|
|
|
Member
 
Group: Forum Members
Last Login: 1/3/2012 10:46:42 AM
Posts: 42,
Visits: 787
|
|
I am helping with a report to the court of a conservator. Daughter is conservator for both her parents. There is one bank account, in the name of all three, the two parents and the daughter.
I'm wondering if we can make one report to the court for the combined (community) assets of both elderly parents, or if we have to split this into two.
And since it's community property, wouldn't the split be 50-50, even though H receives more Soc Security and retirement than W does.
TIA
Bill Downs, CPA
Sherman Oaks, CA
|
|
|
|
|
|
|
| as you know, i am not an attorney and this is probably a legal question. my "off the top of the head" practical answer is that it seems that you look to the conservatorship documents (court). i have never seen one conservatorship for two conservatees... so my guess is that it should be two accountings (assuming that there are two documents governing). that said, it does seem like a waste of time and cost. if it is all community, then i imagine that you could just take one accounting and have excel divide everything by two to get the separate accountings-
|
|
|
|
|
Member
Group: Forum Members
Last Login: 12/1/2009 12:47:02 PM
Posts: 44,
Visits: 58
|
|
jeez louise... my computer forgot to log me in- the comment above is mine -
we need new software !!
---
probably the best person to answer the question would be an attorney from the court, or a judge in department 11 - i will see if i can get an answer from a judge.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
|
|
|
|
Member
Group: Forum Members
Last Login: 1/3/2012 10:46:42 AM
Posts: 42,
Visits: 787
|
|
Hi, Mike,
I thought about it awhile, and decided to prepare two identical accountings, each one showing total numbers, and then subtracting 1/2 for the other spouse. The way we do 706 schedules.
My reasoning: it's all community property, and this way reflects each spouse's legal interest. Also, since the money ends up in one account, the parties are not treating anything as separate property, at all.
The attorney at first was concerned, but then went along with it.
Now we'll say how the court likes it. This is a second try. First try was done by a paralegal, and didn't measure up to the court's expectations.
|
|
|
|
|
Power Member
Group: Forum Members
Last Login: 1/6/2010 6:00:00 PM
Posts: 83,
Visits: 123
|
|
Bill, out of curiosity, what did the first try look like, and what did the court say about it? Do you have excerpts from the calendar notes?
John Jacobson
|
|
|
|
|
Member
Group: Forum Members
Last Login: 12/1/2009 12:47:02 PM
Posts: 44,
Visits: 58
|
|
this is from a former judge-
he wants me to emphasize that he is not currently on the bench and that you need legal advice.
his "off the top" thoughts:
1. you should have two separate accounts, not one combined one- each in the separate names of the conservatees
2. it is probable that these are two separate cases with two case numbers, etc (he didnt say probable, i added that)
3. you might get a judge who would allow the combined accounts, but he would not have
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
|
|
|
|
Member
Group: Forum Members
Last Login: 1/3/2012 10:46:42 AM
Posts: 42,
Visits: 787
|
|
John,
There were several problems with the first accountings. There were two separate accountings, but it seemed confusing as to which spouse's income and expenses were on each accounting. I solved that by showing all items on both accountings, and subtracting 1/2 of everything.
A big problem with the first accountings was the omission of assets from the summary of account. They had included only cash in the summary, and omitted the house and an annuity.
Regarding the annuity, they had no explanation as to whose, or what type. Turns out, it was an investment annuity, and all the money was drawn out in the reporting period. Thus, a need to show a balance at the beginning, and -0- at the end, and to account for changes in value.
Conservator and her husband were loaning money to the converatorships to pay bills, and details of these loans were not disclosed, such as interest and due date. Turns out, they aren't charging interest, and they'll get paid back from sale of the couple's residence. Those facts just had to be explained.
We may still have a problem with the bank account. That's ONE bank account in the names of the conservatees and the conservator. Apparently a joint tenancy account. As always, there's the right way in theory, and then there's what happens in real life.
|
|
|
|