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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.
I think this points out the problematic parts of this in my estimation. My mom's estate pays 1% to manage her trust.
Why would you drag this out for 30 years--not you the OP, but you the aunt? That seems cumbersome. If this is a multi-million dollar estate, as OP seems to indicate, then why not pay the 1% and have professionals administer the trust. Because this is not a normal use of an executor. There are rules about getting the money distributed in a certain amount of time. I would think at least one of these heirs would go to court to change this arrangement.
I think this points out the problematic parts of this in my estimation. My mom's estate pays 1% to manage her trust.
Why would you drag this out for 30 years--not you the OP, but you the aunt? That seems cumbersome. If this is a multi-million dollar estate, as OP seems to indicate, then why not pay the 1% and have professionals administer the trust. Because this is not a normal use of an executor. There are rules about getting the money distributed in a certain amount of time. I would think at least one of these heirs would go to court to change this arrangement.
There’s a difference between managing an estate and managing trust. You shouldn’t manage an estate for a decade or more but it could be more than responsible to manage trust for that long. A trustee manages trust, an executor/executrix manages estates. It’s helpful to understand the two roles, what they mean while also knowing the same person can be responsible for both. An executor should not be in the role for a decade or multiples but a trustee? Absolutely possible and reasonable
Thank you, that helps me understand the issue here. I guess I thought the OP was executor.
I think I may have mixed the two, so thank you for that clarification. I should probably read the original post again!
Okay, here is the situation, sorry if I got anything confused:
"She's very much an organized advanced planner like me and has amended her trust and made me executor of her estate, trustee of her trust upon her passing, as well as named me as her power of attorney for financial situations and medical decisions is she can't act for herself."
Okay, here is the situation, sorry if I got anything confused:
"She's very much an organized advanced planner like me and has amended her trust and made me executor of her estate, trustee of her trust upon her passing, as well as named me as her power of attorney for financial situations and medical decisions is she can't act for herself."
The OP could be executor, trustee and POA.
At death the POA is terminated
The executor administers the estate which would most likely include setting up the trust accounts
The trustee of the trusts would administer the trust until the trustee’s death, resignation or termination of the trust
The 3 can be connected to the same person or they could be different people. I get the OP point of not wanting the trustee role/responsibilities indefinitely
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.
The OP has the same problem I have-irresponsible heirs. It is true I’ll be dead and who cares if they blow it? Right now I am alive and since it is my money I want to decide how to distribute it. In my case my niece who is 13 doesn’t get anything until she is 23 and that is only AFTER my DD37 dies. If my DD were to die while niece is a minor her parents would blow the money before they even got it.
Quote:
Originally Posted by phoebesmom
I think this points out the problematic parts of this in my estimation. My mom's estate pays 1% to manage her trust.
Why would you drag this out for 30 years--not you the OP, but you the aunt? That seems cumbersome. If this is a multi-million dollar estate, as OP seems to indicate, then why not pay the 1% and have professionals administer the trust. Because this is not a normal use of an executor. There are rules about getting the money distributed in a certain amount of time. I would think at least one of these heirs would go to court to change this arrangement.
This is exactly why I have a trust. The fee irritated me at first but someone pointed out this is a fee the heirs pay because of their poor money skills.
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