estate planning notes

[ER2B]

Is it advisable to have two children to be successor trustees on a living trust or just have one? Both of our children get along with each other.

 

[DrRoy]

Very helpful post.

 

[RetMD21]

My biggest problem was knowing where all the decedent's accounts are. I spent a fair amount of time chasing dead ends and I know that we had some missing whole life policies from the 1950s. Making an asset list is really a big help.

 

[pacergal]

Is it advisable to have two children to be successor trustees on a living trust or just have one? Both of our children get along with each other.

We have both our children listed as co-trustees.

 

[CRLLS]

DW's mother had 2 of her 4 children as co-trustees and co-executors. It worked out fine because these 2 had the most financial knowledge, felt the same responsibilities towards all of the beneficiaries and worked together well. They managed to work thru some financial complications along the way.

My DF only named one of his 3 children as executor and chose the least responsible one. It was not handled well at all.

I would say that it is more important to name the right person(s) rather than to name co-executors or co-trustees. If it works out that 2 children are responsible and honest, then there is no reason to name just the one.

 

[nwsteve]

Both my DW and her brother were listed as Co Trustees on her father's estate doc BUT attorney also included a proviso that provided either Trustee could sign docs individually for the Trust (DFIL had a Living Trust with pour over will )
A good thing as DW's brother had very limited background in a number of the areas and had long standing issues making any decisions about things he did not understand. DW has business background and was able to move things along keeping brother informed but not relying on him to sign. We barely made WA State Estate Tax ( month filing deadline as it was so be sure if doing both kids, they are compatible in decision making approaches and sense of urgency

 

[SecondCor521]

Is it advisable to have two children to be successor trustees on a living trust or just have one? Both of our children get along with each other.

If you name two, you'll want to state whether both must agree in order to act, or if they can both act independently.

If there is a situation where the two might not agree, then it would seem that requiring both to agree in order to act might create an impasse. And it seems impossible to ascertain ahead of time that this situation would not occur.

Therefore, if I were to name two of my children as co-trustees, I would permit them to act independently.

My family just uses successor trustees and executors. We all get along as well.

 

[pb4uski]

Is it advisable to have two children to be successor trustees on a living trust or just have one? Both of our children get along with each other.

Not sure whether it is advisable or not but I'll share how my parent's trusts were designed.

Dad was grantor, beneficiary and trustee for his trust. When he died, Mom became the beneficiary and Mom, one sister and I because co-trustees with the approval of any two of the three of us being sufficient to take actions on the trust's assets. When Mom passes then the trust call for all assets to be distributed to us 5 kids and my sister and I will still be the co-trustees over the distribution.

Luckily for us, we have all been successful to different degrees and none of us "need" the money and we all get along, but there are certain trust assets that some beneficiaries will covet over others so it will be a bit of a negotiation.

 

[Koolau]

I received a suggestion that one could hire a fiduciary for the purpose of executing a trust upon death of the final successor. Has anyone heard of this and how one goes about finding such a person?

 

[pb4uski]

I believe that a bank's trust department will provide that service, obviously for a fee.

 

[Koolau]

I believe that a bank's trust department will provide that service, obviously for a fee.

Yeah, I knew that banks offer trust services. Our kids had trusts given to them by the grandparents. For practically no service - basically quarterly statements - the bank charged them 4% of the trust value per year. I don't want a bank trust.

 

[ER2B]

Thank you all for the suggestions and sharing how your trusts are setup. Wife and I have decided to require that both daughters act jointly. The trust stipulates this. They’re 1000 miles apart VA and FL, but we figured if they want any piece of the estate, they will be forced to work together. Hopefully, this doesn’t happen very soon.

In addition, with the trust being revocable, we have the option to make amendments should there be a need. Hopefully, we shouldn’t as it’ll be more $$$ to our lawyer for any future amendments.

The next decision we need to make is whether to give each daughter a copy of the trust. Both are splitting all assets 50 50. When did or did you all notify your successor trustees?

 

[CRLLS]

You really should ask a person (people) if they would be willing act as successor trustee before you name them in the trust. I would also ask if they are willing to be co-trustee with their sister. It may make a difference. If it is only the two of them as beneficiaries, I wouldn't worry about giving them copies of the trust papers. No dollar amount or account numbers need to be disclosed if you don't want to.

 

[Koolau]

Thank you all for the suggestions and sharing how your trusts are setup. Wife and I have decided to require that both daughters act jointly. The trust stipulates this. They’re 1000 miles apart VA and FL, but we figured if they want any piece of the estate, they will be forced to work together. Hopefully, this doesn’t happen very soon.

In addition, with the trust being revocable, we have the option to make amendments should there be a need. Hopefully, we shouldn’t as it’ll be more $$$ to our lawyer for any future amendments.

The next decision we need to make is whether to give each daughter a copy of the trust. Both are splitting all assets 50 50. When did or did you all notify your successor trustees?

I can't see too many pitfall with both recipients of the trust being equal sharers. What if you ask your kids (or whomever) to be successor trustees and they receive relatively little of the proceeds? We plan to cut the kids in for a bit more than a token but most will go to charities. How much "power" to successors have to undo, delay, or waste a trust's assets if they don't like it?

 

[ncbill]

You really should ask a person (people) if they would be willing act as successor trustee before you name them in the trust. I would also ask if they are willing to be co-trustee with their sister. It may make a difference. If it is only the two of them as beneficiaries, I wouldn't worry about giving them copies of the trust papers. No dollar amount or account numbers need to be disclosed if you don't want to.

Yep, and as a practical matter it's just one of the kids who ends up doing everything anyway, so even if you want to name two or more kids let them act with just one.