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Trustee vs. Executor

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K

Ksajb

Guest
What is the name of your state? SC, Trust from MI, Trustee is in CA

Is there a difference between an executor and trustee? My impression is that an executor is listed on a will and the trustee is listed in the trust. This leads me to my next question:

I know an executor is entitled to commissions but is a trustee who is also a beneficiary entitled to a commission?

Thank you!

karen
 


Dandy Don

Senior Member
Yes, a trustee is entitled to a commission but the rate is confidential information known only by trust attorneys. Are you a trustee? You would need to consult with a trust attorney to find out what the rate is.
 
K

Ksajb

Guest
Thanks, Don!

I'm a co-trustee and the trustee isn't sharing a thing, and hasn't done anything re: the trust, yet. If I take over and it costs a day's pay, or any expenses (like acquiring official death certs) then that's all I'd expect. We're hoping our brother isn't expecting much since he hasn't done much.
 

Dandy Don

Senior Member
How much time has passed since the death occurred? If trustee isn't activating the trust within 30 days after the death, then something would seem a bit suspicious unless he can provide a believable, adequate explanation.
 
K

Ksajb

Guest
My mom died 11 months ago. We've been waiting patiently for my brother to fulfill his responsibilities as trustee. We were all together as a group in July and were promised disbursement in several weeks. When the 6 week mark hit, I started inquiring into the status of several of my mom's funds. They weren't even informed of her death and still had her listed as the trustee. There has been no contact with the lawyer who set up the trust, either. In viewing other posts on the board, this behavior doesn't seem unique but we're at a real loss as to an explanation re: the reason for him to be dragging his feet.

On another note, my mom had a 'friend' who forged $20,000 worth of checks (we have proof) and we know that my brother is obligated to attempt to recover that money and there is no action in that area, either.

Don, I do have a question: Generally do people stick with the lawyer who helped set up the trust and is he (the lawyer) obligated to furnish a copy to all of the beneficiaries if he receives a request? We've asked my brother for a copy of the trust months ago and he said he'd furnish one but hasn't.

Thanks, again!
 

Dandy Don

Senior Member
What state did the death occur in?

This is certainly a most unusual and unique situation. I would suspect that he is trying to hide or steal assets without anyone knowing about it, but I may be a bit premature. The fact that he lives in California and perhaps the trust should be executed in Michigan may be causing him insecurity about how to proceed as an out-of-state trustee--he may not even know what to do or where to begin.

Was there a will probated for this estate or were all of the assets put into the trust?

What city and state is the lawyer in who set up the trust?
What type of trust is this?

You need to be seriously consulting with a trust attorney (who lives in the same city/county as the lawyer who drew up the trust) to find out about how you should proceed from here. If brother/trustee won't begin getting the trust processed, then this is a breach of duty and you can get him replaced with an alternate trustee, and your attorney will know the legal means to help you get a copy of the trust from the trustee and/or the lawyer who drew up the trust. The longer you delay, the more time you give brother/trustee time to steal. Something is wrong somewhere and you need an attorney to help you get to the bottom of this!!

DANDY DON IN OKLAHOMA ([email protected])
 
K

Ksajb

Guest
The trust was originated in MI by a lawyer who's practice was not in the same town as my parent's but still in MI. My brother is in CA, I'm in SC, and two other sibs live in TX and WA.

We've begun working with a lawyer friend who lives in MI and he contacted the trust lawyer to request a copy for us. I called to check on the progress (been attempting to get them to give me a copy for a month) and they are still discussing whether or not to send me one. I know I'm listed as 'co-trustee' and all of us are listed as the beneficiaries. All real estate (except for one tiny piece of property) and all investments are included in the trust. We've been working hard on NOT letting this come between our brother and ourselves but are getting a bit 'put out'. I know some of the mutual funds have a death benefit and we lost some money on the markets after my mom's death. It could be even more of a loss if the death benefit isn't retroactive to the date of death as opposed to the date of re-registration.

On the rare occasion we've been able to reach my brother (he has caller id at home and work) he claims he hasn't had time to do anything. We're having a hard time buying the emotional factor, too. He's very comfortable financially and isn't in any hurry to get his inheritance.

Don, I've been talking your ear off but really appreciate the input!
 

Dandy Don

Senior Member
This case gets more interesting the more details you reveal. As a co-trustee, you are automatically entitled to have a copy of the original trust and it is shocking that you haven't been given one. It's time to take off the gloves and stop being nice--it's gotten you nowwhere.

Find out from the trust attorney what steps you need to be taking now to get this trustee replaced and also report the trust lawyers violation of ethics to his state bar association. Find out if the trustee is bonded or not.
 
K

Ksajb

Guest
I've finally made some progress! I spoke with the trust atty today and found out that my brother wasn't even returning his calls. Also discovered that in addition to possibly having lost money due to the death benefit, some companies holding the funds may or may not pay interest on the funds for the past 11 months. The interest may have stopped accruing at the time of death! The few accounts that I have called haven't been notified of my mom's death so no one could possibly have access to them.

We now have two options: Have my brother write a letter of resignation as trustee, or push him further to sign the trustee certificate and mail the appropriate documents. I know there is another option out there which would be to somehow 'overthrow' him but that's extreme and would cost our relationships.

Don, what is an average timeline in an ideal situation? When should my mom's death have been reported? Within 30 days?

The good news is that the trust is in the mail and I have requested the appropriate paperwork so I can be ready to step in. The atty indicated that the disbursement is so simple that I won't even need him to do it.

Now I need to find out how to disburse - into new bank accounts or just have the funds wired into personal accounts that are already existing. Hmmm...
 

Dandy Don

Senior Member
There is no responsiblity to report her death to the asset holders, since it usually takes executors anywhere from a few days to a few months to manage the estate, they have lots of leeway to take care of things.

Anyway, it is the most wonderful news that you will finally be getting a copy of the trust document. I wonder why things have all of a sudden gotten going with this trust???
 
K

Ksajb

Guest
Well, I left a 'put out' message with my brother (your information gave me some courage) and then contacted the lawyer this am. The lawyer just called me to say that my brother has provided him with names and addresses of the beneficiaries, along with SS#'s and is ready to get things moving. The lawyer also provided some other information for me that may or may not be of interest to others:

1. A tax ID is needed to pay any tax in the trust on capital gains - if any. The executor can use his own SS# to avoid the 6 week wait. Most everything in the trust is tax free.

2. The small piece of property in Va. could take up to a year to probate in that state. Guess my parents thought it would have been sold prior to their deaths.

3. We were suppose to have gotten an interim accounting at 28 days of all assets.

4. If all the paperwork is turned in in a timely manner, we could see disbursement within 3 weeks!

5. We'll eventually need a CPA to file a tax return on the trust.

6.. If anyone wants a buy-out on the remaining property in the trust, that generally is taken out of the trust first, then they'd have to find a loan to make up the difference. The lawyer is going to line up an appraiser for the property. Another option would be to get a mortgage and pay whomever wants out for their portion.

7. Annuities continued to earn interest regardless of the date of death, but a life insurance policy/benefit would not have earned the interest over these past 11 months.

I'm excited, can you tell? Thanks, Don. You've been a big help!
 

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