Sports

The Orioles owner set up a trust prior to having a serious medical issue and now the situation is a messy lawsuit with the two sons fighting over control. And neither are youngsters, I think both are 50ish.

For those into reading this stuff the link below has the legal filing with one son accusing the other of trying to gain total control of real estate holdings, the law firm and the baseball from the other son despite being co-trustees. The mother is also getting up their in age but isn’t debilitated like the father has been (apparently since 2018).

https://www.courthousenews.com/wp-content/uploads/2022/06/an…

I think most would disagree with me, but I’ve often said I don’t think their should be inheritances or at least nothing sizable (pick a number, $500K? $1M tops) since this is way too common IMO.

Curious if any legal people here have seen it or have any comments on it? Are the complaints typical when this stuff happens?

Thanks
Rich

I think most would disagree with me, but I’ve often said I don’t think their should be inheritances or at least nothing sizable (pick a number, $500K? $1M tops) since this is way too common IMO. – Rich

I’m not a “legal people”, but I appreciate the instance you shared.

We’re not planning to leave anything significant to our two kids, but your post is a reminder we need to get on the stick and update our 35+ year old will to represent reality.

Fortunately, our kids are doing quite well and won’t need our assets. Maybe a small amount set aside for the grandkids… maybe.

Rob
Former RB and BL Home Fool, Supernova Portfolio Contributor & Maintenance Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

I think most would disagree with me, but I’ve often said I don’t think their should be inheritances or at least nothing sizable (pick a number, $500K? $1M tops) since this is way too common IMO.

Curious if any legal people here have seen it or have any comments on it? Are the complaints typical when this stuff happens?

I’m not a legal people either. However the issues involved when there is serious wealth (a major league sports team!) involved doesn’t relate well to my modest situation. I’m thinking that there were problems with how that trust was structured, but that is just a guess.

Are you imagining some sort of law capping inheritance at some level? So who gets assets beyond your pick a number? Uncle Sam? No thanks. If you want to limit how much your survivors get put it in your will, with some charity getting the excess.

I think I have enough to last out my life. I hope there will be something left to be split among my family. Right now I have a house, but the mortgage started two years ago with 20% down, so the effective value is that 20% plus any rise in the market. I have stuff, but only my Tesla would likely bring much. And I have a traditional IRA and a ROTH, where my funds are. The distribution of those is controlled not by my will, but by who I designate with the custodian and what percentage I specify for each person. At the moment it splits evenly between my two step-daughters. I’ve been seriously thinking of putting the grandkids, both actual and virtual, in for 1% each of the IRA. Even with the market (and my accounts) near a low that would be enough today to remember grampa by. If I live another 20 years, who knows what it might look like.

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I have stuff, but only my Tesla would likely bring much. And I have a traditional IRA and a ROTH, where my funds are.

LOL… pretty much sounds like us, along with the home equity you mention.

Rob
Former RB and BL Home Fool, Supernova Portfolio Contributor & Maintenance Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

Right now I have a house, but the mortgage started two years ago with 20% down, so the effective value is that 20% plus any rise in the market. I have stuff, but only my Tesla would likely bring much. And I have a traditional IRA and a ROTH, where my funds are. The distribution of those is controlled not by my will, but by who I designate with the custodian and what percentage I specify for each person. At the moment it splits evenly between my two step-daughters. I’ve been seriously thinking of putting the grandkids, both actual and virtual, in for 1% each of the IRA. - RHinCT

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A couple of points.

Concerning real estate - I set up my estate to that 100% of my real estate goes to one of my two children. This completely avoids any conflicts between two joint owners about when to sell it, which realtor to use, how much to list it for, whether an offer should be accepted ot countered, etc. BTW, same with vehicles.

Concerning IRA’s and Roths. I had mine set up for 50% to each kid as beneficiary. Until I learned that Vanguard required each beneficiary to set up an account before any distribution would be made to wither of them. If one kid happens to drag their feet or is unavailable for some reason, the other waits. Split accounts is one obvious solution with one kid being 100% beneficiary on one account and the other kid 100% on the other. Not at Vanguard because they only allow beneficiary designation at the account TYPE level. In other words have as many IRA’s as you want but they all will have the identical beneficial designation. Having all go to your estate and letting your will distribute would avoid this but it brings in all the PITA of probate.

Food for thought.

Until I learned that Vanguard required each beneficiary to set up an account before any distribution would be made to wither of them. If one kid happens to drag their feet or is unavailable for some reason, the other waits.

Interesting. I’m not with Vanguard. I’ll have to look into how my broker handles it.

>>Until I learned that Vanguard required each beneficiary to set up an account before any distribution would be made to wither of them. If one kid happens to drag their feet or is unavailable for some reason, the other waits.<<

Interesting. I’m not with Vanguard. I’ll have to look into how my broker handles it. - RHinCT


I researched this question and some of it is in the history of this board. Some comments I received did say that other brokers handles it differently where you can have, for example, two ROTH accounts, with each having different beneficiaries. Still not clear was whether one account with multiple beneficiaries required all to wait until all distributions could be completed at the same instant. That sort of makes sense to me since the account value is a moving target.

Anyway I am faced with moving to another brokerage if I want to handle my estate the way I want to. Grrrr.

Vanguard is a mess and I wouldn’t recommend them to anyone. At one time they certainly improved things for investors by driving down ETF/mutual fund fees but as someone who had to deal with them with my father’s inheritance, it was painful.

Like many companies they don’t seem to have any local offices which means everything has to be done via the phone or postal mail. With long wait times which gets more annoying as they transfer you to another office, the hold process starts over again (despite being assured you will be given priority and that they isn’t a current wait time, yeah there was.

I’m not sure but I kind of wonder if every brokerage will require the beneficiary to open a new account and receive the funds and only after that happens, you can receive a distribution (all or some). I think it may be due to accounting issues, potential tax issues.

Yeah it is frustrating since I had zero interest in keeping the money at Vanguard and once, after many, many phone calls, I finally got everything into my name and accounts, I contacted Fidelity and moved it all there.

Unfortunately many companies rely on dated things such as notarized or medallion signature guarantees which can be tough to find. Some places will give the later only after you’ve had a 6 month business relationship with them. Also the medallion guarantee requires you to provide additional info on the account to get the “stamp” and if you are inheriting the account it is often hard to get that info.

For example, TRowePrice statements clearly showed who the beneficiaries were on the account and of course the account balance, etc. My credit union needed all of that info to provide the medallion guarantee. Vanguard doesn’t provide that info on normal statements and trying to get it from them would be painful, thankfully I didn’t need it from them.

I think my biggest breakdown with Vanguard occurred because they insisted on me providing a verbal password that apparently I had set up years ago. Well, I’m sorry but if you haven’t had an active account (i.e., money was removed/transferred to another place) and have $0 with them, it seems like me they should treat you as an entirely new customer. In my case they wouldn’t and my only recourse was to fill out paperwork to remove the security password for phone calls and get it notarized which I did.

But they frustratingly they continued to ask me for the password despite me getting a confirmation that it was removed so I had to continue to argue with them that it was removed. Finally I had to do about 30 pages of forms the old fashioned way, mailed them in and finally got a guy who was helpful and removed the security stuff once he confirmed they had the paperwork.

So no matter how you do things, problems can occur and at times you seem to get stuck in a catch-22 situation where one place wants certain documents but the other place won’t provide them until you give them something else and then throw in long hold times and it can be a mess.

My attorney said this is why sometimes it is best to only deal with real people in local offices but that is rare to find nowadays w/o paying high fees.

Surprisingly the easiest company to deal with was the life insurance. Just had to fill out some forms, scan them, email a death certificate and got the money (not a large amount) within 10 days.

The biggest scam to me was the retirement apartment my parents purchased. They paid a large deposit and on their death the deposit is supposed to be given to the heirs after some repair costs were deducted but while I’m sure it was in the legal documents what happens is:

  1. They deduct 4 months of rent post death
  2. The repair costs were extreme in my opinion ($30K) for what I would consider basic painting/carpet replacement in a small apartment.
  3. They do not give back the money until the EXACT apartment is re-rented to another customer. So it could be a long time before we see a penny from it.

Obviously it is what it is and people need to understand this before signing documents but I honestly doubt my father had a clue as to these details based on limited conversations regarding the apartment.

It certainly makes me uninterested in ever moving into a place like that.

This certainly got off tracked.

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