Trusts are generally more expensive than wills to create and maintain. A person designated as a trustee is designated in the document to control the allocation of assets according to the trustee`s wishes in accordance with the trust document and its mandates. It is also an effective way to control the transition of your estate beyond the grave. If assets are to remain in a trust (for minors, for a surviving spouse, for tax purposes, or if beneficiaries receive their inheritances in installments), each trust needs a new tax identification number and appropriate accounting and reporting procedures must be put in place. Trustee vs Executor really only has to do with Trusts vs Wills. A trustee manages a trust, manages the assets within the trust, and distributes or manages them as trust orders. An executor, on the other hand, supervises and administers an estate by dividing the property of a deceased person according to a will. Beneficiaries are the persons or entities who receive the assets of the trust after the death of the settlor. No, of course not. You can get help from professionals, especially when it comes to accounting and investing.
You will also likely need to consult a lawyer from time to time. However, as a trustee, you are ultimately accountable to the beneficiaries for the prudent management of the trust`s assets. Choosing the right fiduciary can be a daunting experience. Especially if you have children whose confidence will take care of you, you could certainly feel the weight and pressure to “get it right.” Before the meeting, make a preliminary list of assets and their estimated values. You`ll need accurate values later, but this will help the lawyer know if an estate tax return needs to be filed (due no later than nine months after the settlor`s death). If there is a surviving spouse or the trust has a tax planning provision, the lawyer may need to do the tax planning immediately. The trust may also require a tax identification number. A will, also called a will, is a legally enforceable document that describes how your affairs should be handled after your death and the property distributed.
This is an important part of estate planning. The executor is responsible for carrying out the wishes of a deceased loved one. If someone has appointed you as executor, you need to learn more about your role, including ensuring that their assets are distributed to beneficiaries. Ask the doctor to document the disability as prescribed in the trust deed. Banks and others may ask to see this and a trust certificate before allowing you to do business as a co-trustee or successor trustee. Friends/Family – This is a common way, but it also has the potential for family drama and even resentment. However, if you have a friend or family member you trust, the peace of mind this option offers may be worth it. A loved one will have the obvious advantage of knowing and understanding your family dynamics. Make sure he or she is ready to take on the task. Apply for disability benefits through the constituent`s employer, social security, private insurance and veterans services. Inform the bank and other professionals that you are now that person`s fiduciary. Build a team of professionals (lawyer, accountant, banker, insurance company and financial advisor) to help you.
Be sure to consult them before selling assets. If you have minor children at home, it is important to have a will that determines the guardianship of your children. If no guardian is appointed at the time of death, your surviving family will need to seek the assistance of an estate court to appoint a guardian for your children. The designated person may not be the one you would like your children to entrust. You want to familiarize yourself with the grantor`s insurance (medical and long-term care, if applicable) and understand the benefits and limitations. Assuming that insurance covers a particular procedure or installation could be a costly mistake. It is important to appoint an alternative for both positions in case your first choice is not available. Before choosing someone as an executor or trustee, it`s a good idea to talk to them and ask if it`s a responsibility they`re happy to take on. The provision of estate administration services is a key objective of the lawyers at Surprenant & Beneski, PC. Whether someone has appointed you as estate administrator, trustee or guardian, you are not alone.
Our lawyers have helped lead many clients in their roles. Executors, trustees, and guardians must comply with the requirements of Massachusetts law. Contact our law firm today to arrange your initial consultation and learn how we can help you through the estate management process. Seek legal advice when making a will. A will can be effective in a transfer of estate and other post-death legal proceedings, but there are drawbacks you should be aware of. Your estate, for example, is part of the public record and everything that remains through a will must go through probate court. In addition, probate lawyers can be expensive and cannot be avoided except in California and Wisconsin. By understanding the differences between executors and trustees, you can make an informed decision when choosing who manages and distributes your assets.
When planning income tax, it should be noted that the estate or trust and its beneficiaries may not be in the same income tax brackets. Thus, the timing of some distributions can save money for everyone involved. Caution should also be exercised as trusts and estates are subject to different rules, which can be quite complex and can reach the highest tax rates at very low income levels. Some tax filers and accountants specialize in preparing such fiduciary tax returns and can be very helpful. They are familiar with filing deadlines, can determine whether the estate or trust should pay estimated taxes on a quarterly basis, and can help you plan distributions or other measures to reduce tax costs. What is a trustee? What are the duties of the trustee? Do I need a trustee in my will? We answer these questions and more in our beginner`s guide. A successor trustee is appointed as the second online trustee to serve as a trustee. Most often, the person who establishes the trust is a trustee until they are unable to work or die. At that time, the successor trustee intervenes…