Estate Planning and Trust Accounts

[ultrarunner]

As long as you have sane relatives your comment makes sense. However, given some family circumstances, sometimes someone not related to you would make better sense to be the executor given some family dynamics IMO.

A sincere question... if bills need to be paid by the deceaseds executor for whatever reason, why would any loving family member be upset the least bit if a family member who was the executor got reimbursed from the trust for what they paid if it came out of their own pocket? Is there a dollar limit that is acceptable to pay out of your own pocket, say like $8,000 for a funeral that wasn't planned?

End of the day, this is a first world issue. Some people living in the US are not so fortunate that they can't even afford a proper burial for a loved one, let alone having to deal with money "left over".

I just reimbursed myself for the funeral expenses paid in May... $5500. Mom's lawyer said to just keep track and ok to pull from her individual savings which I am on.

Also things like the ambulance, her house utilities, property tax already here, home owners, car registration...

With the 2 Trusts plus mom it's juggling 3 different entities each having bills to paid and income to account for plus annual tax filings and professional fees.

The nity-grity comes in with the disposition of non cash assets.

 

[Torvy]

As long as you have sane relatives your comment makes sense. However, given some family circumstances, sometimes someone not related to you would make better sense to be the executor given some family dynamics IMO.

I was only talking about my siblings. My mom is one of 8 and their situation put such a bad taste in our mouths, we just don't want the loss of our parents to drive us apart.

 

[Sigarms]

I was only talking about my siblings. My mom is one of 8 and their situation put such a bad taste in our mouths, we just don't want the loss of our parents to drive us apart.

My dad was one of 10 and my mom one of 12. Pretty much all my aunts and uncles on both sides of my parents family had 3-5 childrent themselves.

Way I see it, the more family you have, the greater the odds of having bat crap crazy in the family.

Believe me, I can tell you stories about bat crap crazy relatives LOL

That said, in my families defense of bat crap crazy, we have doctors, engineers, business owners and internation bankers include as well. Whole hodge podge.

Perhaps one odd reason why I'm glad I was an only child LOL

 

[Sigarms]

Also things like the ambulance, her house utilities, property tax already here, home owners, car registration...

Add in back taxes that weren't paid for 50 years, oil bill for the furnace along with money fixing the house to try and sell it. Those are some of the reasons why my aunt "disinherited" my father when he was the exectutor of the "family house" because in her mind, her being the oldest child, she should get the house and my father was spending her money.

If your siblings don't HAVE to have the money (in their minds to "survive") and they aren't questioning every move you make as the executor, consider yourself a very blessed man

 

[JethroB]

My dad’s Will instructed me as executor to create & place certain income producing assets into a Trust. I am sole trustee. I requested a TIN online from the IRS. I then rolled the assets into the Trust and opened a simple business checking account in the Trust’s name. Annually checks are written by me to family members to distribute the net income from the Trust as instructed in his Will. They each annually receive a K-1 (like a 1099) for tax purposes. When me and my siblings are gone the trust dissolves and the adult grandkids get it all. There is no trust document other than the Will. Pretty simple. It never occurred to me for a bank or any other paid entity to be involved. For our purposes it wasn’t necessary.

Thank you Dad for keeping it simple and extending your wishes and hard earned possessions out a generation before it could possibly be squandered. And for placing such trust in me.

 

[ultrarunner]

I was only talking about my siblings. My mom is one of 8 and their situation put such a bad taste in our mouths, we just don't want the loss of our parents to drive us apart.

Mom is one of 10 where the farm passes to the next generation, generally the oldest male, with the proviso should land be sold the proceeds apportioned equally to siblings…

It has worked well for generations… and kept the farm together.

The few grandparent’s personal belongings were amicably partitioned when moms parents passed with zero drama…

Mom being the oldest girl received her moms bible and rosary… another the sewing machine, another dinnerware, etc.

 

[ultrarunner]

Add in back taxes that weren't paid for 50 years, oil bill for the furnace along with money fixing the house to try and sell it. Those are some of the reasons why my aunt "disinherited" my father when he was the exectutor of the "family house" because in her mind, her being the oldest child, she should get the house and my father was spending her money.

If your siblings don't HAVE to have the money (in their minds to "survive") and they aren't questioning every move you make as the executor, consider yourself a very blessed man

Too early to tell… both financially sound.

One brother physically moved out the day after graduation from High School… no bad feelings but for 6 years he worked summers on a ranch in Nevada… it was always an adjustment coming home at the end of summer after being so independent… dad worked at the same ranch in the 1940’s

My parents were strict and said under this roof we have rules… brother said I respect that so no drama but also why he moved out High School Graduation…

We all had been working at an early age and he supported himself as weekend stable manager and graduated UC Berkeley…

Other moved out in college when his college friends were desperate to pay rent when one dropped out of school… it was an offer too good to pass on.

I was involved with work, school and helping my parents/grandparents so even when I moved it was just 2 minutes away… and I checked in every day…

One prefers to liquidate everything and another would like to hold and I would like to buy moms home as it abuts mine through the back acerage…

We even have our own tractor trail linking… through the woods and over the creek to grandma’s house in real life.

 

[ultrarunner]

My dad’s Will instructed me as executor to create & place certain income producing assets into a Trust. I am sole trustee. I requested a TIN online from the IRS. I then rolled the assets into the Trust and opened a simple business checking account in the Trust’s name. Annually checks are written by me to family members to distribute the net income from the Trust as instructed in his Will. They each annually receive a K-1 (like a 1099) for tax purposes. When me and my siblings are gone the trust dissolves and the grandkids get it all. There is no trust document other than the Will. Pretty simple. It never occurred to me for a bank or any other paid entity to be involved.

Thank you Dad for keeping it simple and extending your wishes and hard earned possessions out a generation before it could possibly be squandered. And for placing such trust in me.

Did you have probate?

 

[JethroB]

Did you have probate?

Yes but no issues. Just stamping the Will and issuing a Letter Testamentary to me granting me the power to execute the Will instructions. Plus a couple thousand $$$ for the (inept) lawyer’s fees.

 

[ultrarunner]

Appreciate the reply… no matter how old… much to learn.

Dad had a little 15’ boat with outboard from the 50’s we really enjoyed as kids… after too many visits to the DMV for boat and trailer I said it can stay in dads name forever… it was valued at $300.

Maybe dumb but practical…