Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, June 27, 1994 TAG: 9407220034
SECTION: BUSINESS PAGE: EXTRA6 EDITION: METRO
SOURCE: Mag Poff
DATELINE: LENGTH: Long
A: Virginia has a simplified and relatively inexpensive probate, which is merely a process to ensure that your wishes are carried out. There is no reason in Virginia to avoid probate. It is true that probated wills are a matter of public record, while a trust is private. Few people, however, bother reading routine wills.
Nor can a living trust replace a will; you need both if you set up a living trust. That's because you will always have some assets that are not in the trust, and money could come into your estate after your death. An example would be if your death were caused by the negligence of another driver and your estate recovers a large sum of money.
Trusts cost money, too. You have to pay the lawyer who prepares the trust, and you must pay the trustee who serves before your death (if any) or after your death.
Most people who create trusts have some wealth. There is no reason to have a trust if your estate is under the taxable amount of $600,000, and as a general rule you should have $100,000 to fund a trust.
Living trusts have great value for people in specific situations. Perhaps you want to care for an heir who is either disabled or a spendthrift.
A trust is most useful for providing against the possibility of your own incapacity. You can provide for management of your assets for your own benefit during your lifetime if you are unable to do so yourself.
You should see a lawyer who specializes in tax and estate work to determine if you are a candidate for a living trust or a will.
File complaints by letter
Q: We had a $30,000 certificate of deposit with Central Fidelity Bank. When we were notified that it would mature, we shopped around for a better rate. We did not get back to the bank to move the certificate until six days after the CD matured. The bank would not pay us interest for those six days even though it had use of the money during that time. I feel they owe us interest, at least at the passbook rate. Very little money is involved, but it is the principle of the thing. Where can we call to complain?
A: People who have a complaint about a state-chartered bank, such as Central Fidelity, can write to the State Corporation Commission and set forth full details. The commission will not accept a complaint by telephone. Address your letter to: State Corporation Commission, Financial Institutions Division, P.O. Box 1197, Richmond, VA 23209.
However, Kenneth Schrad, spokesman for the commission, said there is no law or rule that requires a bank to pay interest on a certificate of deposit after its expiration date. He said the situation would be controlled by the contract written on the certificate, which presumably promises to pay interest through a specific date. You still can write, he said, and the division might try to negotiate a solution if it feels an injustice has been done.
Nancy Eberhardt, spokeswoman for Central Fidelity Bank, said she knows of no bank in Virginia that pays interest on expired certificates.
She said the law requires only that the bank notify a depositor about a maturing certificate, which the bank can roll over automatically into a new certificate seven days after the first one expires. You arrived at the bank just in time to prevent this from happening.
The bank must notify the depositor 20 days before the rollover date, which would make the notice due 13 days before the expiration date. Eberhardt said Central Fidelity tries to provide notice 15 to 16 days in advance of expiration to give customers time to shop around and reach a decision. Customers earn interest during that final two-week period, but not after the certificate matures.
New will in order
Q: I made a will leaving my house and furniture to one of my three children, who needed the money. The others were doing well and said they did not want anything. Now another child is having problems, so I would like to split the house two ways and give the furniture equally to all three. But the first child said I cannot change the will because it already has been probated and it would cost $1,000 in any case. I never thought there would be such dissension in my family. What can I do about another will? I cannot afford a lawyer. My current will was prepared by a friend who is a notary public.
You can change a will any time during your life, revoking all former wills, as long as you are mentally capable of handling your affairs. You should make a new will providing for three-way division of the home furnishings as mementos and providing for sale of the house with the proceeds split as you see fit. Wills are not probated, or proved valid, until after death. Your child is mistaken.
Your friend who is a notary practiced law without a license and could get into serious trouble. He or she does not have the training required for drawing a valid will. You should be able to find a lawyer willing to prepare a simple will for about $150. If you cannot afford this, you should contact the Legal Aid Society of the Roanoke Valley. The agency provides legal assistance for people with low income. The phone number is 344-2088.
by CNB