Trusts, Wills, and Estates: War Stories from a Career Trust Officer

What great comments on a critical topic. I found that the hardest part of having my trust prepared was determining who would be the executor/successor trustee. I had to conclude - unfortunately - that no one in my family would be either qualified enough or patient enough to implement some rather complex distribution provisions in my trust, and I didn't want to saddle any of my friends with the job. I named a professional fiduciary recommended by two local trust attorneys, and while I'm sure he will implement the provisions the way I want, his fees are quite high and are charged annually during the distribution period. Reading Jim's article leaves me wondering if I should contact a bank trust department to see if their fees are lower. Thanks again for a great article on a really important topic.

I would suggest working with an estate lawyer to plan this all out. Five percent for a bank seems pretty high. Choosing an executor is crucial -- whether a bank, an attorney, a child, another relative or a friend. Look at how much this will cost depending on who you choose. I heard from a friend about a situation in Idaho where a widow who had inherited a sizable sum wanted to spend a third of it on a condo and spent months fighting the bank to get the money (note: I can't vouch for this, as it's second hand). I would start with a seasoned attorney to go over the pros and cons of every possible choice. They have seen it all and can help reassure you and offer peace of mind. Having been through this twice, get one who will be on your team and who will act in your best interest.

I've been meaning to update my will and living trust - this article has inspired me to call the lawyer who set it up originally - thanks for the reminder!

Now I'm wondering if credit unions do the executor thing - think I'll make a few calls and find out - my only bank business is my mortgage - all else is with credit unions.

John - Please let us know what you find out. We do ALL our banking with a credit union, mortgage included! I'll try to find out from mine as well. It would take a lot of pressure off the kids or other relatives we might think would want to "help out."

I have personal experience with a will and trust for a man with 6 married kids, one of whom bad self-inflicted financial (and life) problems. The father spit all assets equally among the 6 siblings, but bypassed that one sibling and left his share that sibling's 6 kids. Very much feared that sibling would either instantly waste the money, or it would be paid to creditors. That sibling finally straightened up his finances (and life) to the point the father amended the estate documents so that sibling got his share directly. The beautiful thing was that sibling knew (knows) nothing about the father's original arrangement...he straightened up on his own without inheritance threats waved over his head.

Also, same situation, the troubled sibling has been left out of the successor executor and trustee listings, as the father felt there was too much risk of a relapse and subsequent bad decision with all the sib's inheritance.

A lot of things can be done in estate planning to protect someone's wishes.

HEF - Financial institutions that offer trust and estate services must have trust power authority from a state or federal entity. The best way to find out is just to call the institution and ask. I am not aware of a credit union with trust powers. After practicing law at the beginning of my career, I became a trust officer at major banks for 18 years. And just because a bank has trust powers, don’t assume they’ll be great at administering estates. It’s probably better to use a bank with an actual trust department that has been administering estates for many years. Sometimes attorneys will serve as an executor, and if you have confidence in the attorney or law firm, this may be one way to go.

Our family had a son who had many troubles including drug addiction. He frequently asked our mom as well as other family members for financial help. When mom died she left her money directly to all the sibs and created a trust for the son, to be administered by one of the siblings. That proved to be very difficult, so the sibling who was the administrator assigned the trust to a lawyer, and that worked out a lot better for everyone.

AARP conducted a survey a few years back asking Seniors what was their number one "Regret" in life. The number one regret was that they "Worried too Much" about everything. As I read the comments here, I saw a lot of "Worry" about things after one dies. Really?! Things will change after one has departed and the departed cannot make any adjustments.

Aside from having a Will, which is necessary, but having a Trust for "MOST people" is a waste of time and money. Unless one has a very complex financial situation, you do not need a Trust as many people are led to believe by organizations/lawyers that profit from creating and managing Trusts.

Also, all that crap that Seniors have acquired over the last 50 years and being stored in their shed and two-car garage are no longer collectables. The younger generations don't want it. So, that stamp/coin/train/beanie baby/toy/crystal/grandma's antique/etc. collections have no meaning to them. Research for yourself. Go visit antique dealers and try to sell some of it to them. Surf the internet and see the tens of thousands of stuff that people are trying to unload. Good luck!

If one is not part of the "Complicated" financial situation groups, just add the names of the people you want to receive your money after you have departed to your account(s) (bank accts, IRAs, etc.) as beneficiaries or as joint owners. (If one does not have any family members that can be trusted, then one has a different set of issues.)

Keep things simple. Your beneficiaries will love you for it. Use a Will and other documents to take care of everything else.

Roland, I wholeheartedly agree with your assessment of various collectibles. Beneficiaries need to understand that something is only worth what somebody is willing to pay for it. Just because Grandma says the Hummel figurines or some other collection is worth a lot is not necessilary true.
If you, as a bene, don’t believe what the executor is telling you a collection is worth have your own appraisal to prove to yourself what the items are worth.

Jack

John,
After thinking about our interview, I would sum up our discussion by advising individuals to really think about and understand how they want their estate to be distributed, work with a knowledgeable, experienced estate attorney and once in place, review your estate plan periodically to ensure your estate plan properly reflects your wishes.
Jim

I'd like to suggest one other thing to consider in your estate planning - your pets. If you don't have a friend or family member whom you can trust to give a good home to your pet for the remainder of its life, consider that after you pass, that pet will likely end up in a shelter and who knows what will happen then. As a single with 3 dogs, two of them special needs, that's my biggest worry and it was a huge part of my estate planning. If my sister will care for them, all is good, but beyond that, I have contacted the directors of two rescues that I trust, and have reached agreement with them about caring for my dogs. I have set aside money for their care, as well as a significant "bribe" if the rescues will take them and use high levels of due diligence to rehome them. I really don't care what happens to the rest of my estate, but being certain there was a plan in place for my dogs was a big issue for me, especially during Covid.

I am very sad to say that my cousin Jim, the expert in this article, passed away about a year ago. He wasn't even 70 and was in good health. No one was a more solid citizen and good friend to the world. Goes to show that we must all seize the moment, because we never know what is ahead. He would probably be shaking his head at the Aretha Franklin estate snafu too. If you haven't got a will yet, go get it done!