What can I pre-do as Executor to make things easy?

[4TimeAway]

My sad story was a hoarder relative that died during COVID.

Insane, still have dreams of the "clean bathroom" when I came back to check on the house and it was evident rats from the sewer were living in the house. Somehow that was worse than having to shovel fecal material or the 6, yes that many, 40 cubic yard roll offs.

She was too smart by half and messed up nearly everything. It was terrible.

All I had to do was try and grit my teeth for a few days. I fell the worst for the family members who had to struggle through the financial chaos.

Please don't leave a mess, especially a financial one!

 

[Talent312]

Sadly, some people have no sense when it comes to estate planning...

There's a widow who wanted her grown + married kids to come home and work the family farm like they did when they were young and lived at home. She put the farm in trust for whichever of them chose to live on the land and produce an income from it, rather than simply dividing it between them.

Then there's two sisters who inherited a large tract. When they divided the property, one sister got the house, but other got a section with the driveway to the street. After a falling out, the sister with the driveway put locked gate across it, forcing the one with the house to build a new driveway.

 

[joestein]

My sad story was a hoarder relative that died during COVID.

Insane, still have dreams of the "clean bathroom" when I came back to check on the house and it was evident rats from the sewer were living in the house. Somehow that was worse than having to shovel fecal material or the 6, yes that many, 40 cubic yard roll offs.

She was too smart by half and messed up nearly everything. It was terrible.

All I had to do was try and grit my teeth for a few days. I fell the worst for the family members who had to struggle through the financial chaos.

Please don't leave a mess, especially a financial one!

I had a friend who was left a home that owned by a hoarder. The hoarder had no family, but was close to my friend and his family who were her neighbors when he was growing up.

They spent weeks cleaning it up, eventually they found a pile of shoe boxes - each one filled with bundles of cash. It turned out to be over $500K when all was said and done. That is the kind of hoarder I would like to clean up afterwards.

 

[4TimeAway]

I had a friend who was left a home that owned by a hoarder. The hoarder had no family, but was close to my friend and his family who were her neighbors when he was growing up.

They spent weeks cleaning it up, eventually they found a pile of shoe boxes - each one filled with bundles of cash. It turned out to be over $500K when all was said and done. That is the kind of hoarder I would like to clean up afterwards.

It wasn't that kind of hoarded. Damn.

 

[rapmarks]

What I have been working on is consolidating my finances since my husband died. I cashed in savings bonds, moved brokerage accounts, and tried to simplify as much as possible. That is what I recommend to you Faith. There are so many strings that need to be followed to close up someone’s affairs.

 

[GetawaysRus]

Here's a question. Are those of you serving as executor paying yourselves? There's a fair bit of time, effort, and responsibility involved, so are you compensated for that?

The estate attorney I'm working with brought this up when we were preparing my mom's will. He advised that I track my hours and out-of-pocket expenses, then compensate myself at an hourly rate and reimburse any expenses.

But that of course will raise another question. What's fair and reasonable compensation for an executor?

 

[clifffaith]

I don’t plan to take any compensation. However if my sister decides she won’t(entitled to house)/can’t (she claims mental illness when it suits her) that would change when it sucks up my time to dislodge her. The “million dollar” house is the main asset in the estate and must be sold to split estate 50/50. Aside from the even split, she can’t be left in the house because she doesn’t have funds to pay for taxes and upkeep, and it would quickly turn in to a hoarding situation, complete with cats. It is also against my mother’s wishes that she be allowed to stay there. If the investment accounts equaled the value of the house it would be tempting to leave her there, but that truly wouldn’t do her or the neighbors any favor.

 

[pedro47]

Pray, everything is in writing.

 

[pedro47]

Here's a question. Are those of you serving as executor paying yourselves? There's a fair bit of time, effort, and responsibility involved, so are you compensated for that?

The estate attorney I'm working with brought this up when we were preparing my mom's will. He advised that I track my hours and out-of-pocket expenses, then compensate myself at an hourly rate and reimburse any expenses.

But that of course will raise another question. What's fair and reasonable compensation for an executor?

The most busy time IMHO is tax time, filing federal and state taxes. You must account for ever check written and the dollar amount must be correct. IMHO

 

[callwill]

The most busy time IMHO is tax time, filing federal and state taxes. You must account for ever check written and the dollar amount must be correct. IMHO

ugh!

 

[artringwald]

Over the years, I attended several free seminars held by estate attorneys. They gave good advice and weren't pushy. After I retired, DW went to one with me, and we signed up for him to do an estate plan for us. We told him how we wanted to distribute the money to our heirs, and he created a trust for us. He suggested that we keep the original in a fireproof safe in our basement and let the kids know it was there. It can be a big hassle to get anything out of a safe deposit box. My MIL left her original will with her lawyer, and he died before she did. When she passed, it was a big deal trying to find the will.

When my mom passed, she had a trust that took care of distributing the assets. For the contents of the house, the four of us hired an appraiser to go through and put a $ amount on every item that might be of value. We took turns picking what we wanted from the list. Those that picked more valuable items, got less from the estate. For the jewelry, we piled it all in the center of the table. We took turns picking what we wanted. There wasn't much of value left in the house, so the real estate agent recommended a house cleaner to dispose of all the things we didn't want. My brother was appointed executor. We insisted that he pay himself for the time he spent, but he only would take reimbursement for the travel expenses.

I wish all could have an estate settled as smoothly as ours.

 

[joestein]

I don’t plan to take any compensation. However if my sister decides she won’t(entitled to house)/can’t (she claims mental illness when it suits her) that would change when it sucks up my time to dislodge her. The “million dollar” house is the main asset in the estate and must be sold to split estate 50/50. Aside from the even split, she can’t be left in the house because she doesn’t have funds to pay for taxes and upkeep, and it would quickly turn in to a hoarding situation, complete with cats. It is also against my mother’s wishes that she be allowed to stay there. If the investment accounts equaled the value of the house it would be tempting to leave her there, but that truly wouldn’t do her or the neighbors any favor.

I never took a fee when my Mom died, but I did make the estate pay for my travel to make arrangements and attend funeral. I bought a first class ticket as it wasnt that much more than coach at the last minute and I didn't want to have to deal with anybody next to me.

My brother complained about it and I told him that I could take a 10% fee off the top instead. That shut him up. He was actually a real asshole during the whole process, and we didn't speak for a few years. While we put it behind us, our relationship is not particularly good. We speak a few times a year at most and I haven't seen him in 7 years or so. So this stuff can and does happen.

 

[rapmarks]

Here's a question. Are those of you serving as executor paying yourselves? There's a fair bit of time, effort, and responsibility involved, so are you compensated for that?

The estate attorney I'm working with brought this up when we were preparing my mom's will. He advised that I track my hours and out-of-pocket expenses, then compensate myself at an hourly rate and reimburse any expenses.

But that of course will raise another question. What's fair and reasonable compensation for an executor?

No. I settled three estates and did not take compensation

 

[sue1947]

One more thought that probably doesn't apply to the OP, but worth thinking about:
Check your state to see if TOD; transfer on death is an option for the home. A little bit of lawyer's time to prepare the deed and the transfer is easy and outside of probate. Add in pay on death bank accounts and it is very clear who is to get what. When I looked into it for my mother, it wasn't available in all states so you would need to check.

 

[PrairieGirl]

One more thought that probably doesn't apply to the OP, but worth thinking about:
Check your state to see if TOD; transfer on death is an option for the home. A little bit of lawyer's time to prepare the deed and the transfer is easy and outside of probate. Add in pay on death bank accounts and it is very clear who is to get what. When I looked into it for my mother, it wasn't available in all states so you would need to check.

Beneficiary deeds are only available in a limited number of states, but I know for sure that Arizona is one of them. I own a home there and created a beneficiary deed to my brother so that it will pass outside of my estate. AZ also recognizes POD designations on bank accounts. There are many states where you can add a POD. Those funds will also transfer outside of the estate.

I was very fortunate when my mum passed. She had everything in a living trust with my brother and me listed as successor trustees. He totally trusted me to take care of it and split everything 50/50, so he renounced and I did everything with just my signature. Part of the trust documents was a listing of assets and my mother (a fastidious bookkeeper) kept that schedule up to date. I had every account number, location (and often even who her account manager was there and their phone number!) listed all in one spot. She also left a list of certain personal property items that she wanted to go to various other individuals. I had it VERY easy compared to most.

It seems odd that the bank gave her such a run-around. This account you want signing authority on is currently in a trust? That is the only reason they would need to review any trust documents. Do you have a copy of the trust documents? If not, and your mother is agreeable, I would sugest that you set up a meeting with the attorney who prepared the trust and have them explain exactly how it is set up and advise you on what steps you can take NOW to make things easier down the road.

 

[rapmarks]

The most busy time IMHO is tax time, filing federal and state taxes. You must account for ever check written and the dollar amount must be correct. IMHO

I don’t quite understand this, why do you have to account for every check written on your taxesZ?

 

[Brett]

Here's a question. Are those of you serving as executor paying yourselves? There's a fair bit of time, effort, and responsibility involved, so are you compensated for that?

The estate attorney I'm working with brought this up when we were preparing my mom's will. He advised that I track my hours and out-of-pocket expenses, then compensate myself at an hourly rate and reimburse any expenses.

But that of course will raise another question. What's fair and reasonable compensation for an executor?

I didn't get paid as executor for my parent's estate but I was a primary beneficiary.

 

[Icc5]

Here's a question. Are those of you serving as executor paying yourselves? There's a fair bit of time, effort, and responsibility involved, so are you compensated for that?

The estate attorney I'm working with brought this up when we were preparing my mom's will. He advised that I track my hours and out-of-pocket expenses, then compensate myself at an hourly rate and reimburse any expenses.

But that of course will raise another question. What's fair and reasonable compensation for an executor?

The 1st time as Co executor along with my oldest brother we took the lowest amount suggested by our lawyer. I did a ton of work both in time and driving. There were 8 people I had to constantly communicate with along with the lawyer. I also had to deal with an unhappy uncle that was promised things 25 years earlier and he became a real asshole to deal with. After taking his half my brother later said it should of all gone to me because he did nothing except sign a few papers. The worst part is he was retired and I had a job. He was also single and I was married with 2 young children. My brother was afraid to do anything. Probably why it was so hard when he passed because his finances were a mess to deal with.
I didn't accept a fee on the 2nd estate because it was all immediate family and I felt some of them could use the extra couple thousand dollars they received instead of it all going to me and then me giving to the taxman. It made me feel good that I could help the others and so much trust was in me.
Bart

 

[rapmarks]

The 1st time as Co executor along with my oldest brother we took the lowest amount suggested by our lawyer. I did a ton of work both in time and driving. There were 8 people I had to constantly communicate with along with the lawyer. I also had to deal with an unhappy uncle that was promised things 25 years earlier and he became a real asshole to deal with. After taking his half my brother later said it should of all gone to me because he did nothing except sign a few papers. The worst part is he was retired and I had a job. He was also single and I was married with 2 young children. My brother was afraid to do anything. Probably why it was so hard when he passed because his finances were a mess to deal with.
I didn't accept a fee on the 2nd estate because it was all immediate family and I felt some of them could use the extra couple thousand dollars they received instead of it all going to me and then me giving to the taxman. It made me feel good that I could help the others and so much trust was in me.
Bart

Where do you claim it on your tax returnA?

 

[Icc5]

Where do you claim it on your tax returnA?

My tax person handled it so I'm not sure.

 

[Brett]

Where do you claim it on your tax returnA?

a little bit of googling shows:
"The income (less expenses) received as compensation as a fiduciary or executor goes under the heading “other income” on Line 21 on Form 1040"

(but consult a tax professional)

 

[4TimeAway]

Here's a question. Are those of you serving as executor paying yourselves? There's a fair bit of time, effort, and responsibility involved, so are you compensated for that?

The estate attorney I'm working with brought this up when we were preparing my mom's will. He advised that I track my hours and out-of-pocket expenses, then compensate myself at an hourly rate and reimburse any expenses.

But that of course will raise another question. What's fair and reasonable compensation for an executor?

You can't work for free, but you don't have to take the money. Somehow as you muddle through the terrible process, you'll find a pace that works and opefully everyone will go along to get along.

I would take a look at what the attorney would charge to "handle it all." After you've regained consciousness, take a rate a lot less than that. I used less than half my billing rate for work, I think I used $50 or $75, but it was to that people would not waste my time. Alot of times people have a checking account that they name the person handling the process as beneficary on (or as a co-owner) it automaitclly transfers. Using this money may not necessitate tax filings, but please consult a competent attorney and accountant. Also, please don't have it be 90% of the estate.

Do this while the person is mentally competent. It is incredible how quickly people can decline or how life can change in an instant. When the loved on is on life support, even if its "just oxygen" that is not the time to have difficult conversations with family.

Keep it Simple Stupid, get competent advice, update the plan as life changes occur and be proactive. The destruction and trauma of not getting a plan early and revising it as conditions change (children pass away, grandchildren born out of wedlock or in, remarring, etc.) can destroy your intended legacy. Please don't let it happen to your family.

 

[chriske]

I have not read every post above, but I do know trusts, estates and ownerships.
1) talk to an estate attorney
2) Any account that is in trust name will follow what the trust says and will be paid out by the trustee according to the terms.
3) You cannot put your name on an account in the trusts name unless you are a co-trustee
4) If you are not currently a co-trustee you could ask your mom to change the trust to make you co-trustee, or you could ask her to name you as trustee if she becomes incapacitated.
5) You might currently be named trustee upon her death in the trust document. If so, you would do the paying out of the trust assets.
6) As executor of her estate, you would only deal with assets that are not in the trust, unless the trust dumps everything into her estate (not likely)

The ideal for you would be to help her prepare a list of all her assets, where they are and in what name they are listed. Then speak with an attorney, ideally your mom's, but if you have the asset list and a copy of the trust you could go to any estate attorney and ask them to help you understand how the assets will flow.

And no, do not put everything in all the kids names. Use your mom's existing trust and will to make sure everything follows her wishes.

 

[rainbows1957]

So many have said "Get your name on her accounts". That's for the mom to decide who and when someone will be added to her accounts. If she doesn't want to yet, have some respect. I believe there are laws to protect the elderly from being forced into decisions they aren't ready for. Perhaps she would consider signing a durable Power of Attorney if she doesn't want to add names to her accounts. That would allow you to write checks if she is disabled. Ask her opinion. Could be the bank is trying to protect her, in their view. Enjoy her last years. Appreciate her and respect her.

 

[Sandi Bo]

Ya'll are making me feel a little guilty... I did (and continue) to pay myself 1% of the value of my Dad's trust. I am the successor trustee. My accountant takes care of all that - but it is claimed as income (of that I am sure). I sold a few houses and cars, fixed a few after a hurricane, and the trust is written that it provides for the care of my stepmother - and I oversee that. So yeah.... I do pay myself (it is up to my discretion how much).

My Dad went to a great deal of work to put everything he had in a trust. Up until a few months before he passed, things were well taken care of. In the last 4-6 months before his passing he did some, oh shall we say, silly things. He had a brain tumor and was not functioning as well as we thought. He opened several accounts in his name only. He did a few quirky things and I was able to recover, if you will, before he passed. Literally, he was at a point where every question he answered was his birthday (he liked to say it just rolled off his tongue). So before he passed I called banks and credit cards and took care of things. It was nice to close credit cards I knew I'd have to close anyways. I "let him" carry one (that I had closed) so he felt he had something (and I still have it as a souvenir for myself). It's not a recommended path, but because most everything really was taken care of very well, it really wasn't too hard to take care of things.

There were some very nice benefits of the trust. We had to have the houses appraised for fair market value, and that became the cost basis for their sale. Something like that. I see why the rich keep getting richer. I really can't think of a downfall to a trust. I have to say I was slightly annoyed, but got over it, one of his bank accounts was POD. And I don't think it was what he wanted, I suspect it was one of those last month things that he did. When that happens, only the receiver knows, it didn't matter that I was executor and successor trustee, the bank would not give me any information. So had I not known the account ever existed - no trail, so to speak. But I guess that's what POD is for? I'm over it. (My goal was identifying and making sure everything was taken care of).

On a different front. I am the executor for my stepmother's sister. She's my step-aunt, I guess, but seems funny to call her as such (my Dad did not marry my stepmother until 6 weeks before he passed). I offered to be the step-aunt's executor because she has no one, and she was going to move to another state so her deceased husband's niece could care for her estate, etc. It made no sense - she doesn't have much, but has a strong community of friends and support. She lives in an over 50 apartment complex and is also active in her church. They do holiday dinners and bingo, etc. All self managed by the residents. It's very nice, she knows everyone she passes by - and they'll say 'we missed you at yoga this morning', etc. I have no doubt if she moved out of state, she would no longer drive, the niece lives out of town, so wouldn't even be close. So she's staying put and I'll take care of things for her. BUT, as we reviewed things, I realized she had left no money for her burial, etc. So my request of her was to leave me enough money to bury her and take care of things - the rest of her estate will go to her husband's nieces. I wonder how many people do that (don't leave money for their own burial). And I hope I don't run into any issues with these nieces (whom I've never met). BTW - in her closet are the ashes of her deceased husband, nephew, a cousin, and some dogs and cats. The cousin left her no money for the burial of her or her animals. So I hope she leaves me enough money to take care of them all!