Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, November 7, 1994 TAG: 9412070007
SECTION: BUSINESS PAGE: EX6 EDITION: METRO
SOURCE: MAG POFF
DATELINE: LENGTH: Medium
Early this year, Charter Federal Savings Bank announced a one-for-five reverse split of its stock. On Jan. 4, we sent 1,030 shares, plus a form that had been sent to us, by registered mail in one envelope. It went to Chemical Bank in New York.
On Feb. 9, we received 80 shares and 46 shares, totaling 126 shares. This left us 80 shares short.
Numerous phone calls have given us no idea where to get these shares.
A: Douglas Deppen, chief financial officer of Charter Federal Savings Bank, was able to get the missing 80 shares, which you said you already have received.
Deppen said the mistake was caused by "human error" at Chemical Bank, which is a large organization in a large city. Solving the problem, he said, was "a matter of getting the right person's attention."
If a problem involves a local business, it is better to try to deal by phone or in person with local people than to call toll-free numbers in a distant city.
Power of attorney recommended
Q: My parents, who are in their early 90s, have asked me to be a co-signee on some checking accounts and certificates of deposit. They are concerned that, if they become ill, someone may need to access these funds quickly. Their estate is worth less than $600,000, and I am the executor of their will. They live in Illinois.
I am concerned about the tax and inheritance implications of this request. For example, if I were to draw money from any of these accounts for their benefit, would that apply under the gift tax provisions? When they both die, will the money in these accounts pass into their estates to be divided among the heirs, or will it pass to me? Are there other implications I need to be concerned about?
A: R. Neal Keesee Jr., a tax and estate specialist with the Roanoke law firm of Woods, Rogers and Hazlegrove, said the gift tax would not apply to the situation you describe. You would be using your parents' money for their own benefit, so there would be no gift and thus no tax.
As to your question about the bank accounts, Keesee said the outcome after their deaths would depend on the way the account is established with the bank.
If it is a joint account with right of survivorship, the money would pass directly to you rather than going into the estate regardless of what their wills say. If there is no right of survivorship, then the money would go into the estate to be divided among the heirs.
Assuming you would prefer that the money go into the estate, Keesee said you should be careful about the manner in which the joint account is established. At many banks, the survivorship account agreement is usually presented for signing.
But Keesee suggested an easier and cleaner approach to your dilemma.
He said you should have your parents sign a simple power of attorney giving you authority to handle their affairs. You could present such a document to their bank instead of changing the names on all the accounts and certificates. As their executor, you would therefore have the entire package, and you could make medical decisions on their behalf as well if that should become necessary. Keesee said this approach would save you time and money.
Have Va. attorney review wills
Q: My wife and I have wills that were drawn up and witnessed when we lived in Colorado. We have since moved to Virginia.
Do we need new wills, or to have them re-witnessed or otherwise changed? They are fairly detailed wills, including not only disbursement of our assets but arrangements for our children as well. Other than our change of residence, they are complete and up to date.
A: Carr L. Kinder Jr. of the Roanoke law firm of Bird, Kinder and Huffman suggested that you have the wills reviewed by a Virginia attorney to ensure they meet the technical requirements of a Virginia will.
He pointed out that every state has slightly different requirements, so it is impossible to be sure without a review. One state, Louisiana, has requirements that diverge from all the other states.
Other than that, your wills should be valid. You should be able to probate Colorado wills in Virginia without difficulty. If it is necessary to prove your wills through the witnesses, Kinder said, the process can be accomplished through depositions.
by CNB