Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Need advice on Executor choice for Trust
Old 03-08-2010, 10:49 AM   #1
Recycles dryer sheets
 
Join Date: Mar 2008
Posts: 129
Need advice on Executor choice for Trust

My spouse and I have no children and barring some catastrophy will have a fair amount we may leave behind in this world! We definitely will be leaving $$ to charity, but also have some other recipients as well. Our biggest problem is who to designate as executor if/when we both are not around. Of course if one of us is left behind, it would not be an immediate problem, but since we travel a fair amount...and are really concerned if we both die at the same time. On one side...there are a few younger nephews and one neice but they live in another country and we are not really 'close' to them, but do communicate a few times a yr., and on the other side, a younger brother who can't seem to even get his life in order even after 5 decades of living. He has a son who he's estranged from and we don't know well because of their relationship...both live in other states. Our few 'good' friends are older. The attorney suggested perhaps a bank or a company that specializes in being executors...but you hear so many stories of how they can 'loot' without scrutiny. Anyone use an executor from another country? Perhaps designating joint executors -a nephew and also the brother? Would appreciate any ideas, suggestions or experiences you've had. Thanks alot.
__________________

__________________
itsmyparty is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-10-2010, 11:55 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 5,714
Send a message via Skype™ to kcowan
I would pick the major charity and have a trust created that they would manage for specific (performance-oriented) annual fees. Then stipulate how much of the income they will get (e.g. 20%) and specify how much other worthy causes will receive (e.g. brother 30%, nephews 20%, etc.).

We have a related problem because we have inherited from MIL and Bro over $2M and we were already FI. So this has had a lot of thinking put into it already.
__________________

__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 03-11-2010, 11:32 AM   #3
Recycles dryer sheets
 
Join Date: Mar 2008
Posts: 129
Quote:
Originally Posted by kcowan View Post
I would pick the major charity and have a trust created that they would manage for specific (performance-oriented) annual fees. Then stipulate how much of the income they will get (e.g. 20%) and specify how much other worthy causes will receive (e.g. brother 30%, nephews 20%, etc.).

We have a related problem because we have inherited from MIL and Bro over $2M and we were already FI. So this has had a lot of thinking put into it already.
Thanks for responding. To clarify...are you indicating that the charity acts at the executor? Again...thanks.
__________________
itsmyparty is offline   Reply With Quote
Old 03-11-2010, 11:56 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 5,714
Send a message via Skype™ to kcowan
Quote:
Originally Posted by itsmyparty View Post
Thanks for responding. To clarify...are you indicating that the charity acts at the executor? Again...thanks.
Yes if you have a favourite charity then talk to them about their willingness to perform that role because they are motivated to maximize their returns. Just avoid a "remainder trust".
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 03-12-2010, 10:19 AM   #5
Recycles dryer sheets
 
Join Date: Mar 2008
Posts: 129
Great.....thanks again for the information!!
__________________
itsmyparty is offline   Reply With Quote
Old 03-12-2010, 12:53 PM   #6
Recycles dryer sheets
HsiaoChu's Avatar
 
Join Date: Feb 2010
Posts: 389
You will probably need to designate a real person as your executor, or maybe even a bank. If you find someone you know, you can buy them a copy of the EXECUTOR'S MANUAL which I used for my Aunt's estate. Unless you are giving every last dubloon to one group, they probably won't want to be the executor. Another choice is the lawyer of the estate.

As long as you don't owe anything and for a small 20% I'm sure there are many people here who would happy to take care of your needs to the letter.

Z
__________________
HsiaoChu is offline   Reply With Quote
Old 03-12-2010, 01:57 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
If you intention is to leave a good chunk to a specific charity. Most large charity or churches have a trust department.

In addition to offering services as trustee for you estate, they often will encourage you to set up a charitable remainder trust. This work like a annuity. You give them a donation now, you get a tax deduction now, they invest the money and give you a lifetime income stream. When you die they keep the remaining value of the trust, and often acts the trustee for the rest of the estate.

My grandfather set one up with a church. The concept was great unfortunately a dishonest trustee screwed over my family.
__________________
clifp is offline   Reply With Quote
Old 03-12-2010, 02:05 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,260
I had worked at banks for a long time... almost every one is OK when it comes to estate matters...

If you have a small estate, then yes, the fees can seem a bit high... but if not, then they are a small percent of the total...

A charity can be a trustee, but I do not know of any that would be your executor.... they are very different jobs and your estate should end at some time... your trust can live on. From talking to someone about this, they said the charity would want to 'help' in writing the trust so they can agree on what their duties will be.... to me, not something that would be a deal breaker...

Remember, just because you name someone does not mean they have to do the work....
__________________
Texas Proud is online now   Reply With Quote
Old 03-12-2010, 07:13 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,017
In the absence of suitable relatives or friends who are likely to outlive you both, your best bet is to include your bank in your estate planning. If you have lots of moolah they should make their professional estate planner (often a lawyer) available to you to help you organize wills, trusts, etc. There will be fees for the execution of the will and for administering any trusts, but you'll be dead when they come due, so do you really care?
__________________
Meadbh is offline   Reply With Quote
Old 03-13-2010, 11:53 AM   #10
Thinks s/he gets paid by the post
 
Join Date: Jun 2004
Location: No. California
Posts: 1,600
Thanks for the book reference. I will be the executor of a multi million dollar estate and think the book will help me prepare.
__________________
KB is offline   Reply With Quote
Old 03-13-2010, 01:03 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,913
Always keep the trustee designation current. Sometimes a trustee is no longer trustworthy, or they are not available. The change does not require a major re-write.
__________________

__________________
Duck bjorn.
Brat is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Advice or experience on altering a Trust Zero Other topics 14 12-20-2009 06:55 PM
Advice for a first-time estate executor? Urchina Other topics 11 01-26-2009 09:49 PM
SEPPs - Want To Move Them/Broker Choice - Advice Needed Danny FIRE and Money 6 09-27-2007 12:50 PM
need advice on trust thing tikitoast FIRE and Money 18 06-20-2006 09:30 AM

 

 
All times are GMT -6. The time now is 02:16 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.