Assignment task:
Review the facts presented below, and suggest the organizational and administrative tasks the paralegal needs to complete to be turned over to the attorney or accountant for preparation of the estate tax return.
Arnold and Molly Bode are very wealthy. Arnold died in April of 2013. Mr. and Mrs. Bode have two adult children, one grandchild, and one grandchild on the way. When Mr. Bode dies, Mrs. Bode comes to the office for assistance with probate, administration of the estate, and preparation of the estate tax return. She brings with her some financial statements, their tax returns, the original will, and a file box full of other documents with the explanation, "I don't know what all of this is, I just took it all out of Arnold's desk". Arnold's will is a complex will that takes maximum advantage of the federal tax credits available to him and his wife. In the will, Arnold makes a specific bequest of $100,000 each to Boston University, his alma mater, and the American Red Cross, and a $250,000 specific bequest to his grandchild. The remainder of his estate goes directly to his wife, if she survives him, and if not, to his two children in equal shares.
In the file box, the paralegal finds documents pertaining to the following assets:
- Deeds to two properties - one deed is for the couple's home; it is in the names of Arnold and Molly Bode, joint tenants with right of survivorship. The other deed is for Arnold's grandparents' home that is located in Mantoloking, New Jersey. The property was used as a vacation home and was significantly damaged during Hurricane Sandy. The deed is in the name of Arnold, and Arnold's late brother, Avery, as joint tenants.
- Mortgage note - Arnold loaned a friend's daughter $500,000 to start a business. The mortgage is secured by a commercial property and has been recorded as a lien against the property. The friend's daughter has been making regular payments, with interest, on the mortgage.
- ILIT - Mr. and Mrs. Bode created an ILIT approximately eight years ago. The ILIT is the owner of a second-to-die policy with a death benefit of $3,000,000.
- Rare coin collection - Arnold had the collection appraised recently, for insurance purposes, and included the value of the collection as a rider to his homeowner's insurance.
- Google, Facebook and Starbucks stock held in an E-Trade account.
- Annuities - several different annuities purchased from different investment companies.
- IRA/401(k) - held by Morgan Stanley.
- Stock accounts - one at Merrill Lynch and one at Edward Jones.
- Money market account, checking account, savings account - all at a local bank.
- Two life insurance policies - one from his former employer, and one from Prudential.
After reviewing the documents in the file box, it appears that there are a number of things that Arnold could possibly own for which documentation was not included. Draft a memo to the attorney with suggestions as to additional documents the client will need to bring in.