Professional executor and trustee recommendation (child, parent, money, relative)
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My brother-in-law (BIL) asked me to be his executor and trustee. For the most part, he has a house that is paid for and a Fidelity account. He has no children, so he wants to leave his remaining 5 siblings some cash, and the rest to an education trust for anyone in his sibling's families wanting to go to college, trade school, etc. So the trustee job would continue for years until the education trust is depleted.
Long story short, (although I'm capable) I don't want either job. I don't want any legal obligations.
BIL says I'm his last resort, as he doesn't want to use anyone in the family (for whatever reason). And he is not a fan of hiring a lawyer to be either his executor or his trustee. So I've looked into alternatives. I learned that certain banks and investment firms (such as Fidelity) will provide various estate services such as executor and trustee. Anyone have experience with paying someone to be an executor or trustee?
OP is smart to decline this long-lasting thankless (to the OP) job. You are not the last resort.
BIL should simplify his estate to name all the people he leaves money to without making the younger generation prove they are using it for education.
Of course he is not a fan of hiring someone, that will cost money.
We have no children and have a trust for nieces and nephews who get the money when the last person of 2 of us dies.
My brother-in-law (BIL) asked me to be his executor and trustee. For the most part, he has a house that is paid for and a Fidelity account. He has no children, so he wants to leave his remaining 5 siblings some cash, and the rest to an education trust for anyone in his sibling's families wanting to go to college, trade school, etc. So the trustee job would continue for years until the education trust is depleted.
Long story short, (although I'm capable) I don't want either job. I don't want any legal obligations.
BIL says I'm his last resort, as he doesn't want to use anyone in the family (for whatever reason). And he is not a fan of hiring a lawyer to be either his executor or his trustee. So I've looked into alternatives. I learned that certain banks and investment firms (such as Fidelity) will provide various estate services such as executor and trustee. Anyone have experience with paying someone to be an executor or trustee?
I haven't done it yet but in a similar boat. My live-in bf would not be capable of handling it, and he's the beneficiary on everything. How much they charge is regulated by the state. In NJ the executor fee is 5% of the estate's worth, plus a percentage of any income earned by the estate before probate is finished. I too don't want to use a stranger.
You can also use an accountant, if your brother has one he trusts. Just make sure there's a backup if it's a small firm. My bff said she'd do it, but she's my age, and lives out of state. My niece said she would too. I am considering letting my niece do it and setting aside funds in the will to be used for a probate lawyer. Hiring a probate lawyer is much cheaper than having one as executor.
IMHO seems needlessly complicated, but of course he is free to do whatever he wants. I do not have a trust...no reason for setting one up to "manage" assets after I'm gone. I don't have any family members who can or would be suitable to take on the executor job on so I chose a state-licensed trust company. Their fees only start when probate does. To keep probate simple and quick (and thus inexpensive), I have arranged direct beneficiaries for specific things and those beneficiaries can do whatever they wish with the asset they receive. Why doesn't he do something like that so few if any assets need to be probated?
Last edited by Parnassia; 06-08-2022 at 11:55 AM..
IMHO seems needlessly complicated, but of course he is free to do whatever he wants. I do not have a trust...no reason for setting one up to "manage" assets after I'm gone. I don't have any family members who can or would be suitable to take on the executor job on so I chose a state-licensed trust company. Their fees only start when probate does. To keep probate simple and quick (and thus inexpensive), I have arranged direct beneficiaries for specific things and those beneficiaries can do whatever they wish with the asset they receive. Why doesn't he do something like that so few if any assets need to be probated?
Agreed that he is making it complicated, and that is one reason I don't want to do it. Yes probate can be avoided, but the end result is still the same - he wants to "manage" after death as you say.
Since you are knowledgeable on avoiding probate, curious why you are not avoiding it altogether. Even a simple probate requires a probate lawyer. Unless it is a summary administration, I wonder how "inexpensive" it will be. Either you pay the lawyer before death to avoid probate altogether, or your estate pays a probate lawyer after death.
Agreed that he is making it complicated, and that is one reason I don't want to do it. Yes probate can be avoided, but the end result is still the same - he wants to "manage" after death as you say.
Since you are knowledgeable on avoiding probate, curious why you are not avoiding it altogether. Even a simple probate requires a probate lawyer. Unless it is a summary administration, I wonder how "inexpensive" it will be. Either you pay the lawyer before death to avoid probate altogether, or your estate pays a probate lawyer after death.
What trust company are you using?
What assets usually end up requiring probate varies so much by state. There isn't anyone with survivorship rights to my current real estate. Of course if I eventually sell the property, I can revisit my arrangements and probably will if/when circumstances change. TBH, what probate might cost doesn't keep me up nights. There's only a couple of specific bequests.
I have a working agreement with Peak Trust Company in Anchorage.
Even if you are named executor and trustee in the will, you can turn it down. The court will then proceed in using a 3rd party or another family member/friend, etc can petition to become executor & trustee.
What assets usually end up requiring probate varies so much by state.
Thanks for the trust company name.
I would think what ends up in probate varies by estate, for a variety of reasons such as ignorance. (For example, most people I have talked to believe that a Will bypasses probate, which couldn't be any further from the truth.) If someone wants real estate to bypass probate then they would hire a lawyer. Exactly how that gets done varies (for example a Lady Bird Deed in some states), but I doubt there is any state where it can't be done.
Quote:
Originally Posted by charmed hour
Even if you are named executor and trustee in the will, you can turn it down. The court will then proceed in using a 3rd party or another family member/friend, etc can petition to become executor & trustee.
Well sure. Since I am writing his Will, that won't happen. I've agreed to help with his estate planning. Just need to help him find a third party, because he doesn't want any of the family members.
I would think what ends up in probate varies by estate, for a variety of reasons such as ignorance. (For example, most people I have talked to believe that a Will bypasses probate, which couldn't be any further from the truth.) If someone wants real estate to bypass probate then they would hire a lawyer. Exactly how that gets done varies (for example a Lady Bird Deed in some states), but I doubt there is any state where it can't be done.
Well sure. Since I am writing his Will, that won't happen. I've agreed to help with his estate planning. Just need to help him find a third party, because he doesn't want any of the family members.
Wills are generally speaking, for an “average” person relatively straight forward in terms of “this is what I have and this is what I want done with it” but this sounds a bit more complicated than that. I’d be really leery of drafting a will unless I was someone with legal experience with estates and trusts. Estate attorneys aren’t cheap for reason imo.
Agreed. In my state, the wording for how it was signed in the presence of witnesses and a Notary is important, according to state statutes. My parents used attorneys for their Wills initially. When my mother needed a small change, I did it myself. The probate court had no problem with it.
With my BIL, I've advised him to review everything with an attorney.
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