Estate Planning and Trust Accounts

[ultrarunner]

If nothing else starting this thread is therapeutic for me…

Lots of things going on around the death of a parent and banking was not even on my Radar.

Moms Estate Lawyer/CPA asked why I informed the bank of moms passing?

He said just to continue on as I had been as no sense making things more complicated winding things down.

I told him I said nothing and it was the Bank that sent a letter informing me of moms death and Social Security taking back the last direct deposit… which begs the question if the bank willing returned funds based on moms death the bank is fully aware of her passing.

Maybe my Social Security when the time comes should be in a bank with only one single account to make things easier for my heirs?

 

[ultrarunner]

The Branch Manager tends to a revolving door… few there very long while waiting a promotion to the suburbs…

The local banks are all fortresses to some extent… some having chambers were you exit or leave through a locked cell which holds you until permission from the guard to proceed.

All I can think from Life Safety is there must be interlocks to release in the event of Fire…

The system is just like entering a secured area of a Detention Center…

 

[Sigarms]

Betting on friend over family might or might not be okay but I would very much consider making the son co-executor so he has equal control.

God willing, if things go as planned for our son, in the near future at age 18, he won't be living anywhere near our state which we reside in. Due to his age, we think it's a lot for him to digest if he were to become an exector.

The reality is it's up to the people who create the estate to lay it out as speciffically as possible to where any money should be distributed. This is where it takes time and effort laying out how the estate should be distributed IMO.

I could be wrong, but the exector can not go against the written wording of the estate creators as to how the money is distributed?

 

[2manyrocks]

The Branch Manager tends to a revolving door… few there very long while waiting a promotion to the suburbs…

The local banks are all fortresses to some extent… some having chambers were you exit or leave through a locked cell which holds you until permission from the guard to proceed.

All I can think from Life Safety is there must be interlocks to release in the event of Fire…

The system is just like entering a secured area of a Detention Center…

There were unrepaired bullet holes in the interior walls behind the tellers in one of the bank branches in East Nashville dating from the late 1970s.

 

[Sigarms]

Fortunately for me it never came to be as individuals remarried or the kids became old enough.

It’s on honor to be considered but I’m glad it never put into action.

I would never put a burden on a non family member who I consider a good friend, not to pay accordingly from the assets of the estate they would be executor of (the executor in our case gets paid more than the distribution to family because we consider him family to give him this job function).

End of the day, it's only right if you're going to put all that crap on one person in our opinion.

 

[ultrarunner]

Too much mental effort on banking the last 25 hours

I had a small $130 tax refund check that I deposited at a different branch as my branch was having computer issues.

The other branch asked for a lot to deposit the check and then said 14 day hold… ok

3 days later I get a letter saying 14 day hold without specifics other than check profile.

A few days later I get another letter saying hold reduced to 10 days… Bank America

 

[ultrarunner]

I would never put a burden on a non family member who I consider a good friend, not to pay accordingly from the assets of the estate they would be executor of (the executor in our case gets paid more than the distribution to family because we consider him family to give him this job function).

End of the day, it's only right if you're going to put all that crap on one person in our opinion.

Trust says without Bond or Compensation

 

[Sigarms]

Back to Sigarms, I think you need to think about naming your son as Co-executor if you are firmly decided on having a friend as exec. Also, you need to think about whether you want your documentation to also state that if your son has attained a specific age like 25, he can serve alone without the friend. You might think you have the time to change this later, but if you suffer a stroke or accident that leaves you incapacitated to make this change, then you're stuck.

Assuming we live that long (no one is promised tomorrow) we were thinking perhaps age 28 on our son.

However, you bring up a good point to think about about written changes in the future if we are no long on this earth in the near future.

 

[ultrarunner]

God willing, if things go as planned for our son, in the near future at age 18, he won't be living anywhere near our state which we reside in. Due to his age, we think it's a lot for him to digest if he were to become an exector.

The reality is it's up to the people who create the estate to lay it out as speciffically as possible to where any money should be distributed. This is where it takes time and effort laying out how the estate should be distributed IMO.

I could be wrong, but the exector can not go against the written wording of the estate creators as to how the money is distributed?

A lot of my friends are only child so it simplified a lot of things…

 

[Sigarms]

My brother had a no co-signer credit card at 16 with a $200 limit secured by his bank account as at 16 he was a lifeguard for the park district…

Have to laugh, my son finally got a credit card through our / his bank last week at age 18.

He bought his car over a year ago, and still has a decent amount in his savings account. .

Son had the option from the bank to list us in some fashion as co creditors to increase his credit limit from $500 they originally set up for him. He told the bank no, this is his account and he didn't want his parents involved and this was his credit alone. They (the bank) are however charging him $16 to set up the account. We told him to pay any credit charges like clockwork, and after a year, tell them he doesn't want to be charged for the use of the credit card. If they say no, he should be able to shop around.

The irony is we set up an account at a local credit unit, and sooner or later, we're leaving the bank anyways as we've just had too many issues dealing with them since they were bought out. The first buyout wasn't too bad, after the second buyout, we have absolutely no loved for them for various reasons.

I'm getting old. When were were in California, a place wouldn't take cash or credit cards. My son used his cell phone to make the payment and I'm scratching my head...

 

[Sigarms]

A lot of my friends are only child so it simplified a lot of things…

Yes.

I was an only child, it made things VERY simple when my dad died and he and my mom already had a trust set in place in the late 90's. It wasn't until after he died that after seeing how things played out, we set up our own trust.

Say what you will about the headaches of dealing with a trust, I'm certain it's simpler than having to deal with probate and having the state involved.

My wife has a sister, and lets just say it's interesting on how my mother in law (FIL died 3 years ago) on how she wants to "set everything up" because my sister in law has some issues she is still dealing with as an grown adult.

You have 3 or 4 kids with any assetts to be distributed, good luck charlie.

 

[seville009]

If you have no need for the trusts anymore, review the trust agreement to see what your ability (as Trustee) is to terminate the trust.

Generally (not in all cases), a Trustee can terminate a trust by simply distributing the remaining assets to the beneficiaries.

 

[2manyrocks]

Assuming we live that long (no one is promised tomorrow) we were thinking perhaps age 28 on our son.

However, you bring up a good point to think about about written changes in the future if we are no long on this earth in the near future.

I apologize but I may not have been clear enough. If you were in a car wreck that left you alive, but unable to function, it might be impossible for you to change your will even if you wanted to. This is why I suggest taking care of business now.

I get the impression from what you have posted in this thread and others that your son is pretty financially responsible. If it's ultimately his inheritance at stake and he is of legal age and responsible, then that's why I'm suggesting he at least be named as co-executor to keep an eye on his inheritance instead of entrusting it all to a friend whom I know zero about.

 

[ultrarunner]

Several of the only child group had very little to inherit or home and accounts in joint accounts or joint tenants with right of survivorship…

I thing with high 10 million estate exemption a lot of the IRS interest is no longer there say when the estate is only a fraction of that.

 

[ultrarunner]

If you have no need for the trusts anymore, review the trust agreement to see what your ability (as Trustee) is to terminate the trust.

Generally (not in all cases), a Trustee can terminate a trust by simply distributing the remaining assets to the beneficiaries.

That’s the direction I’m going with these accounts…

Overall there is still the partial interest the the rented parking lot owned by dad and his brother.

The rent is paid in two checks.., one to Uncle and one Dad’s trust.

 

[2manyrocks]

Of course the continuation of the trust depends on the terms of the trust as to when it terminates or may be terminated, but barring some term of the trust requiring it to continue, I suppose the 1/2 rent paid to the trust could be assigned to the three siblings to be paid directly to them so that the trust could be terminated? But that would also mean deeding ownership to the three siblings and then what happens if one dies?

Increasingly fragmented real estate ownership has its own challenges.

 

[Torvy]

What is the right kind of trust?

I won't pretend to be a trust attorney. All I know is that some types of trusts immediately transfer control to a trustee upon death, so the assets in the trust don't go through probate and are not subject to estate taxes because they are technically not part of the estate.

 

[ultrarunner]

At one time during the 3 hour sit down legal asked for the Probate Documentation.

The entire point of the Trust is to bypass probate.

Several times I had to correct the Bank officer when she confused me with my father, etc while speaking with legal… she also shared her screen a few times and had to make changes.

One sibling said OK as long as I get the blessing of Moms Estate Lawyer along the way and paying the legal fees is just the the reality.

I’ve known two that simply walked away from inheritances not wanting to be involved and one was quite substantial.

Another elderly friend had a lot of Bonds and all were in his name with POD (payable on death) on each… nieces, friends and shelter… he said it makes it cut and dried…

Don’t hear about POD much anymore.

 

[Sigarms]

I apologize but I may not have been clear enough. If you were in a car wreck that left you alive, but unable to function, it might be impossible for you to change your will even if you wanted to. This is why I suggest taking care of business now.

I get the impression from what you have posted in this thread and others that your son is pretty financially responsible. If it's ultimately his inheritance at stake and he is of legal age and responsible, then that's why I'm suggesting he at least be named as co-executor to keep an eye on his inheritance instead of entrusting it all to a friend whom I know zero about.

I mentioned I agreed with your assesment. That said, as mentioned, if things go as planned, he will be no where near us until the age of 22.

He is very fiscally responsible, but the reality is our 48 year old friend is more fiscal responsbile at this point. When he (our son) gets to age 24 or perhaps older (which we should still be alive by then hopefully), he may take the role of executor, but not before that age.

The question that you didn't reply on, which I'm curious about, is if the trust is explicit in writing on where the money / capital in our posession goes, can the executor make up their own rules and bypass the written trust? The impression I got from our lawyer is no. That is why at this point in time, we are comfortable we're were at per the written trust.

Added reality is I trust the person (with my life) who we've pick for this time as the executor more than most of our family who is of age who could handle the responsibility. You may not know him, but I do

 

[Sigarms]

Don’t hear about POD much anymore.

If that is where your money is tied up (bonds), POD does make things very simple.

Where the thought has to come into play is everything else that is considered an assett.

My dad left me 30k in an account with the same credit union that I got into. I use this credit union for a credit card for the last 30 years, have a very high credit limit and always thought very good of them (to the point that I talked to my wife about switching our banking accounts to them because we're going to leave the local bank sooner or later).

Even though it was a POD, dealing with this credit union was one of the biggest PITA dealings I had to go through per paperwork. I wanted the payout the EXACT same way my dad was taking it out for his retirement, like $700 per payment, twice a year for $1,400 annyally) After all the BS I went through trying to get this straight, they paid the majority of the funds within 7 months (I called and told them they made a mistake after their first deposit to no avail). Then, on the last payment, they send me off an email and informed me that a mistake has been made and they have to sit on the remaining last payment. I'm just like scratching my head. Told my wife there is NO WAY we are putting money in with them the way their "estate department" handled this.

I'm not a complete idiot. I'm not afraid to ask questions, and I can follow instructions, but they still royally F'ed it up all on their end and I gave up on trying to deal with reason.