Serious Question regarding death benefits

[casheasy]

I hope you guys can help. Here's the deal.....

My mother and father worked for the Goodyear Tire & Rubber Company here in Akron, Ohio. My dad passed away 16 years ago, and my mom died 4 weeks ago.

Everybody and their brother is telling me that my brothers and I are entitled to my mom's pension (she worked there for 25 years), as well as my dad's since she hadn't touched it yet, and she was not married.

Of course, I can't get an answer on any issues from anybody at Goodyear, so I am trying to find out if this is the case. Also, she had $20,000 in a company savings account, but I amstill trying to get somebody there to give me some straight answers.

Anyway, I am basically asking if anybody knows any of this stuff for certain. Do I now get my mom's pension? My dad's?

Thanks guys. You always have been helpful in the past so any info is appreciated.

[BettorsChat]

Pension meaning a monthly check?

The 200k that you mother had there is that from a 401k plan?

And what is your age and your brothers?

[BettorsChat]

Also do you know if either your mom or father had set up a will?

Or a TOD which is a transfer on death policy?

When you father passed away I assume your mother didn't get anything from his plan since they weren't married?

[casheasy]

Sorry, I didn't explain enough there. Here's what I know....

My mom and dad were married when he died, she just wasn't allowed to touch his pension (401K) until next year. And maybe that 20K is indeed her 401K, tough to tell from the documents I have found.

My brothers and I are all over 21 (37,35,33)

[casheasy]

Yeah, my mom's will simply states that my brothers and myself get her estate, which nobody seems to be able to explain to me what that means. Is that just her house, or the 401K as well? Also, she racked up 65 K in debt that will wipe away the proceeds from selling the house.

My lawyer says that we will get the 401K money, but I can't get Goodyear to confirm it. I am such a newbie to things like this LOL.

[BettorsChat]

Oops, I thought you said 200k

So your mom got your fathers 401k plan as I assume that he left it to her.

If your mother had a will it would depend on what it said. I'm sure that it left the house and any money that she had. And if you have an Attorney he can help get this resolved. No company is going to help you as they don't care. Plus they would probably like to keep the money.

[BettorsChat]

Also its always a great idea to have a will, because if you don't when someone dies it has to go through probate Court and the Government ends up getting half of everything.

[BettorsChat]

Also on the 65k in debts what is that for?

You would have to ask your Attorney but I'm not so sure that you would be responsible for the those debts. If its a home mortgage then the house is worth more than what's owed so it must be something else.

[casheasy]

Yeah her will said any money and the house goes to me and my brothers.

The debt is credit card debt and a home equity loan she took out.

Thanks for your response Monte!

[BettorsChat]

Cash is most of the debt in the Credit Card? It seems the house would be worth more than its mortgaged for.

If so does the credit card company know that she passed away? If they don't and everything gets settled prior to them finding out I don't think there's anything they can do, but write it off. You would need to ask your Attorney though.

[tdickson]

casheasy

Bettorschat gave some good info but you might want to try this.
When your parents enrolled in Goodyears retirement or savings plan, they would have filled out a beneficuary document that the plan administrator would have on file. Your fathers account probably had your mother as primary beneficuary and you and your brothers as contingent beneficuaries. Which intitles you guys to the money. Call the human resources dept. first, if no help there tell them you are going to contact the Department of Labor, because your parents have ERISA laws protecting there money. This should light a fire with them and hopefully you can get the ball rolling. If this doesn't work let me know. There are alot of ways to get this.

[casheasy]

Thanks tdickson, I'll give it another shot. That's exactly the scenario (as I envision it) that took place.

Thanks a lot guys.

[LLWM]

Originally posted by BettorsChat
Also on the 65k in debts what is that for?

You would have to ask your Attorney but I'm not so sure that you would be responsible for the those debts. If its a home mortgage then the house is worth more than what's owed so it must be something else.

The ESTATE is the legal party liable for any indebtedness.

The estate value is computed as the Assets less the liabilities.

So the House has some FMV (fair market value) and will probably have to be sold to satisfy the other claims on the estate.

The funds left over are what will be distributed to the children. If the will is mute then all the listed children will share equally in the net proceeds.

The 401K plans are ALSO assets of the estate. But here is where it can get trickier because as Tdickson explain you have to hope that your parents filled out the proper beneficiary forms. You will ULTIMATELY get to the money BUT Goodyear will make you jump through hoops (and legally the really must) before those funds will be released.

Did you Mom name an executor? Typically one of the kids, an attorney, or at times a banker ? If so they will charge the estate fees for their time (family members don't as a rule).

Good luck.

LLWM

[casheasy]

Thanks for the info

Yeah, she named me as executor. And my lawyer confirmed your comment regarding the debts subtracted from the assets. And Goodyear is really making me jump through hoops, as you suggest. It's 4 weeks tomorrow, and they are giving out info like it's the President's schedule or something LOL.

[LLWM]

CASH

Glad I was not misinterpreting anything - This is not an ideal format to try and discuss issues of this nature.

While I technically I am a CPA I am NOT a tax accountant nor attorney and on these type issues you (unfortunately) often need one or the other to make sure everything is done properly.

You do have some legal exposure as the named executor of the estate (hopefully your's is not a disfunctional family) so please do make sure you "dot your I's and cross your T's" - money does funny things to peoples attitudes.

LLWM