Question about Will Executors

[SeattleRocks]

I’ve got an issue I’m trying to figure out.

My wife and I have a large estate consisting of several houses and other investments that would have to be liquidated when we pass.

My issue is around executors. We don’t have any children or close relatives we would trust to be an executor for our estate and we wouldn’t want to burden any of our friends as liquidating our estate would take a lot of time.

Today - our will appoints a law firm we have worked with in the past to act on our behalf but I would expect those costs would be very high and I want to consider other options as we are in the process of redoing our will.

Is there any other options any of you have dealt with that you would recommend that can act as our executors instead of a pricey law firm in our situation?

Are there any firms out there that are dedicated and specialize in being executors for situations like this. If so how do they work and how do they charge?

Any other ideas?

Thanks in advance for any advice.

 

[GrayHare]

One option is to create one or more trusts, retitle assets into those trusts, and designate as the trusts' backup trustees your beneficiaries of those assets.

 

[SeattleRocks]

Interesting idea. Never thought of that. All of our assets will go to charities so I would need to figure out the mechanics of that.

Thanks for your advice and suggestions to on. Something to look into.

 

[audreyh1]

Do you have heirs?

Where do you expect the proceeds to go?

 

[SeattleRocks]

No heirs. Our estate will all go to charities.

 

[audreyh1]

No heirs. Our estate will all go to charities.

You are in luck then. The charities can handle this type of thing.

 

[SeattleRocks]

Yeah but I need somebody to act as the main executor to liquidate the properties, manage the assets etc because the estate will then be distributed to 10 different charities.

I know the charities have their own receiving team but I need an overall manager/executor to first get it to a final state to distribute.

Maybe I can get one of the larger, more established charities to act as the executor even though they will only receive a percentage of the proceeds. Something to check into.

 

[socca]

I'm not an expert on this topic, but don't some states specify the maximum fee that an executor can charge an estate? If so, then all you have to do is figure out your state's maximum and ask if you're OK with that.

I can personally testify that selling properties out of an estate can be time-consuming if done "properly". You might decide that your state's maximum fee is quite reasonable considering the time that paralegals will have to spend to get the job done.

 

[RE2Boys]

Have you investigated into working with/through a community foundation to establish funds/grants to hold and distribute the assets? Possibly they could act as the executor.

 

[Dash man]

We have a trust with Charles Schwab Trust Company as executor. They’re reliable and less expensive than an attorney.

 

[lucky penny]

I'm not an expert on this topic, but don't some states specify the maximum fee that an executor can charge an estate? If so, then all you have to do is figure out your state's maximum and ask if you're OK with that.

I can personally testify that selling properties out of an estate can be time-consuming if done "properly". You might decide that your state's maximum fee is quite reasonable considering the time that paralegals will have to spend to get the job done.

There are no statutory guidelines in Washington for executor fees, but typically the executor's fees are about 2-5% of the value of the estate. As you indicated, the work in liquidating a large estate can be very time-consuming. Have you discussed this with the firm you've worked with?

 

[JoeWras]

No heirs. Our estate will all go to charities.

We are in the same position and we have named a trust company to deal with it.

We're dead, we're not going to worry about the 2% fee. It is better than trying to burden a friend who would do it on the cheap.

 

[pb4uski]

Many banks have trust departments that can handle wills as well as trusts.

 

[DrRoy]

You could check for a friend or relative that would be willing to do the work and compensate them well for it.

 

[SeattleRocks]

Thanks to all for the suggestions/recommendations. I now have many options to go explore. I’ll probably end up doing a trust and allowing them to deal with it all.

This forum is fantastic. Thanks again to all. Super helpful.

 

[DuluthGA]

Check into fiduciaries that handle money so special circumstances. I’m familiar with comsense . biz (no spaces) that handle funds in trust type situations but should be less expensive than attornies

 

[Sunset]

Sell all the complex stuff now... Sure you will pay some taxes but since you don't have heirs to worry about it's not a big deal.

The amount the charities are going to get from your estate is pretty small compared to their annual budget, so having you pay the tax and getting the best price might work out better for them.

Charities will hire someone to "help" them dispose of your assets (houses) and frankly nobody will look/care if the price achieved is best, more interested in fast and done.

Especially if you have actual expensive art, like paintings, they don't sell well at local estate auctions, but are fun to read about someone buying it for $500 and then turning around and selling it for $2.5M

 

[DuluthGA]

Dont sell. Let the charity sell as they wont pay taxes

 

[GrayHare]

DuluthGA has a good point. Donating an appreciated asset means any capital gain on it won't be taxed.

 

[Sunset]

Dont sell. Let the charity sell as they wont pay taxes

True, but they have to know the value of the item or the tax savings will be lost on the low price of the sale.

If a person has complex, valuable stuff, it may be a lot better to pay the tax than to have the Charity screw up the donation.

Here is a story of a fellow buying 2 originals donated to the Sally Ann, paid $100 each..
He sold the 2 of them for $135,000

https://www.godreports.com/2018/07/rare-famous-painting-of-jesus-found-in-thrift-store/

 

[DuluthGA]

Probably correct about OP getting best value on sale of properties. In GA i know you can transfer property or portion of to charity at time of closing and charity owns/sells simultaneously. Any non-cash or stock will have to have appraisal for donor /estate to include as deduction so charity will have idea of worth.