Trustee is deceased

[SamuelBall]

What is the name of your state? Under a Section of the Last Will and Testament, we have a clause in our wills:

"8.01 I hereby appoint my brother, Xxxxxx, to serve as Trustee for any Trust created under this Last Will and Testament."

This Will was deposited to the Baltimore County's, Maryland, office. What do I do in order to change the name of the Trustee, to another brother?

Thanks.

 

[FlyingRon]

You can either prepare a new will with the changes and record that (it supersedes the earlier one) or you can write an amendment called a "codicil" that changes just the trustee information. Either way, you take it and $5 to the register of wills and record that (note that recording is optional, but it has its advantages).

Your lawyer should have made arrangements in the original document for designation of a trustee in the event your brother was deceased or incompetent (and provide for successors). Of course, you still have to be careful that the backups are still available.

 

[Dandy Don]

Is the will you are referring to a pour-over will?

The trust and the will are two different documents that will be administered separately and independently of each other. You can put the clause about the trustee in the will if you choose to, but the preferable route would be to make sure you have put the same wording in the trust document.

 

[TrustUser]

gosh, i simply dont get why anyone would want a will to create a trust ? why not create the trust now, while you are alive ?

 

[FlyingRon]

Because sometimes things don't get titled to the trust (or can't be for some reason). For instance, my major assets (house, investment accounts) are indeed titled to the trust. Some other items are not, whether you call it a "pour over" or just a will, you may wish the probated assets from the will go into a trust rather than being directly distributed to the heirs. A classic example is my son, not only is he rather irresponsible for money, but having been rather severely disabled and a multiple transplant recipient, we don't want to screw him up with a direct inheritance (not that we're planning on leaving any time soon...).

 

[SamuelBall]

Thank you all! Do I really need a trust? My total assets are negligible - I have an academic job. My children have well paying jobs. My spouse has been at home with no source of income. I am not planning on retiring at all (can't afford it with my academic job income).

This is the draft. Do I need a placeholder for the Notary?

CODICIL to the LAST WILL AND TESTAMENT OF BANJEMIN FRANLIN
​

I, BANJEMIN FRANLIN, of Baltimore County, Maryland, being of sound mind, declare that this Codicil to the Last Will and Testament of BANJEMIN FRANLIN is effective on this date, and hereby amends my Last Will and Testament dated Dec. 25, 2007, as follows:

Subsection 8.01, in Section 8. Appointment of Trustee Administration of Trust of my Last Will and Testament is hereby amended to read as follows:

8.01 I hereby appoint, BENJAMIN K FROMLIN, to serve as Trustee for any Trust created under this Last Will and Testament.

In the event that any statement in this Codicil contradicts the terms of my Last Will and Testament dated Dec. 25, 2007, the terms of this Codicil shall control.

In all other respects I reaffirm and republish my Last Will and Testament dated Dec. 25, 2007.

IN WITNESS WHEREOF, I have signed my name to this Codicil to the Last Will and Testament this ____________ of June, 2018.

(signature)
------------------
BANJEMIN FRANLIN





(signature)
------------------
Witness
Address

(signature)
--------------------
Witness
Address

 

[TrustUser]

Because sometimes things don't get titled to the trust (or can't be for some reason). For instance, my major assets (house, investment accounts) are indeed titled to the trust. Some other items are not, whether you call it a "pour over" or just a will, you may wish the probated assets from the will go into a trust rather than being directly distributed to the heirs. A classic example is my son, not only is he rather irresponsible for money, but having been rather severely disabled and a multiple transplant recipient, we don't want to screw him up with a direct inheritance (not that we're planning on leaving any time soon...).

hi ron, i totally understand your situation. however, that has nothing to do with not having a trust. you could do exactly what you want with a trust. remember, trust assets do not necessarily need to be distributed. and in fact, more and more parents are doing exactly that, once they even know that this is an option.

it is one of the biggest advantages to a trust, that still the majority are not aware of.

 

[TrustUser]

hi samuel,

i was not saying that you did or did not need a trust. you are placing that into your will.

my comment was based on the fact that your will may create a trust. i was simply saying that if your will is gonna create a trust, i do not understand why you do not create a trust, yourself ?

that question still remains, for me - LOL

 

[TrustUser]

Because sometimes things don't get titled to the trust (or can't be for some reason). For instance, my major assets (house, investment accounts) are indeed titled to the trust. Some other items are not, whether you call it a "pour over" or just a will, you may wish the probated assets from the will go into a trust rather than being directly distributed to the heirs. A classic example is my son, not only is he rather irresponsible for money, but having been rather severely disabled and a multiple transplant recipient, we don't want to screw him up with a direct inheritance (not that we're planning on leaving any time soon...).

also, in your example, the will is not CREATING the trust

 

[SamuelBall]

hi samuel,

i was not saying that you did or did not need a trust. you are placing that into your will.

my comment was based on the fact that your will may create a trust. i was simply saying that if your will is gonna create a trust, i do not understand why you do not create a trust, yourself ?

that question still remains, for me - LOL

My will has a condition that our assets will be given to a trustee until all my children reach the age of 30. After that, the assets will be given to the children and the trustee will cease to have a role. I assume that my attorney, after having looked at the value of my assets, thought it makes no sense to create a trust where assets have just a marginal value. The assets will certainly not make them rich and might help them pay off some of their debts. Why age 30? I guess, most of us reach some level of financial maturity.

 

[TrustUser]

i suspect that your attorney preferred you get all mixed up in a possible probate system.

i would highly recommend that you create a trust NOW, with all the stipulations you want in it.

so it remains a private document, and the courts and the public system are not involved.

i will repeat EVEN MORE STRONGLY - having a will CREATE A TRUST borders on being idiotic.

title what assets you can to this trust. and then have the remainder of the items name the trust as the beneficiary (such as a life insurance policy), so that all your wealth ends up in the trust. and all your wealth is handled by the trust.

it has nothing to do with how wealthy you are, or are not. if you found a need to create a trust (such that it manages assets for people until they can manage it themselves), then put that in the language of your trust, not in the language of a will.

a trust can and should have all sorts of bells and whistles, when managing assets beyond the death of the grantor. i highly suspect that the will that you have that may create a trust has very few bells and whistles.

you will want to create instructions on how the income of the trust is distributed. you may want to create instructions on what sorts of assets the trust can purchase. in your situation, assets of a lower risk, no doubt.

you also do not ever need to distribute the assets to the beneficiaries, but rather keep the trust going as a source of monthly income. in this way the assets will not be in danger of being attached by creditors, assuming the trust was written with certain stipulations.

many MANY kids NEVER become financially savvy. if you have a kid who is not today, the odds are probably well less than 50% that he ever will be !!

 

[FlyingRon]

I agree with TU on this. It doesn't hurt to still have such language in the will in the event of some unforseen circumstance, but you might as well get the trusts drafted now and make the distributions into them from your will or other trusts as appropriate.

 

[SamuelBall]

Thank you all for the feedback! What are the typical monthly fees that attorneys charge for maintaining a trust?

 

[Litigator22]

First of all you need to understand that this instrument that you "deposited for safe keeping" with the register in Baltimore County, Maryland (pursuant to Section 4-201 of the MD Code) is of no legal consequence or significance until your death and it is admitted to probate as your last will and testament.

In the meantime the document can be withdrawn by the maker or by someone authorized by the maker and revoked by substitution or intentionally destroyed; or it can be amended by a codicil that can likewise be "deposited" with the register.

However, a codicil to the will (other than a holographic) must adhere to the same formalities as that required for the will itself, meaning: - (if not holographic) "(1) In writing, (2) signed by the testator, or by some other person for him, in his presence and by his express direction, and (3) attested and signed by two or more credible witnesses in the presence of the testator."

 

[TrustUser]

hi samuel,

there is no reason for you to have an attorney involved in maintaining your trust. there is nothing to maintain.

you title your assets to your trust, and then proceed to live your life exactly as you had been doing.

your trust really only goes into effect, once you die.

while you are living, the federal govt does not recognize your trust as anything.

your trust will state that everything is subject to the social security number of the grantor, until the death of the grantor (something to that effect)

you may want to hire an attorney or a real estate person to prepare a grant deed that grants the title of real property to the trust

but bank accounts, stocks and bonds, etc. are taken care of by them changing the title

you just provide them with your trust document and sign some papers for them - it is a slam dunk