Living Trust Trustee Question

[48Fire]

Yes, almost universal for the reasons I’ve stated above.
Gill

Yeah, seems a little unfortunate in some cases. For our SIL with no children, she would get nothing. And BIL almost passed before MIL last year.

 

[Gill]

Any trust will have trustee to execute the trust. But they also need a secondary trustee of you are unable to process the duties of even worse die before Mom.

And there need to be beneficiaries, and secondary beneficiaries If something happens to one of more of the primary beneficiaries.

My aunt died and split her estate 4 ways--disabled son and 3 nieces/nephews. Her son died before she did and the estate was finally split 3 ways. And he had a wife or children, the will wouldn't have probated smoothly.

Why not?
Gill

 

[Brat]

A trust doesn't go through probate if properly implemented.

 

[Texas Proud]

I'm executor of my parents trust, and you should definitely ask your Mom to read it. I was pretty surprised when I read my parents. My wife gets nothing. My share would go to daughter. My sister passed away, so her share was going to BIL - yeah inconsistent. Three shares are going to the three grandchildren. In addition, it is super complicated, and has provisions for reporting, etc. As executor, it would be good to understand and be able to explain FAQ.

Does your sister have any kids? If not, then mother is giving her share to someone she thinks sister would want to receive it... with you, you have a daughter and someone that is normally in line on wills...

 

[Texas Proud]

Just another point of view... I have a sister and brother who do not have any kids... I know that my sister is leaving everything to her siblings.... if any siblings dies before her that is the end of their share... so, it is split between anybody living...

I have no idea what my brother has... very closed to us all...

 

[48Fire]

Does your sister have any kids? If not, then mother is giving her share to someone she thinks sister would want to receive it... with you, you have a daughter and someone that is normally in line on wills...

Yes, we both have children, that's why it's inconsistent

 

[Texas Proud]

Yes, we both have children, that's why it's inconsistent

Maybe your mother does not like your wife!!!! (JK)....


Remember that this is your parents wishes so you have to live with their final decision...


But, I would in a friendly way point out that there is an inconsistency.... I would not say anything about being fair or the like, just that there are two approaches being used in the same document... I would not push for an answer if they did not give one... you would have pointed it out but that might be what they want...

Now, if they say "OH MY", then maybe they did not know that it was being treated differently... they might change it... or not...

 

[48Fire]

I'm over it, but the implementation is clear

 

[wolf]

This is important; get it cleared up soon.

My mother's will specified that estate was to be divided among her living children. Of course it was assumed that would mean all of them, and no more thought was given. Unfortunately my sister died not too long before my Mom, the will was never rewritten (because it never occurred to my mother to do so, I'm sure she never thought about the wording) and as a result my sister's family was cut completely out of the will (her surviving husband and minor children) . This was surely not my mother's intent.

(Of course, my siblings and I did the right thing and divided the estate up equally, including my deceased sister's family. But it's always better to have the actual intent written into the will.)

Most living trusts are written this way. Distribution follows "blood line". Your example is absolutely correct. In my Mothers case. We had to have the
attorney update the living trust. In case, her children passed first, (which did happen), "his" share would go to living spouse.

Another concern, Inheritance goes to surviving spouse. BUT, not the grandchildren. NO guarantee surviving spouse will give any inheritance to
the grandchildren. Again, updated trust can address this concern.

Also, doing the "right" thing, violates the rules of the Trust. The trustee is suppose to follow the rules of the trust.

I am trustee, of my Mothers trust. I would also do the "right" thing.

 

[Texas Proud]

This is important; get it cleared up soon.

My mother's will specified that estate was to be divided among her living children. Of course it was assumed that would mean all of them, and no more thought was given. Unfortunately my sister died not too long before my Mom, the will was never rewritten (because it never occurred to my mother to do so, I'm sure she never thought about the wording) and as a result my sister's family was cut completely out of the will (her surviving husband and minor children) . This was surely not my mother's intent.

(Of course, my siblings and I did the right thing and divided the estate up equally, including my deceased sister's family. But it's always better to have the actual intent written into the will.)

Curmudgeon, I must have missed this when reading this thread, sorry for being late to the game...


How do you know it was your mother's intent to leave money to deceased daughter's family? My mother also has leaving her assets to living children... she was told about per stirpes and said it was the responsibility of the parents to leave stuff to their children... some might think this is harsh, but it is her wishes...

Just to add, she does have savings bonds and part of a trust that will go to grandchildren so they are getting something... my step-kids will not get anything as I was not married when it was set up... I can live with that...

 

[imokurok]

In similar role. I found it to be worth the money to have attorney review and answer my questions. As executor the responsibility is to implement Trust as written. It helps to understand it.

 

[imokurok]

With regard to DW, she is joint on all of my other accounts and worldly possessions, so wasn’t going to mess with trying to get parent to deviate from the “per stripes” language.

 

[Gill]

In similar role. I found it to be worth the money to have attorney review and answer my questions. As executor the responsibility is to implement Trust as written. It helps to understand it.

Actually, as trustee it is your responsibility to administer the trust, not as executor.
Gill

 

[imokurok]

Actually, as trustee it is your responsibility to administer the trust, not as executor.
Gill

Thank you. You are correct. Executor a responsibility associated with will, Trustee is the role associated with Trust. Thanks for picking that up.

 

[hilltide]

I am trustee of my dad's with no children. Everything is split evenly between my sister and I outside of a few "gifts". If I pass, everything goes to my sister.

 

[Curmudgeon]

Also, doing the "right" thing, violates the rules of the Trust. The trustee is suppose to follow the rules of the trust.

Not really. The trust, or will, specifies what is to be done with the estate at the time of death. It doesn't say anything about what the inheritors can or can't do after this, once the estate belongs to them. So at the time of passing, the estate was divided up equally among the 6 living children. The rules were followed. Afterwards, we got together, and each chipped in an equal amount to make up a 7th share, which was given to the minor children of the previously deceased sibling.

How do you know it was your mother's intent to leave money to deceased daughter's family?

Because she's my Mom . Had the family been grown, you may be right. But there were 4 minor children - her grandchildren - that I'm sure she would have wanted to be included. We actually put the money into a trust to be used for their education, so that their father (my Mom's son-in-law) didn't get anything.

 

[meierlde]

Not really. The trust, or will, specifies what is to be done with the estate at the time of death. It doesn't say anything about what the inheritors can or can't do after this, once the estate belongs to them. So at the time of passing, the estate was divided up equally among the 6 living children. The rules were followed. Afterwards, we got together, and each chipped in an equal amount to make up a 7th share, which was given to the minor children of the previously deceased sibling.



Because she's my Mom . Had the family been grown, you may be right. But there were 4 minor children - her grandchildren - that I'm sure she would have wanted to be included. We actually put the money into a trust to be used for their education, so that their father (my Mom's son-in-law) didn't get anything.

One clause that could be included in future drafting is say that children can't get access access to the principal until say age 30 or whatever age you desire it is in trust for them until then. (Perhaps with income going to the children in the interim)

 

[Dash man]

We are giving a percentage to our daughter in laws if they are still married to our sons at the time of their death. The rest would go to our grandchildren, some siblings and our church. If the boys are alive when we pass, the bulk goes to them to decide how to distribute to their families. Church and siblings still get some.

 

[audreyh1]

In my experience drafting and administering wills and trusts, it is quite unusual for a parent to provide for the spouse of the child as a contingent beneficiary if predeceased by the child. Usually the grandchildren are contingent beneficiaries. Generally they wish to follow bloodlines and not risk having their property pass outside the family.
Gill

In my Dad’s case the spouses are contingent beneficiaries after any grandchildren. None of the heirs had children when drafted, and now only the youngest of three has (grand)children and the rest are past childbearing so the feeling was this was more fair rather than surviving spouses being dropped from the will.

 

[Texas Proud]

Not really. The trust, or will, specifies what is to be done with the estate at the time of death. It doesn't say anything about what the inheritors can or can't do after this, once the estate belongs to them. So at the time of passing, the estate was divided up equally among the 6 living children. The rules were followed. Afterwards, we got together, and each chipped in an equal amount to make up a 7th share, which was given to the minor children of the previously deceased sibling.



Because she's my Mom . Had the family been grown, you may be right. But there were 4 minor children - her grandchildren - that I'm sure she would have wanted to be included. We actually put the money into a trust to be used for their education, so that their father (my Mom's son-in-law) didn't get anything.

I hope it was not a big amount or you ran afoul of the gifting laws for filing a gift tax return.... what you described was the 6 getting money and then gifting it to the 7th...


But did you actually hear it from your mom? If not, then you are making an assumption that might not have been her wish.... I can tell you that I would have thought that my mom would have done the same (giving to a deceased child's children) but she did not... when I asked she said that was what she wanted....

There is no problem doing what you did and I applaud your family for doing so, but if one did not want to do it there was nothing legal that you could have done to force it...