Estate Planning and Trust Accounts

[ultrarunner]

I may be wrong, but I think Ultrarunner already said the trust says no bond and no compensation. I would guess the no compensation part was included in the trust so the two siblings who aren't trustees don't feel short changed or have a basis to think the trust is benefitting Ultrarunner in some way to their detriment.

This kind of thing IMPO is a mistake in planning because 25 years of having the responsibility of administering the trust and doing all of the work associated with it deserves some compensation. If a corporate trustee had been hired, they'd have been collecting fees all these years and probably would have already hired a lawyer at the expense of the trust to handle the bank situation, too.

A similar thing can happen when the same piece of real estate is owned by multiple siblings. It seems like one will always ending up doing all the work for the others for free.

Very much so plus taking care of mom everyday since 2015... don't get me wrong... it was a privilege and she greatly appreciated it and we had plenty of good times... she even suffered through my cooking!

Nothing meant more to her than being able to stay in her home/church/neighborhood of 54 years... and I promised dad to look after mom the morning he passed away...

 

[2manyrocks]

Personal care from a loving family member is not something that can be bought elsewhere.

 

[Hughman]

Just curious. I understand putting real estate into a trust. Why would you ever put bank/money/investment accounts into a trust when a simple POD can be used for those?

 

[2manyrocks]

Just curious. I understand putting real estate into a trust. Why would you ever put bank/money/investment accounts into a trust when a simple POD can be used for those?

Because a trust permits both long term control of liquid assets and flexibility in their investment as well as distribution. A POD is simply going to transfer the funds directly to the beneficiary at death. In the case of a 16 yo beneficiary for example, you probably wouldn't want to just give them $250,000 at age 16. Instead, the funds could be placed in trust to be invested and reinvested by the trustee based on the trustee's assessment of proper risk/reward as time goes on, and the trustee could be given discretion as to how much money is paid out to or for the beneficiary's living expenses, medical expenses, and education. In one sense, the POD is all or nothing at once. A trust permits long term flexibility in controlling, investing and spending the funds

 

[ultrarunner]

Just curious. I understand putting real estate into a trust. Why would you ever put bank/money/investment accounts into a trust when a simple POD can be used for those?

The real estate is owned by the Trust back when Estate Tax kicked in at 600k

Having the Trust meant Estate Tax kicked in at 1.2m

Fast forward to 2023 and 10m is the current number.

 

[Sigarms]

UR, thanks for the explination, makes sense. Seems your overall issue is limited except for those two taxed accounts.

Also sounds like your siblings would have no quarrels if you got reimbursed from the trust for any money out of your own pocket.

Honestly, sounds like a great family. I just know on my end, some family were like vultures over nothing from my aunt, added I had a father disowned by his sister because he did with the "family home" what his laywer instructed him to. Both instances were not pleasant.

 

[Sigarms]

I guess I wouldn't mind either way. I would rather do the work unpaid than to cause strife among my siblings. On the other side I'd rather my sister get paid to be in charge than pay someone outside the family to deal with it all.

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".

 

[ultrarunner]

Always surprises along the way and always more to learn... at least for me.

I'm planning to open a new Trust Account at a different Bank Monday so as to get the checks I'm holding deposited and get the bills paid... if I like what I hear that is.

No sense depositing to any account I'm locked out of.

My boss just went through this with her mom's passing... basically as accounts were closed the funds were equally split... she said it was so much simpler/transparent that way and everyone was on the same page as it was incrementally distributed...

 

[Torvy]

My MIL had a few hundred dollars in her bank account and a worthless RV trailer. Got a deal from where she donated some parts to science and they paid her cremation costs. My BIL just thanked my wife for handling it all.

 

[2manyrocks]

Tennessee allows reimbursement of funeral expenses paid outside of the estate funds in some situations. A trust fund may provide for payment of those expenses or it may not depending on the terms of the trust.

Estate laws vary so much from state to state that competent legal advice is needed in the state where the estate is located.

Ultrarunner, I think you need to continue trying to pry your trust funds out of the bank for a bit longer. Doesn't hurt to send a certified letter or two to the branch manager recounting the situation it unfolds. If the bank continues to not respond to reasonable efforts to restore access to the trust fund accounts, you do have remedies available.