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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 06-03-2017, 10:54 AM
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Default Wills and income

We learned this week that my partners ex is managing the estate of a recently deceased parent and has access to a great deal of money. This would explain how the legal battle can be afforded and is a little unsettling that there is a "war chest" so to speak.

The question we have is, is this something my partner can request info on? Ex is claiming she has no money for her portion of expenses and poor hard done by kid is using student loans for school and cant work to pay her portion due to health. If both of them inherited money (and my partner knows what the portfolio was worth several years ago meaning there is $$$$ money) and are able to use this for the expenses they want more money for, is this something that should be provided as part of the financial disclosure? Ex has claimed she cant afford her lifestyle and wants full table while kid is away at school as well as six-seven years of school not three to four.

Years ago during my parents divorce my father had to disclose his fathers will to prove there was no money. Granted my grandfather was the kind of person who hid cash in the freezer and had sold all his properties before going into a home.

If yes, should this request go on the form 20?
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Old 06-03-2017, 11:54 AM
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An executor is entitled to a fee (% of estate - I don't recall off-hand what it is).
There is plenty of information on the internet - including a calculator.

If the estate is large then yes I believe the fees would be taxable and should be included as income.

What I would do is when you fill out the information I'd put a large ?? on a section estate/executor fees. This will certainly jump out at a judge, particularly if the other party has not volunteered the information.... implies that she is hiding something.

Oh and yes, I would request the information (including name of estate lawyer and a copy of will). You'd just name the deceased, date of death, residence). You may get some flack namely they might say income doesn't have to be declared until next years' tax filing but I think the raising of the matter will be of concern to the other party). If someone is claiming hardship then all financial information is fair game IMO.

Last edited by arabian; 06-03-2017 at 12:05 PM.
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Old 06-03-2017, 12:20 PM
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That adds more to this...if it is to be claimed next year then that may be why the filing is happening now. AND the ex has stated she will be selling the house next year at a potential sale price of $1 million (could be higher if the real estate bubble continues). Which means she would want to play the poor me card, convince a judge she is entitled to cs outside the fcsg amounts, more money for school than obligated and then she can declare her inheritance income and walk away with her million dollar house sale.
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Old 06-03-2017, 10:31 PM
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It's not that simple really. Being the executor doesn't mean she has access to any money now. She is only able to legally use funds to settle the estate. Executor fees aren't generally claimed by an executor who is also inheriting. Why take money away from yourself basically, but yes it is tax deductable.

The estate isn't settled until everything is dealt with, including the sale of the house. It usually takes up to 2 years to complete. So she won't really see any money until then anyway.
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Old 06-03-2017, 10:58 PM
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Shes already inherited a number of things like a car, antiques and funds. The estate is almost settled which is probably why she has filed now rather than six months from now.
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Old 06-04-2017, 10:26 AM
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I should clarify that the concerns regarding this money all relate to her claims in her filing. First she is claiming hardship, she has no money, shes spending more than bringing in and my partner should be paying more. Second shes claiming kids are seriously ill and cant pay more than a small amount for post secondary. Third she wants everything set at a certain proportionate share and enforced by FRO which means if she does report this income next year and it bumps her up (that would mean a 80-20 split for her rather than the current 60-40) then my partner would have to go to court again to fix that.

I think if there is money being handed over that impacts her claims she has more debts/bills than she can afford then it should be reported.
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Old 06-04-2017, 10:37 AM
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Follow the money. I would want copies of her joint-bank account statements for past 3 years. It's always interesting how money gets moved around (through power-of-attorney joint accounts etc.) prior to someone passing away. Often this is done to reduce the size of the estate... we know that estate lawyer's bill is typically a % of estate.
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Old 06-04-2017, 01:11 PM
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Yes and for months after the death my partner was convinced it was another sibling who would be the executor but knowing that the exec makes a percentage of the estate makes sense why she is named it. Plus the intel the person who told us this gave us explains a great deal about these claims that have been made and blow holes in her im broke and the kids are struggling rhetoric.
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Old 06-04-2017, 06:37 PM
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Quote:
Originally Posted by rockscan View Post
I think if there is money being handed over that impacts her claims she has more debts/bills than she can afford then it should be reported.
Forget the will and inheritance and focus on this little piece.

If one parent is living beyond their means to the point she can't afford her proportionate share of child expenses, the solution is not to extract more money from the other parent. The solution is to budget better.
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Old 06-04-2017, 07:00 PM
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Yes, my partners lawyer has said that he is not responsible for her inability to live within her means. The problem is if the judge will believe her poor me sob story. She had to pay him to keep the house, shes had to pay for all s7, shes had to pay to help kids achieve their dreams. Maybe if she had included dad and discussed, it wouldmt have been her problem to bear alone.
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