Page 29 - Example Guide

The problems here are two fold - first, the surviving parent will not have access to the funds in a time of uncertain financial circumstances (unless the children give the funds up upon reaching the age of majority); and second, the children will receive the entirety of such funds immediately upon reaching the age of majority. Even if the children are adults, in the event there are any issues between the surviving parent and the children, the children may refuse to waive their rights to inherit, and thereby deprive the surviving parent of financial support in their hours of greatest need.
Another important purpose of a will is the ability to create trusts for the benefit of your loved ones. These trusts can protect your prospective heirs from fraud, misappropriation and waste. Additionally, in the event any prospective heirs of your estate are disabled, recipients of government benefits of subsidies, trusts can provide additional support and improve the lives of your loved ones without jeopardizing your beneficiary’s’ entitlement to those benefits
The Executor
In New York State, any person over eighteen years of age and of sound mind may serve as executor of a decedent’s estate. The executor is entitled to a statutory commission, payable on a sliding scale. The scale is as follows:
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 trustee(s) begin managing the
M. A. Connell Funeral Home - Page 29