Have probated will....calls for trusts for heirs

[kmax228]

What is the name of your state?GA
My aunt died in NC. We all live in GA. I am executor. Her will calls for me to set up separate trust accounts for each heir. I can make distributions when they need education expenses or to purchase a home. Ages 22, 20, 19, 18, 11, 10. Amount is about 20k apiece. I researched trusts and it seems an expensive way to go for such a relatively small inheritance. The older ones have already starting drawing money out. Will stipulates I do not have to give an accounting to any court, just to the heirs once a year. There are so many types of trusts out there. Any advice on which kind I should get for them? They get the balance of what is left when they turn 25. I thought about just keeping it all in one account and distributing it as needed. However, the will says to create a separate trust for each child. Your advice would be appreciated.

 

[seniorjudge]

What you are proposing is a recipe for disaster, including jail time for you.

You must do what the will says and what the court in North Carolina says.

A trustee has the highest degree of duty of practically any other role in the civil law. You have no discretion.

You have to manage that money more carefully than you do your own or face severe civil or even criminal penalties.

 

[BlondiePB]

Also PRIOR to dispersing any more money, set up the INDIVIDUAL trust accounts. A bank officer can assist you with this. Do not be surprised if the court requests an inventory of the accounts, regardless of what the will states.

 

[Dandy Don]

Check out a few books about trusts from the library so you can get a basic understanding of what is involved.

It is very easy and advisable to get separate accounts set up, so that any withdrawals and fees can be charged to each account and it is very easy to take care of accounting-wise/statement-wise. Yes, a bank officer can help advise you with this, but sometimes bank management fees on a trust account can be moderately expensive. Before you actually decide where to put the money, also investigate a local brokerage house to inquire whether this money could be simply put into a money market fund or mutual fund account, set up as a trust in each beneficiary's name, where the money could grow in interest and still allowing the concept of withdrawal with a very low fee and no penalty for doing so.

You also need to decide who would be alternate trustee if in fact something happened to you (death or incapacity) where you could no longer serve, and please give full information to the beneficiaries as to the name of the institution that is holding their funds.

For what purpose have the older beneficiaries received their monies? You also need to be finding out what each beneficiaries plans are for college (whether they intend to go or not) so that they can be advised to check other sources for funding (scholarships, grants, etc.) and not just depend on this money to fully fund their college educations.