Revamping will, need some ideas...

[OldAgePensioner]

My current will has:
1. 1/2 liquidated assets to mom.
2. 1/2 liquidated assets split equally among siblings.

New thinking is that they for the most part are spendthrifts and very financially irresponsible. That is the reason for revising my will. My first thinking on the new will is:

1. Set up a trust.
2. Trust provides mom monthly equivalent of US average monthly income. And pays all her medical costs including everything required.
3. Trust pays siblings half that amount and pays for a health insurance policy.
4. Trust pays siblings offsping same as siblings.

Any suggestions? I want to help them but not waste my lifes savings on luxuries for spendthrifts.

Can anyone think of some other ways I might achieve that? And is this even possible?

 

[Martha]

I think the trust is a good idea. Beyond that, I don't have much helpful to add. I am not so sure about paying amounts tied to average monthly income. More often the trust kicks off a percentage of assets to beneficiaries. Or payments could be made to cover various necessities, like health insurance. The risk of tying to average US income might be early loss of trust principal. Another risk might be arguments over what is "average" income.

We are setting up a trust, with a valued friend as trustee. This is somewhat unusual and most seem to use a financial institution or relative. This friend has the judgment needed to distribute money for necessities as I have a disabled brother who will get money under a special needs trust. We have another relative who will get money all at once, another who will be paid over time, and others who will get money for schooling. Rest goes to charity.

 

[OldAgePensioner]

Martha,
Thanks for the comments. Yeah, the average income may be the wrong way to go, maybe I should specify an amount with a yearly inflation adjustment.

And like you've done, I may go with a trusted friend. How much effort is it to be a trustee? Does it require a lot of time and effort?

Again thanks for the thinking points.

I'm seeing this lawyer soon and I'll pass on what I find out.
http://www.willsandtrustschicago.com/

 

[SteveR]

OAP,

I am the trustee for my late wife's trust. While it is not a huge job, it does take time each month and especially at tax time. All income in the trust is fully taxed.

The basic stuff any trustee:

1. Follow the instructions in the trust. This usually means finding and estate lawyer to help as the language is not easy to follow.
2. Find all the documents for property, assets, accounts, titles, etc.
3. Inform any beneficiaries of the trust and what they are entitled under it.
4. Some trusts require the creation of "Family" or "spousal" trusts under it to provide for the maintenance of the surviving spouse; this has to be set up and bank account, brokerage accounts etc. set up.
5. Maintain the trust accounts.
6. Pay off any debts associated with the trust owner.
7. Distribute assets as defined in the trust. Sort of like #3 but this is the actual distribution stage and not informing them. Sometimes the kids or family of the deceased has to wait for the surviving spouse to die to collect on the trust assets.
8. Have the taxes on the trust paid each year.
9. File for an EIN number for the trust. (this is needed before anything else really.)
10. Keep family members at bay. This was one I had not expected but I guess I should have. MIL wanted the assets; she was not named in the trust so was not entitled to anything. Deceased's sister and brother are named but do not collect until after I go. When that happens, the next named trustee will have to do it. I have changed the trustees in the original trust to the next one being a financial institution since the trust used to have it as her brother. He is one weird dude and I would hate for him to be responsible for handing out the assets to his sister.

I would suggest you find someone you trust and that can follow the requirements of the trust. A family member might not be your best bet since if there is more than one family member remaining, it could cause friction amoung them.

This is a short list but gives you a basic idea.

 

[OldAgePensioner]

SteveR,
Sorry to hear of you loss. I have no confidence that my family can handle a Trusteeship even though some run businesses and are financially well off.

Hey, thanks a million for that info.  It certainly helps me to understand what's involved.  Now if I could just find a relative with a brain.

I'm leaning towards asking my best pal of 25 years to be Trustee.  Your comments will be passed to him so he can decide if he wants to. In lieu of that, I might make an Institution the Trustee with him sub Trustee.

Thanks again, great info.  This board is amazing.

EDITED: I read your post more thoroughly.

 

[Newell]

I'm not sure what you mean by "trust" as their are a number of options. I'm going through the process now for my mother. In her case, I'm setting up a living trust because she has real estate in several states. The real estate will be transferred into the trust now to avoid having to go through sparate probate processes in each state.

I'm using Quicken Will Maker to produce the necessary documents (living trust and durable power of attorney). Does anyone have any experience, pros or cons, in using the product?

 

[OldAgePensioner]

oldbykur,
It's probably going to be some variation on a Grantor Trust. I have only 3 assets; equities, 401k, IRA. No property at all except for a couple of expensive guitars, some ivory Chess and Majong sets.

Haven't used the Quicken but I'm going to go to a lawyer cause I don't have the saavy on these things.

I'd be interested to hear if anyone has used Quicken also.

 

[nfs]

Haven't used the Quicken but I'm going to go to a lawyer cause I don't have the saavy on these things.

I'd be interested to hear if anyone has used Quicken also.

When you previously wrote, "[siblings] for the most part are spendthrifts and very financially irresponsible", I think you disqualified any piece of software. Go see a lawyer.

 

[OldAgePensioner]

yeah, nfs. When I go to the lawyer, I might want to be careful what I say. Some of these siblings deserve to be jailed for elder abuse.

 

[OldAgePensioner]

Can't seem to get any lawyers to return my calls. I'm completely rewriting my will.

Anyone know whether I should have my will written here in Chicago or where all the recipeints are in California?

 

[Mr._johngalt]

Can't seem to get any lawyers to return my calls. I'm completely rewriting my will.

Anyone know whether I should have my will written here in Chicago or where all the recipeints are in California?

I have the same problem (multiple states). Also, I have decided to rewrite my own will
once again. Met with an attorney but it raised more questions
than it answered. I don't want to spend a bunch of cash to have a
lawyer working on it. I will do the best I can and let my heirs sort it all out.

JG

 

[Martha]

Can't seem to get any lawyers to return my calls. I'm completely rewriting my will.

Anyone know whether I should have my will written here in Chicago or where all the recipeints are in California?

Illinois, where you live.

 

[OldAgePensioner]

Martha,
Once again thanks. I searched many legal websites and evidently that question isn't asked much. Is it a legal requirement that the will be written in the state of current residence? What happens when you move?

Problem is, I'm only here on a lark. I'll be outta here next May. I'll most likely move overseas for a few years and even then moving around.


Thanks for any answers you can provide.

 

[OldAgePensioner]

JG,
If I did not need to set up a Grantor Trust, I would do mine own also. But, after coming home and seeing that 90% of these hiers would go through my hard earned, LBYM savings, I'm in a hurry to redo my will.

I cringe at what my will stipulates currently. If I die before this will, I hope it's instantaneous cause otherwise, I will scream at myself like a dog.

 

[Mr._johngalt]

JG,
If I did not need to set up a Grantor Trust, I would do mine own also.  But, after coming home and seeing that 90% of these hiers would go through my hard earned, LBYM savings, I'm in a hurry to redo my will.

I cringe at what my will stipulates currently.  If I die before this will, I hope it's instantaneous cause otherwise, I will scream at myself like a dog. 

Yep, my current will may be better than nothing, but not by much.
My main problem is that most of my assets are held in a small holding
company. This just kind of evolved. So, I have personal assets
and then I have the company, which in turn owns assets. If I die,
the company goes on. No matter who I leave the common stock to, somone
needs to run it. None of my 3 kids has much ability in finance.
What to do? OTOH, it's better than not having any assets to worry
about.

JG

 

[OldAgePensioner]

JG, if I died today, my will is appalling and I can't quit thinking of it's consequences.

My retirement plan during the pre-ER phase was:
1. My will would split equal amounts amongst mom and sibs.
2. I'd live my ER life with, maid , cook, trips, nice furniture, beautiful view.

Well the cheapsteak in me floored #2 and it's trips/nice view.

But , If I die before my new will, I will haunt myself forever.

 

[REWahoo]

But , If I die before my new will, I will haunt myself forever.

So tell us OAP, how the heck are you gonna' come back and make your life miserable?

REW

 

[OldAgePensioner]

I will force myself to look thru a book of Hillary Clinton photos for 7 minutes everyday.

 

[REWahoo]

I will force myself to look thru a book of Hillary Clinton photos for 7 minutes everyday.

Get the will changed immediately.

REW