The White Falcon - 30.08.1985, Side 10

Death of a military spouse
(Editor's note: This is the third in a four-part
series provided by the Office of the Staff Judge
Advocate, 22nd Air Force, Travis AFB Accounting
and Finance Center in Denver, Colo.)
Probate generally includes all matters per-
taining to the administration of an estate.
There are particular actions you can take before
death which will lessen the complexity of a pro-
bate.
Bank accounts and car titles may be easier to
deal with if they are listed in both your spouses
name or your name. Land deeds should be in joint
tenancy with the right of survivorship. If your
bank accounts, car titles and land deeds are done
that way, you have probably reduced your probate
intricacies.
If your car is titled in the name "Mr. or Mrs.
X," you merely go to the department of motor ve-
hicles, sign the title over to yourself, and a
new title will be issued in your name only.
If the bank accounts are in the name of "Mr.
or Mrs. X," you merely close the account (if you
wish) and open a new account in your name only.
If the house is in joint tenancy with the right
of survivorship, it will generally only take
some kind of affidavit to clear the title and
make you the sole owner of the property.
If the bank accounts, vehicle titles, and
land deeds are not in the appropriate form, all
will have to be probated unless the size of the
estate and kind of property involved make you
eligible for expedited procedures which reduce
court involvement. Probates can be long, com-
plicated, expensive and largely unnecessary if
you plan now for the future. Your legal assis-
tance officer can point you in the right direc-
tion.
Some drawbacks
While owning property in joint tenancy has
many positive features, it also has some draw-
backs. Among these are loss of absolute con-
trol and potential adverse tax consequences
both immediately and at death. Don't get on the
joint tenant "band wagon" unless you understand
its plusses and minuses.
Two things are said to be certain: death and
taxes. Most states tax the privilege of passing
property from the dead to the living, usually by
an inheritance tax. The tax is paid by the per-
son receiving the property.
Whether there will be such a tax in your case
depends on your spouse's state of residence at
the time of death. The federal government also
taxes the value of the estate.
However, there is no tax on property left to
a surviving spouse. By 1987, the estate tax
will apply only to estates in excess of $600,000
where left to others than the surviving spouse.
Your base lawyer can give you guidance on the
necessity of probating the estate, but you may
10
be directed to a private attorney. While Air
Force lawyers are fully licensed, they are not
usually licensed to practice law in the state in
which they are stationed.
However, the base legal office will be able to
recognize your need for a private attorney, assist
you in obtaining the services of one and prepare
you for your appointments with the lawyer which
can help decrease the cost of services.
Goals and needs
Once you have arranged your short-term housing
needs, organized and gathered your money, and
cleared the estate, or formally probated it if
necessary, it is time to make some decisions about
goals and needs. The first decision will proba-
bly deal with long-term housing.
If you and your spouse were buying a home off
base, you will have to decide whether you want to
continue to live in that house.
There are two kinds of mortgage insurance.
One protects the mortgage company from your de-
fault on the loan. Under the terms of most loans
you are obligated to pay the premium.
The second kind of mortgage insurance is the
kind which will pay off the balance of the mort-
gage in the event of your spouse's death. This
type of life insurance should also be looked for
in any loan situation so that all loans can be paid
off quickly -- for example, a signature loan at
the credit union.
If you had the second kind and the proceeds have
paid off the mortgage, you are the sole owner of
the house. If you sell your home, there are in-
come tax and tax deferral features which you must
handle.
If you decide to move, the government will move
you at Uncle Sam's expense to either your husbands
home of record or your home of record. You must
use this benefit within one year of your spouse's
death. The government will also move your house-
hold goods within weight limits to your next home
at no expense.
VA loan eligibility
Let's say you've decided to move, buy a house
and start a career. Uncle Sam will also store your
household goods temporarily for 90 days while
you're waiting to move into the house.
If you need a mortgage for the house, you are
eligible for a VA loan. Find out if that is the
type of loan that best suits your needs. There
are many different types of loans -- conventional,
owner-carried, FHA, VA, graduated-payment and
fixed-rate.
Generally a VA loan has lower interest rates
and cheaper closing costs for you as the buyer.
Continued next week
1
August 30, 1985 The White Falcon