Life Insurance
As a spin off to Esmod's estate planning post, as We get older we realize we are not immortal. We recently had a neighbor down the street, a very nice and helpful man, diagnosed with esophageal cancer, which is usually a death sentence. One of my county co workers died of it a few years back with virtually no symptoms.
And also Chef had a recent brush that could have been bad. A garbage truck completely smashed his parked van but he was not in it.
So we finally got around to getting a term life policy on Chef.
Since I had stage one breast cancer last year the only policy I can get for me is basically burial expenses. Which is actually fine with me.
As many other step mom's, I have a fear of the PASed out ferals circling like vultures coming around out of nowhere if they get wind of any money to be had..
I think that is one of our biggest fears as step moms: that the ungrateful brats will get a penny of our money.
I also have a will saying that Chef can stay in the house as long as the mortgage/taxes are paid (I haven't decided yet to pay it off or not-- It's a great fixed rate of three percent) And that the house reverts back to my bios should something happen to Chef--basically life use. All the rental propeties and the biz are in my name which is as it should be--I have been paying Chef's living expenses and the entire household expenses.since the day he moved in with me.
Any wages he had would go ninety percent or more to CS.
Currently, I do pay him a token subcontract wage which is equivalent to his CS. Not sure what to do after CS stops in January since he basically is a subcontractor for me.. Don't really want to make him a permanent employee..
Any more advice? I plan to update my will saying I want the rentals to be sold upon my death and procceds going to my bios. Chef's sweat equity=his living expenses from 2004 to present. He can opt to keep the biz and put it into his name.
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We have had the discussion
We have had the discussion with our kids about specific "token" items. Special jewelry, photos, guns, etc. We had those line items in our wills. Our wills are like 99% just basic reciprocating wills- each other getting everything if one of us dies first and SS23, BS17, DD15 getting equal shares if we go together. We have fully disinherited SS18 (DH's choice).
Different things
I would detail what should be done with personal items.
And writing a letter
Chef's kids need to be named
Chef's kids need to be named in the will as either getting nothing or getting something nominal like $5. LOL That way they can't fight the will saying you caused them to be overlooked.
Who is your executor? I would urge you to NOT make Chef the executor and to also make your kids direct beneficiaries to some of your funds/assets.
I learned a lot after my best friend died. She had made her girlfriend her executor but didn't get around to making her the beneficiary on her retirement account and other investments/house. My best friend's brothers were named as beneficiaries and as soon as they had a death certificate, they emptied the accounts where they were named beneficiaries. Those accounts aren't distributed according to the will - the money goes straight to the beneficiary.
So they waltzed off with hundreds of thousands of dollars within 6 months of my friend dying while her girlfriend was left to settle her estate. There was a lot of debt and the sale of the house did not cover the debt, lawyer's fees, exector fees, etc. = insolvent. The family even agreed to pay the funeral expenses because they wanted more of a spectacle than the girlfriend (or my best friend) wanted. But they reneged on that agreement and sued the estate for the costs - just to be assholes.
Because of this, my daughter is named as my executor AND I have made her the beneficiary of an investment account so she has money as soon as she can submit my death certificate, and won't have to wait for the estate to settle to handle my cremation and "ding dong the witch is dead" party. LOL
Also, if you want Chef to stay in the house, you should plan to leave some money for your kids to maintain the house. Otherwise, they may be left with a run down house that Chef was allowed to live in; unless you're sure he'll do his best to keep the house in good order for your kids.
Great Advice
Also, your wills can be very specific. These based on if DH passes first. A few things we have....all titled vehicles/trailers are mine. Any improvements done to our shared home (it's my house) are gifted to me so his kids can't "claim" I owe them their share of that; a rental property we own is left to me, with the knowledge I will update my will to pass the house to the SKs at my death (this is income for us and Usafrux in Louisiana is weird and would leave me vulnerable to a lot of BS from his kids so we opted this route with our attorney).
The bottom line...the more specific you can be in StepHell, the better off you will be. Leave no stone unturned.
Chef's continued residency in the home can be contingent on a
a quarterly condition inspection. One fail, he is out, the home sells, and... he can go live with his spawn.
Got That Covered, Too
If I die first, DH has usafrux with our home. He can live out his life here with my kids (one very near by) who will help him when he needs and keep an eye on him. Under no circumstances are DHs kids ever allowed to move into this home with him. If he wants that, then he can go back to his home (the rental property) and let my kids take over their inheritance. And it's documented.
DHs kids have caused me nothing but trouble. While I would NEVER hold out on what DH wants them to have, even if he goes before me, they will NOT ever have access to MY stuff after death. My kids will ensure that.
Again, make that will so dang specific there is no room for misunderstanding or challenges.
You must get a lawer
Involved in your will. After your death chef can do what he wants or what SK want. Unless it's all spelled out in your will. Makeing sure one of your bio wis the executors of your will. BETTER be safe then sorry. Do it league. Make sure there's no loop holes.