It is important that everyone has a will so that you can name the executor over your estate. You need to ask the person you want to name whether they wish to serve. The role of executor is very important. They must make sure the distribution of your estate is done in accordance with your wishes and the requirements under the law. There are time frames that have to be met; forms that have to be filed; taxes that have to be paid; and, decision that you may leave up to the executor in your will, ie. who gets what household items, etc.
If anyone feels the executor is not performing, they can bring a legal action, ie. sue the executor. So, your executor may have to defend their actions before the court. Everyone should understand the potential risks associated with being an executor. The person making the will should pick wisely and the person agreeing to serve should understand their fiduciary role.
Contact us if you are serving as an executor. We can help you avoid litigation.
Showing posts with label fiduciary. Show all posts
Showing posts with label fiduciary. Show all posts
Thursday, September 16, 2010
Friday, January 22, 2010
Selection of Trustee - Final Note
The last couple of days I have discussed the importance of making the correct selection of your trustee. A trustee serves in a legal capacity as your fiduciary. There are laws specific to the role and responsibility of fiduciaries and laws applicable to trust management. Today, we will address the Pros and Cons of selecting a bank or financial institution as your trustee.
PROS:
(1) A financial institution has longivity. Unlike individuals, you do not have the issue of incapacity or death.
(2) A lot of time does go into training and education in the specific area of trust and financial management.
(3) Generally, you have more focus attention to one area. There are departments for each area of expertise with individuals trained in that area of focus.
(4) Financial institutions have the resources to deal with complex matters and serve to be the deep pocket if anything should go wrong with trust management.
CONS:
(1) Financial institutions are subject to merger and closure as we have seen over the last 18 months.
(2) The fees charged by financial institutions are of significant concern to many.
(3) You have to have resources at a certain level in the trust for a financial institution to become your trustee.
(4) Beneficiaries can find working with a financial institution to be a little impersonal with specific individuals handling the trust subject to change at any time.
So, for choosing a trustee make sure you do your homework thoroughly. Seek professional guidance in the selection process. Leave your comments here or contact us at http://www.ythlaw.com/
PROS:
(1) A financial institution has longivity. Unlike individuals, you do not have the issue of incapacity or death.
(2) A lot of time does go into training and education in the specific area of trust and financial management.
(3) Generally, you have more focus attention to one area. There are departments for each area of expertise with individuals trained in that area of focus.
(4) Financial institutions have the resources to deal with complex matters and serve to be the deep pocket if anything should go wrong with trust management.
CONS:
(1) Financial institutions are subject to merger and closure as we have seen over the last 18 months.
(2) The fees charged by financial institutions are of significant concern to many.
(3) You have to have resources at a certain level in the trust for a financial institution to become your trustee.
(4) Beneficiaries can find working with a financial institution to be a little impersonal with specific individuals handling the trust subject to change at any time.
So, for choosing a trustee make sure you do your homework thoroughly. Seek professional guidance in the selection process. Leave your comments here or contact us at http://www.ythlaw.com/
Wednesday, January 20, 2010
Selection of Trustee
Last night I attended a seminar on the Selection of Fiduciaries & Advisors. I thought it would be informative to share the important highlights of this meeting over the next few days. Your fiduciaries & advisors generally fall into 3 major categories. They can be individual family members or friends, professional advisors or corporate/institutional advisors.
Today my discussion will center on the selection of family members or close friends as trustees. Any one who serves as a trustee does so in a fiduciary capacity which means the role is govern under the laws pertaining to fiduciaries. What are the pros and cons of selecting family members or close friends as trustees?
PROS:
(1) Generally the fee for the service is nominal or none. Family members are often times beneficiaries under the trust and so therefore would not also charge a fee for managing the trust. Family friends agree to serve to be of assistance and may only expect to get reimburse for expenses incurred on behalf of the trust.
(2) Family members and friends know the beneficiaries and understand the needs. They understand the dynamics of the family relationship and the intent/desire of the person creating the trust.
(3) Knowledge of the trustworthiness of family members or friends is known through experience. The person creating the trust will choose family members or friends who have already proven their loyalty and trustworthiness.
CONS:
(1) Family members or close friends probably will not be familiar with the laws applicable to Trust or Fiduciaries. They are govern by these laws and must become familiar with them so that they are not in violation and subject to fines and penalties.
(2) Sometimes the closeness to the beneficiaries can cause a conflict and make it difficult for the trustee to make the tough/unpopular decisions.
(3) What if the trustee were to become incapacitated or die? This is always a potential issue for longer term trusts with individuals as trustees.
Understanding the pros and cons will help you decide how you might want to proceed with appointing individual trustees. Tomorrow, I will discuss having professional advisors as trustees. Leave your questions or comments here or contact us at http://www.ythlaw.com/
Today my discussion will center on the selection of family members or close friends as trustees. Any one who serves as a trustee does so in a fiduciary capacity which means the role is govern under the laws pertaining to fiduciaries. What are the pros and cons of selecting family members or close friends as trustees?
PROS:
(1) Generally the fee for the service is nominal or none. Family members are often times beneficiaries under the trust and so therefore would not also charge a fee for managing the trust. Family friends agree to serve to be of assistance and may only expect to get reimburse for expenses incurred on behalf of the trust.
(2) Family members and friends know the beneficiaries and understand the needs. They understand the dynamics of the family relationship and the intent/desire of the person creating the trust.
(3) Knowledge of the trustworthiness of family members or friends is known through experience. The person creating the trust will choose family members or friends who have already proven their loyalty and trustworthiness.
CONS:
(1) Family members or close friends probably will not be familiar with the laws applicable to Trust or Fiduciaries. They are govern by these laws and must become familiar with them so that they are not in violation and subject to fines and penalties.
(2) Sometimes the closeness to the beneficiaries can cause a conflict and make it difficult for the trustee to make the tough/unpopular decisions.
(3) What if the trustee were to become incapacitated or die? This is always a potential issue for longer term trusts with individuals as trustees.
Understanding the pros and cons will help you decide how you might want to proceed with appointing individual trustees. Tomorrow, I will discuss having professional advisors as trustees. Leave your questions or comments here or contact us at http://www.ythlaw.com/
Tuesday, April 7, 2009
Mediation
Last week I took a mediation training course. It was very interesting to look at ways to resolve disputes between parties without litigation. This can be especially helpful in Probate Court when addressing will contests, guardianship (though incapacity can not be determined in mediation), inventory and accounting disputes and fiduciary issues. Another growing area for this practice is in Elder law.
Mediation allows me, as a neutral third party, to work with the disputing parties. My role as a trained mediator is to help parties listen to and talk with each other. I help them gain clarity on their options and the possibilities for moving forward. Often in this process, the parties gain a better understanding of each other's point of view. It is not my role to make the decisions for them or even tell them what to do. Nor, do I act as an advocate for either of the parties. In this transformative mediation process, parties if allowed the necessary space can begin to resolve their own conflict and in turn can save themselves and, if an estate is involved, the estate the growing expense of litigation.
I particularly like mediation because it empowers the individual in the decision making process. As the process progresses, in many cases, you can see the shift that all parties make towards reaching an amicable resolution. It is one that they take ownership of because it was not imposed upon them by legal system. If you happen to be in a dispute, consider mediation. I can help you with that choice. Contact my office today.
Mediation allows me, as a neutral third party, to work with the disputing parties. My role as a trained mediator is to help parties listen to and talk with each other. I help them gain clarity on their options and the possibilities for moving forward. Often in this process, the parties gain a better understanding of each other's point of view. It is not my role to make the decisions for them or even tell them what to do. Nor, do I act as an advocate for either of the parties. In this transformative mediation process, parties if allowed the necessary space can begin to resolve their own conflict and in turn can save themselves and, if an estate is involved, the estate the growing expense of litigation.
I particularly like mediation because it empowers the individual in the decision making process. As the process progresses, in many cases, you can see the shift that all parties make towards reaching an amicable resolution. It is one that they take ownership of because it was not imposed upon them by legal system. If you happen to be in a dispute, consider mediation. I can help you with that choice. Contact my office today.
Subscribe to:
Comments (Atom)