About wills and executors
11 years ago
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Bank as co-executor -- pros and cons?
Comments (10)The legal terms are getting mixed here and this is not a good idea. A will has executors. A trust has trustees. Anyone, including an institution, can be named as either one. HOWEVER, an executor gets paid a set fee for settling an estate, as outlined by your state laws. Depending upon your state laws, a will may or may not be accepted as valid with only witness signatures and no notarization. State laws must be followed precisely when it comes to determining the validity of a will. A trustee gets paid for expenses only. If you have named a bank or a professional fiduciary (e.g., an attorney), they will get paid for their time at standard hourly rates determined by your county court. A non-fiduciary (ordinary citizen, whether related to you or not) will NOT BE PAID FOR THEIR TIME, only for their expenses, by the trust. In order for a trustee to be eligible for time reimbursement from the trust, the trustors (originators of the trust) MUST have included such permission in the trust document before notarization. As has been pointed out, an estate under a trust can be just as time-consuming and difficult to settle as an estate probated under a will. It is your personal responsibility to make it easier to any trustee or executor to find all the necessary legal documents that are needed, after your death(s). You should always identify secondary executors or trustees in the event the first person needs to resign for any reason (ill health, disinclination to spend time and trouble to act as the estate's fiduciary). The vast majority of middle-class folks do not need an RLT to disburse their estate, and if they do have an RLT (which we do, for example), they need a thorough explanation from the estate attorney as to possible pitfalls and disadvantages of an RLT vs a will. A will is made public through probate. A trust never passes through probate and is always confidential. If for any reason you think there is a risk the trustee might abuse their responsibilities - it is far from unknown, and more common than you would think, relatives or professional - then you should consider naming a co-trustee (whose signature will be needed for any legal actions by the trust), who will be able to immediately audit any suspicious activities by the other trustee....See MoreExecutor of estate
Comments (19)She will also have the opportunity to choose a successor... You should exercise caution on comments like this since this like so many of the other comments made will vary from state to state, right down to the name of the position. Here, there is no successor appointment power unless specifically provided for in the Will and the position is called a "Personal Representative". Also a relative, especially children of the decedents are often appointed without a question since it's often the norm here. The number of co-executors (which can be male or female unless you want to specify exectrix, or executrices), co-personal representatives, administrator and other terms for the same position is a personal choice. It sounds like the major responsibilities will be to pay for final illness, file taxes, dispose of real and personal property and the like. You may want one or want more than one. One thing you need to keep in mind. YOU do not appoint the executor of your estate, you nominate someone or more than one and the Court is the one who approves it and appoints them. They have NO power until that court appointment. If you nominate someone and your relatives don't like it and have reasonable reason, they can go to court and challenge it. Also, you need to give the executor powers in your Will or the Court will have more involvement. Former Chief Justice Warren Burger made a mess out of his estate by giving his executors no power. You should also decide whether you wish them to be bonded and/or supervised. I assume she has a Will currently and is considering changing the nomination which will require something in writing and it's probably best to do a new Will if it's a simple one or at least a codicil. A notarized letter may be sufficient depending on your location, to convince a judge of desire and intent as long as others don't claim duress. There's advantages and disadvantages of having one or more than one. Depending on the amount of work involved, it's often nice to have someone share the work. Normally there's not a ton of decisions that an executor makes, but there can be, depending on the estate. There is no one right answer whether to have one or more than one. In my Will, I'm nominating two people, if they agree to serve, and giving the option that if one does not want to or doesn't qualify (or meet the requirements I lay out for them) the other has the option to serve individually or have another co-personal representative and I am nominating in order of preference a number of other people whom I trust to be cooperative enough to make it easier on the person. There's a lot of ways to avoid hassles. Name beneficiaries on bank accounts, certain properties can be as a trustee or in joint tenancy, living trusts, and more. Properties can be given away or sold, however that can be tricky in places two, because here, you can't give away large sums right before you die or the Courts will yank it back under the theory that you knew you were dying and tried to give it away to avoid taxes or the like. Another thought: You could have her put a power for you to appoint a co-exector to assist. But nothing stops you from having someone assist you with certain things. Just keep in mind that as an executor (or whatever name it's given) YOU are responsible to do it right and if someone wants to make trouble, they could so it's something to be cautioned about. How much squabbling would you honestly expect? Greed does different things to people. I've sure seen a lot of it in my own family. Good luck....See MoreWhat to include in a letter to your survivors/will's executor?
Comments (26)I'm bringing this back up because I heard about it on Len Tillem's radio show. He calls it the list of 11, and I think it's on his website.. The List of Eleven One of the most tedious and difficult tasks in administering a trust or an estate is finding the decedent's estate planning documents and asset information. Frequently, children have no idea where their parents kept these important documents. After you pass away, the last thing you should want is for your children to have to search through your belongings in a tragic scavenger hunt to find your will, stock certificates, and other important papers. To avoid these difficulties, you should organize your personal and financial data. This is where the list comes in. Collect the information described in this list and give a copy to your relatives, or put the list where you know they can find it. In case something happens to you, the List of Eleven is one of the best ways to ensure that your relatives can find all your vital records. The name of the bank where you have your safety deposit box, its number, and the location of your key. The numbers for all of your insurance policies, health, life, auto, home, burial, etc., and the names and addresses of the agents for each policy. Itemization of your stocks, bonds, mutual funds, and the numbers of each, and the name and address of your broker. The names of the banks or savings and loans for each of your accounts, and the account numbers. The location of your cemetery plot or mausoleum niche. The location of your Will and the name of your attorney. Your credit card numbers. Your Social Security number. The name and address of your mortgage holder, account number, and the amount of the outstanding debt. The name and address of your accountant, and where your past income tax returns are located. The type of memorial or funeral service you want....See MoreExecutor of husband's will
Comments (20)Still working on this issue. I have hired a financial advisor to guide me through protecting our joint assets as well am my own. I don't believe he will be moved on this issue so I am simply going to protect what I can and have opted to keep my earnings separate. Recently, he brought up splitting the cost of a repair to one of our properties which is not in my name. I declined and let him know I could not contribute to something that was not protected. I think it got him thinking that his plan is flawed. It's made things more complicated financially but I feel better. Admittedly, he has anxiety and abandonment issues...See More- 11 years ago
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