As I mentioned, I've been reviewing our estate plans. I'm particularly concerned about the situation that will erupt if I die first. Mommy can't manage by herself even for 24 hours, and the most pressing need will be to make arrangements for her care. It seems to me unrealistic to expect that one can, at a moment's notice, conjure up a person who will move into this house and give Mommy the care she needs, - although I have one patient, a very congenial retired Cambridge librarian: Martha Hamilton:617-868-8897:65 Ellery Street:Cambridge MA 02138 who has offered to do just that. Jeane Walls has also offered to take care of Mommy, but I don't think that Jeane would be happy in Belmont - or Mommy in Konnarock for any length of time, - aside from the circumstance that Jeane can't leave Konnarock while Herman is alive. When contemplating disclaimers, one must consider that Mommy may survive me for many months or if not years and that much money may be required for her care. Inasmuch as disclaimers may be postponed for 9 months, I have suggested to Mommy that she wait at least 8 months before deciding how much money, if any, she should give away. By that time the propects of her future without me will be much clearer. In 2010, the IRS introduced a provision for "portability" of estate tax exemptions for spouses, i.e. the $5 million exemption need not be used by the first spouse to die, but can be "ported" to increase the exemption on the death of the surviving spouse from $5 to $10 million. Massachusetts claims to follow IRS procedures except for the amount of the exemption, 1 million, vs 5 million per decedent. I have not seen any references to exemption portability in Massachusetts, but this should be ascertainable. The only disadvantage of portability under the Federal regulations is that the Estate Tax return (Form 790) must be filed even when the gross estate of the first spouse to die is fully covered by the exemption. What sort of controversies, if any, our filing a Massachusetts Estate Tax return would precipitate, I can't predict. Except for the three automobiles, title transfer of which is a trivial formality, my estate is entirely non probate, in trust accounts of which Mommy and you are co-trustees, with two exceptions: a) my Schwab IRA account, ($143678.22) and b) a Cambridge Trust Account (46-505-420) ($1566.54) (required by CMS for Medicare payments. Both accounts are payable on death to Mommy. The usual disclaimers would require written notice to Schwab and Cambridge Trust, who might not know the beneficiary without a copy of the probated will. However 26 USC 2518(3)(c)(B) recognizes a written transfer of the "entire interest" in the property as a disclaimer. The complication then arises that the Schwab IRA distribution is taxable and reported to the IRS on Form 1099-R. If Mommy paid the tax, she would no longer be transfering the "entire interest". The proper procedure would be to request Schwab to send a corrected 1099-R form with Klemens' social security number, and to notify the IRS of this request. Whether the IRS would then require a copy of the probated will I don't know, but it seems unlikely. If probate cannot be avoided, the will should be probated in Abingdon. The problem arises is that Klemens might or might not be accepted as a resident of Virginia, (Konnarock) and might have to enlist Jeane as co-executor, - and then there would be reports at intervals of three months until the estate was closed. On Nov 19, 2010, Mommy and I both executed self-proving wills which can be probated in Cambridge. But the Massachusetts does not recognize the holographic Codicils which we wrote today; handwritten wills are acceptable only in Virginia. It might be simpler for Mommy not to disclaim the $143678.22 of the IRA or the $1566.44 in the checking account, - although the $1566.44 could be transferred electronically via Internet into our joint account, if it were done in time. Most of the liquid assets are in the Keogh Plan "Meyer Pension Plan, VIP Plus Money Purchase Plan dated November 6, 1991", including the following accounts: Charles Schwab, Acct 6262‐1019; Morgan Stanley, Acct 420 016392; Fidelity Investments, Acct Z49155870; Cambridge Savings Bank, Acct 535829320. Morgan Stanley as custodian should NOT be notified of and disclaimer. The other account custodians Cambridge Savings Bank, Schwab and Fidelity should NOT be notified of any Keogh plan disclaimers. Morgan Stanley should NOT be notified of the existence of the Schwab and Fidelty Accounts. There is an electronic link which permits disbursements from the Morgan Stanley Keogh account to the Cambridge Savings Bank Keogh Account, on which Klemens or Margaret may write checks. Direct electronic transfer of funds between Cambridge Savings Bank and Fidelity has been set up and presumably similar transfers can be arranged between Cambridge Savings Bank Keogh account and the Schwab Keogh account 6262-1019. Margaret and Klemens are co-trustees of the Keogh plan and Margaret needs only to notify herself (and Klemens) if she chooses to disclaim any portion of my assets, or to "rollover" into her IRA or to pay to herself, what she chooses not to disclaim. Here are the figures: 20130101:EJM:Life expectancy:16.3 20130101:MM:Life expectancy:12.0 20130101:EJM+MM:pp4:Morgan Stanley Keogh: 313952.80 20130101:EJM+MM:pp4:Schwab Keogh : 177629.91 20130101:EJM+MM:pp4:CSB Keogh : 145629.93 20130101:EJM+MM:pp4:Fid Z49155870 Keogh : 152612.23 20130101:EJM+MM:pp4:Total Keogh : 789824.27 20130101:EJM:ira:total : 134678.22 20130101:MM:ira:total : 30707.95 20130101:MM:tia:balance : 14490.11 20130101:EJMkeo:keo:balance : 541187.59 20130101:MMkeo:keo:balance : 248636.68 20130101:EJM:keo:MRD(minimum required : 33201.69 20130101:MM:keo:MRD distribution) : 20719.72 20130101:EJM+MM:keo:MRD : 53921.42 20130101:EJM:ira:MRD : 8262.47 20130101:MM:ira:MRD : 2559.00 20130101:MM:tia:MRD : 1207.51 20130101:EJM+MM:total:MRD : 65950.40 20130101:EJM:socsec net : 20304.00 20130101:MM:socsec net : 9648.00 20130101:EJM+MM:total tax income: : 98546.00 20130101:HH Bond Interest : 6375.60 20130101:Total Tax income : 104921.60 The Keogh Plan does NOT terminate at my death; it terminates on the death of the last beneficiary when all the assets are exhausted. $248636.68 are the Keogh assets belonging to Margaret. $541187.59 are the Keogh assets belonging to me which I leave to Margaret. She has choices: 1) She can leave the $541187.59 in the Keogh Accounts, giving her a total of $789824.27, of which she would have to withdraw a fraction inversely propertional to her life expectancy which decreases every year This year's Minimum Required Distribution would be 789824/12=65819. 2) She can "rollover" the 541187.59 into her IRA, or she can "rollover" the total 789824.27 into her IRA. 3) She can disclaim any or all of the 541187.59, in which case she would write a check in that amount to Klemens and report the distribution on Form 1099-R and Form 1096. Klemens would then have to pay income taxes which might or might not receive special treatment as lump sum distribution. (I haven't looked this up.) If Klemens in turn disclaimed this sum it would be divided equally among the four children, each of whon would be liable for his/her share of the taxes. Because the income taxes are so substantial careful planning will help. Indeed, especially if Margaret utilized the exemption portability, it might save taxes for her to take the MRD annually, pay the income taxes and distribute some or all of the remainder, using the $14000/year per person exclusion (14000x6 = $84000). Note that Margaret and Klemens are co-trustees of the Keogh Plan, of the Margaret Meyer Trust at Schwab, of Meyer Family Trust #5 at Schwab. Margaret is the sole trustee of the 174 School Street Trust and will be the sole Trustee of the Ernst J. Meyer Non-Probate Trust. She will have all the legal responsibility, - but she will need help with the decisions and with the tax returns. In addition to her own state and federal tax returns, she may have to file tax returns on behalf of a decedent (for the minimum required Keogh and IRA distributions), - I don't think the Ernst J. Meyer Non-Probate Trust will have income. It will probably not need to file an income tax return. I don't think the Estate of Ernst J. Meyer will have income or will need to file an income tax return. Margaret will need much clerical help if only in paying the numerous bills. Note that at present I have been using "Bill Pay" facilities at Bank of America for bills for which Moargaret and I are liable and Bill Pay at Fidelity for bills for which, under terms of the Trusts, Klemens is liable. Note that electronic transfers between the non-tax sheltered Schwab accounts and both Bank of America and Cambridge Trist Co have been established. You should let me give you the passwords and make sure you can accomplish such transfers - before the need acutely arises.