Sometimes, illustrating the proper distribution of your client’s estate is a harder task then it needs to be. Luckily, it becomes much easier once you understand eMoney’s asset distribution logic.
Let’s take a look at the priority we use, a couple common mistakes, and the best report to get the complete picture so you can spend more time focusing on your clients.
General Distribution Logic
First, The general distribution logic. The following is the order we use for estate distribution:
- Any assets titled “Joint/ROS” will automatically go to the surviving owner
- Any assets that are owned by an individual will go to the beneficiary(s)
- Any assets that are not titled Joint/ROS and are without a beneficiary can be distributed by way of the Will, which the system will execute from top to bottom.
Now that we know the distribution logic, let’s take a look at some of the implications.
One of the most common mistakes users make occurs when they bequest an asset that is titled Joint/ROS. If you follow the logic above, the bequest will not occur, as the asset will be distributed via step 1.
A second common mistake is that he will is out of order. Take the following example from Jerry Stein’s will:
An advisor may expect 100 percent of Jerry’s “Cash at Vanguard” to be distributed to Henry. However, since we execute bequests from top to bottom, 100% of the remaining estate will be distributed to Ruth, including the Cash. Simply click and drag Bequest 1 above Bequest 2 and the problem is solved.
Finally, you can save a lot of time if you know exactly where to look to ensure proper distribution. For that, the best report with the most detail is the aptly named Detailed Estate Calculations. From here, view the Estate Valuation and Transfers subreport. This report outlines exactly who is getting what and by what means.
After a final review of the distribution of your client’s estate, you’re ready to go!