My friend passed away last month and I attended the wake. He was a retired Navy man and we were both hired by Military Sealift Command the same day in January 1993.as merchant seaman. This is a story about those left behind. He had no idea that at age 61 he would have a heart attack and pass on his second day home on vacation from his ship. But one should be ready yesterday for the unexpected.
The part that got to me was this year 2014 was the year he was planning on retiring after 21 years sailing with the outfit. He was riding his last ship before putting in his papers, but he left behind a cautionary tale that woke me the hell up.
He was ill prepared and his widow is attempting to bury him and has $230 cash to her name, if she goes to the Retired Affaires Office and reports his death, his pension from the Navy will instantly stop. (She was never a US Citizen) and there for cannot collect it. All US Bank accounts will be put into probate and no funds may be withdrawn until that clears. His two children will collect Social Security as they are still young and in school. His house is fully paid for and they have a worry free place to live. His MSC pension 401K is depleted down to a small amount as he took two advances to purchase a Brand new Ford Escape in 2010 and a 2013 Mitsubishi Montero last year, but again both fully paid for.
His wife has in her name a MSC death Insurance in a goodly amount so in time she will be alright. But today and for the next few months while all the paperworks and bureaucratic rig-a-ma-roll is handled she is in tuff city. Someone told her to hold off on reporting his demise until after she can hit the ATM every 24 hours and draw out the max amount ($600.00 per day) I nodded on that idea! (But didn’t say a word)
I advised her to keep one car and sell the other as soon as she can, to cover her cost of living for the next 3 to 4 months when all the paperworks should be done. Being he was a close friend I will aid her as much as I can.
Another friend suggested I buy the Ford, and as much as I would like to and can, I see the problems with doing that. Things like; OH that Paul took advantage of the widow when she was in dire straits. Not her mind you, but the small minded wagging tongues, who love to talk. Better a stranger buy it.
All of this has woken me the hell up, if I don’t bring at least PNP 500,000.00 to the Philippines Mayang will be in exactly the same situation when I pass. That money here in a local bank in only her name will be a buffer until all the paperworks clear and she can start receiving insurance and the bank accounts are active again. Her name is on every account that we have jointly including a few IRA’s. Our house and car are paid for, and I’ve not borrowed money since 1985 until this year but with “Death Insurance on the loan). My visa is insured and paid off (Small balance anyway) upon receipt of the death certificate.
But it took a sad event for me to see the pitfalls of the way I was going. You see I knew that the rest of Mayang’s life would be financially fine but I forgot about the six months waiting for all of the paperworks to clear. I’ll fix that as I write this. On the subject of “Fix That” there are fellow Americans who for a 20% charge of the money they recover for the widow will do all the paperwork for them. There truly are bottom feeders everywhere.
There will be no lecturing from me I’m just pointing out what I have just observed in the last week or so. I will dearly miss my friend and Shipmate. But once more I’ll thank him, as my eyes have been opened; I just wish I could have learned this lesson in a much different way.
This is a good point. Life insurance money doesn’t come quickly and it’s better to be prepared.
Kevin;
I figured enough to cover the burial and at least 6 months for my wife to live on until the red tape clears. I’ve have it all ready for her in another month or two.
Fair winds and following seas! Rest In Peace Shipmate, And Thank you for your service!
Edgardo;
Thank you for your comment he was a great shipmate indeed.
30+ yrs as a shipmen, has all my respect, Edgardo said it so perfectly.Fair winds and following seas! Rest In Peace Shipmate, And Thank you for your service!
Michael;
His ship was in port here in Subic for the funeral, The Captain and a large part of the crew attended. I had sailed with those guys in the past and was proud that they came to send a fellow crew member off. The Captain took it upon his self to insure the family would be taken well care of by Military Sealift Command.
Thanks for the “reminder”… I am not sure we as danish citizens will have the same problems, my asawa is also danish citizen, and as i read the rules, there shouldn’t be that kind of problems. My monthly retirement will continue, but of course, this will make me read thing even closer.
Axel;
There is no probate in Denmark? Does you country cover the cost of the burial also? I’m pleased she will be well taken care of.
They will not cover the expense used here in Philippines, but if i would be buried in Denmark some costs would be covered. I have chosen to be buried here in Philippines, but there should be enough to cover it all. We have also “prepared” for a future living in other ways. I am lucky that my asawa knows what to do in case i will be the one that goes first.
We have probate, but when married it will go easy and fast. We are both Danish citizens. Probate will be what we call “undivided”. if it is clear…my english could maybe be better 🙂
Axel
Or I should learn Danish; I clearly understand what you’ve written. Being buried here is a better plan a moving a body across international borders, that is not something I’d want to be involved in.
I’ve requested to be cremated and my ashes spread across the Subic Bay. Then in November instead of the family going to a bone yard they can go to a beach.
R.I.P to your friend. And thanks for the insight about a detail that is probably overlooked by so many.
Ernesto;
It was sure overlooked by me, and I started that week to rectify my short sightedness. There I sat feeling so sad for my friend’s family and thinking about my mistakes at the same time. It is not a pleasant subject, but one we must think about.
Respect …..
Tavo;
Thank you!
Paul,
As much as we don’t want to think about it, you need to be prepared for anything. It’s sad that it took the death of a friend to make sure your family is taken care of. I know when I talk about death, Anne does not want to hear it.
Randy;
I thought I had a pretty good plan as I have a will and all that is required for my demise. But I had not thought about the 4 to 6 months of BS (AND MONEY NEEDS) until all the paperworks are filed.
Agree, it’s a topic we don’t like to discuss, but it is very important to do it. Also to make a clear and precise will, specially if there are some values – property – house here in Philippines. As a foreigner we can’t own property, so if our Filipina asawa is the first to go, we must be sure to make some kind of arrangement and a last will must be clear and written. Since we can’t know about future, i think it’s important that both “risks” are considered and that there is a very clear will about those things.
I just read in another blog that if your asawa dies “it’s the only way a foreigner can own land/property”.
Anyone knowing anything about that?
Axel;
I believe you are correct as an American was able to sell the house when his wife passed. My (OUR) house will pass to our daughters, but I’m sure they will let me live here.
Axel;
I fully agree with you on that subject, you must talk and write a will. Great advice!
RIP Sailor. Paul it is an inevitable event that we must prepare for. Both my daughter and son have directions to expedite things for their mother when the time comes. All my retirement accounts and other financial matters for her to be comfortable for her remaining days.
Terry;
Shipmate it’s good to be prepared so they will be provided for. Thankfully my daughter is old enough to help her mother and she is fully informed as to where everything is and what must be done. It sounds like you’ve done some smart planning also.
Salute, TIP
Fred;
Thank you!
Sorry for your loss shipmate. I too wish it didn’t come to this to wake us all up.
I have tried many times to prepare my wife for the inevitable. However due to the culture she refuses to talk about it. She thinks I’ll live till 120 yrs. I promise I won’t
I wrote instruction on the computer for her and backed it up on disk. Hope that will be enough.
Dan;
I fully understand the cultural aspect, as I deal with it too. But for me with Mayang standing beside me watch (Her friend) deal with the problems and paperworks it is getting easier for me.
But you’ve got the right idea (And a good one) to have it all written down for your wife. In our fireproof safe I have all the papers she will require to file after I’m…..
(Even I don’t like to say it!)
RIP Ship mate.
Wake up call for me as well Paul.
I have done 50% so Angie would be OK but need to this 100% like now.
Frank;
I was sailing along, fat dumb and happy until reality slapped me in the face. I guess it’s something we really don’t want to think about.
Paul,
I am very sorry for your loss. I agree that it would have been better to learn something like this in another way, but now that this article has been written you have helped others to stop the possibility of the same thing happening to them.
I never really thought about this myself, so maybe I should get it taken care of for me, just in case. I lost a friend last June and it was an unexpected accidental death. His wife and child were left not knowing how to handle everything, so I helped her out with lawyers, etc. But her not knowing what would happen must have been very scary for her. She had not yet gotten her citizenship either, but told her she was safe to stay and could become one if she chose to. And her lawyer helped reassure her things would be ok.
Thanks for the article again. I wish you the best, and hope your friend and his family are at ease now.
Scott
Scott;
Picture the confusion if she was here vice the United States. My friend’s wife knows nothing of the US and is at the mercy of the “FIXERS” only this time the fixers are fellow Americans. Plus her friends are advising her on subjects they know nothing about. I’m going with the cash in the bank method; others may do it their way.
Paul, I remember you writing of your friend before. It is a sad loss. As Scott mentioned, you have used the event, not only to prepare yourself and family, but to help many others to hopefully be prepared for the inevitable. I didn’t know that joint accounts could be tied up after the death of one of the account holders. I’ll have to check on that, along with other things you mentioned. Thank you. Rest in peace to your friend, and prayers for his family.
Take care,
Pete
Pete;
Joint account owners should have access to the account when one member passes, but I have seen cases where the bank/credit union will lock the account until receipt of a death certificate (Which will not come quickly from your local government in the Philippines) So pensions and insurance are slowed down until you receive it.
Paul, someone mentioned that it takes time to collect term life insurance on the deceased. That maybe true, but I heard that funeral directors, at least here in the States, will work with you and will cover funeral expenses in the interim, with the assured knowledge that they will be reimbursed upon the beneficiaries’ receipt of the money from the insurance company.
John;
Do you remember how hospitals here will work with you if you can’t pay? They don’t! Funeral Directors want the money now and I’ve never heard of one wait for a payment. Here it’s a cash business.
Sorry for the loss of your Shipmate.
Neal;
Thank you!
Now are you here now? Where have you been????
Going to the beach rather than the bone yard — super idea.
Loren;
They won’t allow beer in the bone yards, what other way could we go? I told Mayang that if I’m put into dirt and not the sea, that I will come back as the whitest “White Lady” the Philippines has ever seen, and not a happy camper at all. Hell I’ll even come and haunt Pogue Mountain so keep the rum bottle full.
This is a knoty problem area, since survivorship rules are different in different states and countries. My wife and I use joint checking and savings accounts, (both in the US and the PI); but we each have our own IRA accounts and seperate credit cards. She has more credit cards ( referenced to her Social Security number) than I have actually, including both bank and store accounts; that would not be affected by my death. We have done this for many years, and now she also gets social security payments deposited into our joint checking account, like mine are. I think the remaining question is will the joint checking account continue to make repeating payments to our various accounts and utility bills after my death automatically? That I probably should research. I probably should make sure the balance is high enough for those payments to continue for a couple of months after my death, especially to keep her credit cards alive.
Complex topic you raised here Paul. My condolences on your loss of your friend.
Larry;
Just by the fact that your wife has a Social Security Number I’ll assume she is a US citizen. So her path will be far easier than those of us whose wife is a citizen of the Philippines. Other people from Europe and Australia will have to deal with their countries rules and laws. But for a fact, if the local government is involved, it won’t go smoothly.
The entire point of this article was to point out the problems that will arise during the first few months after our (The Husband’s) whatever long range plans we make should work according to each of our circumstances.
Larry;
I leave out one word above and even I can’t understand what I was saying. (Situation Normal SNAFU)
The entire point of this article was to point out the problems that will arise during the first few months after our “DEATH”.
Just an FYI. I’m a U.S. citizen so I only know what applies to U.S. citizens.
1) For a U.S. citizen after death assets held in the Phl are usually distributed according to Phl inheritance laws. Assets held outside of the Phl follow U.S. inheritance laws.
2) You can set up a revocable living trust in the U.S. to hold assets. You control the assets when you are alive but can designate a trustee, usually your spouse, after your death. These assets do not go through probate and are not frozen and can be immediately available to your spouse after death. (However, if a signature of the new trustee is required to gain access to an asset you will still have to wait for the death certificate.) Revocable living trusts are a normal part of estate planning for some people.
Gary;
Let me paraphrase’ you are saying that a living trust requires a death certificate to be activated. Then also would you agree that there had best be some money here in the Philippines to cover your wife’s expenses while she waits the lengthy time it will take to receive the death certificate from the Philippine government. I’ll guess we agree?
Sorry but my statement about a death certificate was confusing. No, the new trustee can legally access assets in the trust upon the death of the original trustee. For example, accounts would not be frozen so ATM or internet access to an account in the U.S. is still available.
Gary;
That is interesting, is your wife a US Citizen and can a Filipina (Non US Citizen) also access an account like that. Because that sound like a good way to conduct business
Hi Paul,
This is getting complicated now. The trustee has to be a U.S. citizen or a U.S. corporation such as a bank that will act as a trustee. However, if you were to have a will wouldn’t the executor of your will be a U.S. citizen? Also, the only disadvantage that I see to using a bank as a trustee is the cost.
Revocable living trusts use to be very popular in estate planning as a way for married couples to avoid paying some estate taxes. This was when the estate tax exemption was only $600k per person. For example, one spouse could pass $600k to anyone and the other spouse’s trust could pass $600k to anyone estate tax free. So up to $1.2M could be passed on by a married couple without estate taxes. If there were no trust when the first spouse died, normally that spouses share would pass to the surviving spouse. When the “surviving” spouse died only $600k could be passed tax free and anything over that would be taxed. However, now the estate tax exemption is over $5M so not too many people need to use a trust anymore. A trust does allow you to avoid probate, however.
Gary;
Well I guess I’ll be sticking with my original plan! (LOL)
Paul, You also got me thinking also. I didn’t realize that a non-citizen was ineligible to collect SS survivor benifets. I guess I need to make plans also.
Hudson;
Or green card holder whom I believe has lived in the US for 5 years. But with ant thing you read on this interwebby thing, check it first before taking any action. But as far as I know, that is the case.
A friend and colleague accidentally drowned where he lived in Portugal,He had lived with his partner and son for many years without divorcing his American wife or making a Will.Result was his partner and son were left with nothing,house,possessions and cash all went to a woman who he had parted from years before. There must be a few here inthe same position with a legal wife somewhere in the past,take heed of this and do something about it or you may leave your loved ones penniless.
Bryan;
An excellent point you bring up, as I have seen that happen here. The legal lady gets all the goodies under international law. You can thank the US for that one.
$40 for a cremation and internment at Clark I checked on it even though I have no intention of departing yet!
“Your inquiry regarding Cremation Burials at Clark Veterans Cemetery was referred to me by Jeff Pradhan of CVCRA.
Cremation Burials are permitted and now constitute at least 25% of our 30 to 40 Burials yearly. We have no Columbarium and continue to utilize a standard Burial plot for Cremation Burials. With 3400 open plots remaining, space has not become an issue and this permits use of a standard VA Headstone, (which we order following Burial).
Cost for a Cremation Burial service is currently 1500 Philippine Pesos, (approximately $40). I have a attached our Burial policy brochure which provides our policies and procedure.
If we can be of further assistance please contact us.”
John
John H. Gilbert, Ed.D.
Chairman, Clark Veterans Cemetery
Commander, VFW Post 2485
Hi Mike;
That is a retired US serviceman’s best option, but a lot of LiP readers don’t fall into that category. Plus even you and I still have to incur the cost of the funeral home casket and transportation to Clark AFB, and did you know there is a permit required for each and every village, hamlet and town your body passes through on the trip there? Better have some money squirreled away just for the scenic drive