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5% of the first $100,000.00
4% of the next $200,000.00
3% of the next $700,000.00
2.5% of the next $4,000,000.00
2% of all monies in excess of $5,000,000.00
As you can see, even a modest estate will yield a substantial commission for the nominated executor. Your executor will be in charge of collecting your assets, discharging your debts, and distributing your assets as per the terms of your will. As such, the job is very important, and should be given to someone who is responsible, trustworthy, and meticulous in their record keeping.
If you have been nominated as the executor of a friend or family member’s estate, be mindful in your duties, and keep excellent records of all expenditures made on behalf of the estate. By doing so, you will honor the legacy of your loved one, assist their heirs in their time of need, and protect yourself from potential liability.
Trusts
There are dozens of varieties of trusts, each of which can be used to accomplish different goals. For most circumstances, however, your
attorneys will recommend one (or several) of three variants of trusts - the basic revocable living trust, the irrevocable “Medicaid” trust. Each trust serves its own specific purpose - generally, irrevocable trusts are for asset protection and estate tax purposes, where revocable trusts are considered “will substitutes”.
Revocable Living Trusts
A revocable living trust (“RLT”) is a so-called “will substitute” - it is freely revocable during your lifetime, and you (and your spouse, if a joint trust) may act as trustee(s) of the trust. RLTs have many advantages - they simplify estate administration, avoid the necessity of probate, and serve special purposes for those who own property in multiple states. An RLT, like any trust created during the grantor’s lifetime, is its own legal person. By setting up an RLT, you will effectively begin administering your own estate during your lifetime. This means that when you pass away, your successor trustees will step immediately into your shoes, without having to go through the length process of probate. Administratively, the only thing for your family to do, will be to have your successor
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