In this case study, we provided assistance with US inheritance paperwork to the niece of a beneficiary, who had to navigate a dizzying array of unfamiliar financial terms, how to handle an individual retirement account (IRA) inheritance, and forms for inheriting a US annuity that was issued by a US Mutual.
Background Information
Personal/Financial Situation: The client was a UK-based relative of a UK-based beneficiary who was in charge of handling paperwork to access inheritance from deceased family member in the US. A lawyer had provided forms from the estate that were labour-intensive, using US financial terminology and procedures that were unfamiliar to the client, particularly concerning an IRA (Individual Retirement Account) based in the US, and an annuity from a US Mutual. The documents came with strict requests that the client was not aware of. Without thorough guidance, these documents could not be appropriately processed to result in a viable inheritance. The client came to Edale given our experience with US/UK citizens and financial situations.
Challenges:
The primary challenges included:
- Understanding and accurately completing the forms that contained unfamiliar US financial terminology.
- Navigating the requirements for an IRA inheritance and a US annuity.
- The need to have a Medallion Guarantee Stamp (used in certain US financial transactions) that is not normally available in the UK and which is expensive to obtain.
- Checking that documents were properly certified and registered and acceptable to US financial institutions.
Goals and Objectives
Goals:
- Provide clear guidance on how to complete the US inheritance paperwork.
- Explain the unfamiliar financial terms and processes to the client.
- Identify and propose alternatives to the Medallion Guarantee Stamp to avoid unnecessary expenses.
- Help the client obtain the licences and endorsements required to complete the inheritance.
Strategy and Plan
The plan to assist the client involved several key steps:
- Instruction on the Form Process: We instructed the client on how to fill out each step of the forms, which also involved explaining specific terms and processes that the client was unfamiliar with:
- It is complicated and expensive to obtain a Medallion Guarantee Stamp in the UK We informed the client that it would be very difficult and/or expensive to obtain a Medallion Guarantee Stamp in the UK and advised the client to contact the US financial institution to ask them whether they would accept notarised documents as an alternative for the stamp. The US institution agreed to accept documents notarised by a notary.
- Notary Help: Advice to identify a local notary. We directed the client to the database of notaries held by the Faculty Office of the Archbishop of Canterbury in England and Wales, and explained that notaries in England and Wales are specialist lawyers who can certify the documents.
- Certification Process: The certification process involved two parts. Notrasy stamp to witness wet signatures on the affidavits needed on the forms. As well as the Notary to stamp and confirm the identity and proof of address.
Results
- The client was able, after a couple phone calls with us, fill out the forms on her own with our guidance.
- Thanks to our signposting, the client was able to use a notory as an alternative to Medallion Guarantee Stamp. She was able to use a notary, which the US financial institution accepted.
- Signposted to a suitable notary to get all the documents notarised in full and sent to a US lawyer, allowing for an efficient probate.
Conclusion
Summary: The client was helped through the maze of paperwork for US inheritance with clear instructions and practical help. She successfully navigated through the complexities of US inheritance paperwork. This case highlights the value of financial guidance and the importance of consulting with financial advisers when navigating complex international inheritance as a beneficiary. Through several focused calls, we were able to clarify confusing terminology, propose practical alternatives, and ensure that all steps were completed accurately and efficiently. The close communication and tailored advice provided through these consultations empowered the client to confidently manage the intricate paperwork and achieve a successful resolution, ultimately securing the inheritance without unnecessary stress or financial burden.