the executor's guide, settling a loved one's estate or trust 3rd (2008)

[...]... beneficiary ends up with an unfairly large share of assets Payment for Serving as an Executor or Trustee You are probably entitled (under the terms of the will or trust, or by state law) to reasonable compensation for your work as an executor or trustee Many family members, however, feel uncomfortable accepting money and don’t take a fee There’s also a practical reason to decline a fee: It’s taxable income If... policies, and so on are accessible to the executor 6 If he or she owns (or might, after the death of a spouse) assets worth more than $2 million, investigate ways to avoid federal estate tax 7 Settle any lawsuits or major disputes 8 If the estate will contain hard-to-sell assets such as complicated investments or a family business, make a clear plan for the executor to follow 9 Get a handle on debts 1 0 Head... winding up a loved one’s affairs is unexpectedly therapeutic There is satisfaction in knowing that you’re doing what the deceased person wanted And whether or not it’s true, many of us feel that we didn’t do quite enough for a person who has died, and that now it’s too late Maybe not A Compromise for Large Estates For large estates—worth more than about $1 million—that face state or federal estate tax issues,... means that more and more of their relatives are finding themselves tapped for the job of trustee Some trusts let people leave their property but avoid probate; others also reduce or avoid estate taxes Some trusts are created in wills, as a way to manage property if left to children or other beneficiaries who need guidance The document that creates the trust names the person to take over when the trust- maker... review the fee.) Some states, however, let executors claim a percentage of the value of the estate Still a few others give executors a percentage of the money that flows in and out of the estate, to try to reflect the amount of work the executor must do managing assets Dealing With Emotions— Yours and Your Relatives’ Unless you’re a professional, handling an estate or trust is much more than just a legal... administrator,” to take over Making the Job Manageable A key to how easy or difficult it will be to serve as executor or trustee is the amount of preparation done beforehand If you have the chance, getting the will-maker to do some planning can smooth out what would otherwise be a bumpy ride Three areas deserve particular attention: • Organization Getting organized will make it easier for everybody, now and... Situation Every estate and every family situation is unique The difficulty of serving as executor or trustee depends on many factors: the size of the estate, your state’s laws, and the complexity of the deceased person’s financial affairs, to name a few Two personal factors also loom large: how smoothly family members get along and how well-organized the deceased person was Complexity of the Job the. .. by a dishonest person, the law requires executors and trustees to act with the highest ethical standards and to follow a set of well-established rules and procedures For your efforts, you are entitled to reasonable financial compensation But your true reward must be the satisfaction of performing an important task well An executor has what’s called a “fiduciary duty.” It means that you must always act... such as selling assets or changing investments ❒ Collect money owed to the estate for example, final wages or insurance benefits ❒ Pay bills owed by the estate ❒ File final income tax returns for the deceased person ❒ If the estate was large, file estate tax returns ❒ Distribute the assets 8  |  the executor’s guide What Trustees Do More and more people are using living trusts as substitutes for wills,... size and complexity of the estate count for a lot If the person will probably leave property of modest value, with a few major assets and no estate tax issues, accepting the executor’s or trustee’s job may not be such a big deal If you’ve already been helping manage someone’s finances, handling things after death may be a natural extension of your duties But if you’re unfamiliar with the person’s affairs, . personal use. For information on bulk purchases or corporate premium sales, please contact the Special Sales Department. For academic sales or textbook adoptions, ask for Academic Sales. Call 800-955-4775. plans. Liza Weiman Hanks, an estate planning attorney of FamilyWorks law practice in San Jose, California. Her energy, knowledge, and encouragement helped me run this marathon. Virginia Palmer, an estate. Julia Nissley, author of How to Probate an Estate in California. I’ve had the pleasure of working with Julia since I came to Nolo many years ago, and her wonderful book was an invaluable help. Twila