trustee or executor?

[tkh]

I live in Texas. My husband and I are getting ready to have a will prepared. Someone told me it's better to have a trustee than an executor because the government or State automatically gets 40% if you have an executor. Is this true?

 

[ALawyer]

Whoever told you that is either stupid or evil, if not both.

IF your estate is more than $1 million, and you name someone other than your spouse as beneficiary and die in 2002, there would be an estate tax, and that is hefty. BUT will or trust, executor or trustee, it doesn't change things.

You need to speak to a lawyer who knows what s/he is doing and get some real estate planning.

 

[tkh]

trustee

I'm confused! If I appoint my husband as my trustee. I die and my estate value is less than $675,000, I don't have to worry about estate tax or gift tax. Right?

 

[advisor10]

12-7-2001

Yes, you are right about being exempt from estate tax and gift tax.

It's hard to say whether or not it would be "better" to have a trustee--that is a blanket statement that can't cover all situations.

You have to compute the figures on how much state taxes (if any) would be due and what the value of the estate is in both situations (in the trust and without a trust) to compare the figures to see how you come out the best. It is possible to have a will AND a trust, but most people put all assets in the trust for purposes of privacy to avoid probate (probate is public record, whereas trusts are kept private and confidential). If you can't compute everything yourself, an accountant or estate planning professional would be glad to assist you.

SINCERELY,

[email protected]

 

[tkh]

Thank you for your advise. I guess the person that told me that was not stupid or evil!