Concord, CA Estate Planning Law Firms & Lawyers

If the insured is still living, then the beneficiary's heirs likely have no rights under the policy. Among other things, the insured likely has the right to amend the beneficiary designation to name a new beneficiary. The policy itself may also state what happens if a beneficiary predeceases the insured. If the policy is silent, then when the insured passes away, the proceeds of the policy will become part of the insured's estate and will pass through the insured's will and probate.

Assuming the land you are referencing is still titled solely in your mother's name with no transfer on death designation, and also assuming her will is valid, then the answer to your question depends upon the terms of her will. When your mother dies, all assets that that are titled solely in her name at the time of her death and that are not passed to beneficiaries by virtue of beneficiary designations or transfer on death designations will be part of her probate estate. After all of her debts and expenses have been paid, and after the death probate process has been concluded, your mother's remaining probate assets will ultimately be distributed to the beneficiaries named in her will. If your mother's will indicates that her property will be distributed to her children, per stirpes, then your deceased sister's interest will pass to her child. However, if your mother's will indicates that her property will be distributed to her surviving children, then your deceased sister's interest will pass to you and your surviving sister. It is always a good idea to review your estate planning documents following the death of a spouse or child. Therefore, if your mother is still alive and competent, I would strongly encourage her to meet with an estate planning attorney now to review her will and other documents in order to ensure that her documents will ultimately accomplish her estate planning objectives. ___________________________________________

This Paragraph is taken directly from the Treasury Regulations regarding IRS Section 2041 ascertainable standards. "As used in this subparagraph, the words support? and maintenance are synonymous and *their meaning is not limited to the bare necessities of life *. A power to use property for the comfort, welfare, or happiness of the holder of the power is not limited by the requisite standard. Examples of powers which are limited by the requisite standard are powers exercisable for the holder's support, support in reasonable comfort, maintenance in health and reasonable comfort, support in his accustomed manner of living, Treasury Regulations, Subchapter B, Sec. 20.2041-1. This is pretty much self explanatory. Without actually seeing your trust I cannot tell for sure, however, if your Trust is drafted correctly you have the right to pay your bills if paying those bills is necessary to sustain your reasonable comfort and maintain your support. Therefore, I cannot agree with your CPA with the information I have been given.