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I haven't looked for awhile, so things might have changed, but when I looked up bank fees charged for managing trusts - it was outrageous (if the estate is of any size). And think: You don't know these people - they're just people - and they're not going to do things the way a responsible relative would.
Compute the charges on the estate at 1, 2, or 3 percent - totally outrageous for the duties they would perform.
Last edited by considerforamoment; 11-07-2023 at 05:40 PM..
I haven't looked for awhile, so things might have changed, but when I looked up bank fees charged for managing trusts - it was outrageous (if the estate is of any size). And think: You don't know these people - they're just people - and they're not going to do things the way a responsible relative would.
Commute the charges on the estate at 1, 2, or 3 percent - totally outrageous for the duties they would perform.
What basis would you have for this claim?
Last edited by Lowexpectations; 11-07-2023 at 06:01 PM..
My experience as a trustee and all of the detailed work that goes into doing it right.
That’s not basis for believing a corporate trustee would not make decisions that a responsible relative would. If anything they would act generally in a more responsible way than a relative would and do so with zero emotion involved.
Another FWIW, my BIL asked me to help him so that my wife's great nieces and nephews would receive money only to be used for education. So I agreed to be his executor and trustee, but as soon as one family member started acting weird, I had to respectfully decline.
I've never been a fan of annuities either, but this thread has me rethinking how they possibly might work for his requirements.
If someone is that concerned about the risks of being a trustee, there is E&O insurance for trustees. Depending on the trust language, it could be considered a cost of trust administration and reimbursable or an expense of the trust.
If someone is that concerned about the risks of being a trustee, there is E&O insurance for trustees. Depending on the trust language, it could be considered a cost of trust administration and reimbursable or an expense of the trust.
Or you just decide not to take the responsibility and avoid insurance cost and legal liability for a thankless role
OP you know and have laid out the pros and cons of your aunt's plan.
You've said she's concerned the beneficiaries may not handle the money well, or use it wisely. Let me say in advance this isn't meant to be harsh in any way, but, sounds like she's trying to control people from the grave. Disbursements over 30 years? Really?
Except for the granddaughter (grandchildren) all the other people we're talking about are adults, right? Let them have the money at her passing -- and if they blow it they blow it. Or disburse money over maybe 10 years max...but 30? I know your aunt would have to make changes to allow this. Any chance you might discuss this?
If any of the adults who may not be responsible are the parents of the grandchildren, then the grandchildren's money must have a tighter lock on it....and maybe event more controls on that money.
I wouldn't want the parent blowing all their money, and chomping at the bit to influence the grandchild at 18 to give them some of their money.
I wish you well.
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