The charge will vary from firm to firm, and may be a fixed fee or an amount based on a percentage of your estate. U.S. Supreme Court Rules Inherited IRAs are Not Protected from Creditors, Three Liability Planning Tips for Physicians Anyone Can Use, The Wrong Successor Trustee Can Derail Your Final Wishes, The Tragic Loss of Star Trek’s Anton Yelchin: Lessons for Estate and Legacy Planning, The Three-Year Review and The Three-Year Plan, The Shocking Truth About Asset Protection Planning, The Perils of Promises...Marlon Brando’s Story, The Lifetime QTIP Trust: Or (How to Maintain Control of Your Estate and Keep Spouse No. The executor will locate and collect your assets, as well as pay your debts and taxes. The executor and successor trustee can be the different people, but do not have to be. How Does My Annuity Fit Into My Estate Plan? Estate Planning - Why Me, Why Now, and Is a Will Enough? What These 4 Famous Estate Planning Debacles Can Tell You About Proper Planning, What Sumner Redstone's Estate Planning Challenges Can Teach Us. Designating the same person as the executor of your estate and your successor trustee will minimize … When you make your Will, you need to appoint a person or organisation to administer your estate. Personal Representative. Executors and trustees perform similar functions, though one major distinction is the time commitment that may be required. Typically, states use the same guidelines for executor fees when determining trustee fees. But whether they should be the same individual can depend on several … Trusts: Take Control of Your Wealth Distribution! It is better to name a sequence of trustees or executors rather than joint ones. A Powerful Exercise to Surface the Values You Want to Pass on to the Next Generation, 5 Tragic Mistakes People Make When Leaving Assets to Their Pets, 5 Things Every New Mother Needs to Know About Wills, New Legislation Could Mean the End of Estate and GSTT Taxes What This Means for You and Your Family, 5 Mistakes Made by Successor Trustees (and How to Prevent Them), Better to Play it Safe: Proactive Estate Planning and Cognitive Impairment. The executor’s duties also include the requirement to obtain an accounting of assets by the trustee or trustees. The executor and successor trustee can be the different people, but do not have to be. You may want to get some professional help to make sure everything goes smooth. Scott Royal Smith is an asset protection attorney and long-time real estate investor. Upon an incapacity, the successor Trustee takes over the role and responsibility for a Trustee. Why Your Estate Planning Project Must Morph into a Process, Estate Planning Tips for Commitment Without Marraige, 3 Celebrity Probate Disasters and Tragic Lessons, 3 Examples of When an Irrevocable Trust Can – and Should – Be Modified, 3 Famous Pet Trust Cases and the Lessons to be Learned From Them, How Powers of Appointment Can Improve Your Trust, How to Avoid Sending Your Loved Ones (and Assets) through Probate, How to Choose the Right Agent for Your Incapacity Plan, Year End Estate Planning Tip #4 – Check the Privacy of Your Estate Plan, Year End Estate Planning Tip #3 – Check Your Mental Disability Plan, Year End Estate Planning Tip #2 – Check Your Beneficiary Designations, Year End Estate Planning Tip #1 – Check Your Estate Tax Planning. The successor Trustee generally has the same duties and responsibility of a Trustee. This can be tricky, considering the circumstances. Or Do I Need Both? The question that occurs is this: Is it a conflict of interest to be both executor/trustee and beneficiary? Knowing the differences between an executor vs. a trustee in California can help you a lot! What to do with family heirlooms and keepsakes. Most people do not realize the extent of the responsibility they assumed when agreeing to serve in this capacity. A person can be both an executor and a trustee of a testamentary trust. Umbrella Insurance: What It Is and Why You Need It. Upon the trustee owner’s death, the successor trustee will distribute the assets held in the trust to the named beneficiaries and subsequently close down the trust, similar to an executor, but without the burden of court ordered probate. Generally, the executor of an estate may be expected to perform certain types of duties, including: Represent the estate for legal purposes: ... successor trustee. Should I Transfer My Home to My Children? The role of Executor is often completed over a short duration, whereas a Trustee may have ongoing responsibilities for many years to come. // ]]> Nennig Law Offices, LLC | Disclaimer | Website Design by Zola Creative I’ve Been Named as a Guardian. If the estate must probated in court, as will typically occur if there is only a will, then as executor you are required to notify creditors of the probate court action and of the assets of the estate. Really. Issues to Consider When Gifting to Grandchildren. Can a Non-U.S. Citizen Create an Estate Plan in the U.S.? 2 Happy. Kids Going Away to College? Common items identified and handled on the memorandum of personal property are jewelry, guns and other valuables. Yes, You Do and Here’s Why. The SECURE Act: How Does It Affect Your Retirement Accounts? Handling the Legal Affairs of an Estranged Noncitizen Spouse at Death. If I have considerable assets, should I consider Medicaid Planning? How Long Should You Keep Important Documents? . Why You Should Include Estate Planning in the Preparation, 5 Ways to Modernize Your Estate Planning Using Flexible Trusts, Three Lessons Business Owners and Others Can Learn From the Estate Planning Mistakes of Farmers and Ranchers, Three Liability Planning Tips for Physicians You Can Use Too, The Role of an Agent Under a Power of Attorney: A Primer. The executor and successor trustee can be the different people, but do not have to be. The fees can either be charged as a percentage of assets or as a percentage of transactions associated with money moving in or out of the trust. IRAs, Annuities and Guardianship: Providing for Your Minor Children after You Die. Can Dual Citizenship Ruin Your Estate Plan? Whether you choose one person or several people serving together will depend on the specifics of your family. What to Do After a Loved One Passes Away? 5 Steps for Coordinating Plans Across Generations. To be valid, a trust must identify the following: the trustor, the trustee, the successor trustee, and the trust beneficiaries. If there is no will, then your executor will distribute assets in accordance with state law. An executor is ultimately responsible for distributing the estate assets to the heirs in accordance with the terms of the will. How to Fund Your Business or Start-Up With Self Directed IRA Investors, Top 10 Self Directed IRA Questions: A Bona-Fide Checklist, Top Six Duties For Trustees and Executors of Estates, The estate documents and the assets of the deceased, Survival Guide for Trustees and Executors, Benefits Of LLC For Rental Property Ownership, When Delaware Statutory Trust Trustees’ Hands Are Tied: 7 DST ‘Deadly Sins’, How A Delaware Statutory Trust Attorney Can Help Your Investing Strategy. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth. When you are creating a will and a trust as part of your estate planning, you need to name an executor as well as a trustee, which can both be the same person, if you wish. Four Easy to Avoid Mistakes People Make at Tax Time, Four Estate and Legacy Planning Tips for the Suddenly Wealthy. My Loved One Has Died: As an Heir or Beneficiary, Do I Need an Attorney? Regardless of whether the asset will be held or sold, you should immediately notify secured creditors of the death of the deceased person. What and When Should You Tell Your Children About Their Inheritance? When a Will directs the assets into testamentary Trusts, the executor transfers the assets to the trustee at the end of the probate process, and the trustee takes over handling the assets for the benefit of the beneficiaries according to the instructions in the Trusts. Don’t be hesitant to negotiate with unsecured creditors, such as credit card companies. Look to negotiate with these creditors and if you are in probate court already, wait until they actually make a claim in the probate court (following notice of the case and deceased persons death you will be required to provide) before paying those creditors. Also, if the identity of heirs is in question, you may need to get approval from the court as to the proper heirs to receive proceeds from the estate. Why You Should Think Twice Before Ruling One Out, What if you don’t die? Avoid Family Fueds Through Proper Estate Planning. Upon your death, your Attorney-in-Fact’s power ceases and your Executor’s power, assuming he or she is appointed by the Probate Court, commences. Can You Bequeath Your Frequent Flyer Miles? Who should I choose to be my executor? 5 Tips to Avoid Common Problems. document.write(new Date().getFullYear()) Surprise! and accomplishing estate planning too, Family Values and History Are Still the Best Inheritance, Estate Planning in Wisconsin for Second Marriages. If I Don't Have an Estate, Do I Really Need to Consider Estate Planning? Hopefully the will or trust will state what shall occur in this instance. : Strategies to Enhance Your Success, Five Key Considerations for Your Estate Plan, Your Personal Property Memorandum: 4 Tips for Success, How to Coordinate Your Retirement and Estate Plans, How to Avoid a Disastrous Will or Trust Contest, Want a Greater Sense of Purpose? When the executor’s duties to the trust end, then the trustee’s duties begin. Sometimes this can involve drama, emotional support, and other sticky situations. Maybe start with an offer of 1/3 of the amount owed and see if the unsecured creditor will accept that amount as a payoff. If I Don't Have an Estate, Do I Really Need an Estate Plan? Also, if the deceased person had assets in multiple states if they only left a will, you may need to conduct probate in multiple states. State laws can also specify how successor trustees … In most revocable living trusts, you act as the trustee. So, unlike an executor, a trustee may be serving in his role for a long, long time. Tips for Working with a Law Firm Get the Most Out of Your Work with Your Lawyer. There are a number of common situations where you will need to go to court to obtain court approval in administering the estate. Will Your Family Be Able to Find Your Original Last Will? How Your Health Savings Account (HSA) Works with Your Estate Plan, Organizing for Tax (and Estate Planning) Season, What to Expect from Estate Planning in 2018, Why a Spendthrift Trust Can Be a Great Solution for Your Heirs, There’s Never A Better Time Than Now To Get Your Affairs in Order, Four Reasons Why Estate Planning Isn’t Just for the Top 1 Percent, How to Share Family History and Heirlooms with Your Estate Plan, Do You Own Rental Property? The trustee could be an individual or a corporate entity. Plan Your Legacy. Does that portion of the estate go to your sibling’s surviving spouse or children or to the other siblings? The affairs of an estate … How Proactive, Comprehensive Estate Planning Can Help. (Are You Making It, Too? The trustee of your trust is named in your trust document.. An executor holds the role only until he or she distributes the deceased’s assets, while a trustee is committed for the duration of the trust, which can span years, if not generations. 5 Things to Consider, Three Tips for Talking About Your Estate Plan During the Holidays, Investment, Insurance, Annuity, and Retirement Planning Considerations, Warning: Don’t Let Creditors Inherit from You, Caution: Creditors Now Have Easy Access to Inherited IRAs, 5 Reasons to Protect Your Retirement Accounts Now, Why receiving an inheritance changes your estate plan, Estate Planning Considerations for Benefits Open Enrollment, The More You Know: Reverse Mortgages & Estate Planning, Trusts -The Swiss Army Knife of Estate Planning, What Estate Planning Awareness Means For You, Big “Life Changes” Often Mean Big “Estate Plan Changes”, Why Joint Tenancy Should Not Be the Go-To Plan for Newlyweds, 5 Tips for Successfully Receiving an Inheritance, Do It Now! Additional Thoughts. Importance of Properly Revoking Powers of Attorney, Why Your Heirs or Beneficiaries May Receive a Smaller Inheritance Than You Thought, Seven Ways to Avoid Family Fights over Your Property, Avoiding Financial Grief: How to Protect Your Significant Other from Frozen Accounts, How to Handle Savings Bonds in Estate Planning and at Death. Simply put, executors are to Wills what trustees are to Trusts. What do trustees do? In a revocable living trust, your successor trustee will be responsible for making sure your assets are passed on and managed in accordance with your wishes after your incapacity or death. Because your successor trustee should be someone you know and trust, many people name one or more of their adult children in this position. Things to Consider When Picking a Personal Representative. Now that we’ve got that covered, let’s go over the six most essential duties of executors and trustees. Cryptocurrency and Estate Planning: What You Need to Know! 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