julie Rothhouse
The Executor Advisor 