Need advice on Executor choice for Trust

[itsmyparty]

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.

 

[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.

 

[itsmyparty]

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.

 

[kcowan]

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".

 

[itsmyparty]

Great.....thanks again for the information!!

 

[HsiaoChu]

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

 

[clifp]

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.

 

[Texas Proud]

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....

 

[Meadbh]

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?

 

[KB]

Thanks for the book reference. I will be the executor of a multi million dollar estate and think the book will help me prepare.

 

[Brat]

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.