Page 35 - St James FH
P. 35
protect your prospective heirs from fraud, one (or several) of three variants of
misappropriation and waste. Additionally, trusts - the basic revocable living trust,
in the event any prospective heirs of the irrevocable “Medicaid” trust. Each
your estate are disabled, recipients of trust serves its own specific purpose -
government benefits of subsidies, trusts generally, irrevocable trusts are for asset
can provide additional support and protection and estate tax purposes,
improve the lives of your loved ones where revocable trusts are considered
without jeopardizing your beneficiary’s’ “will substitutes”.
entitlement to those benefits
The Executor Revocable Living Trusts
A revocable living trust (“RLT”) is a so-
In New York State, any person over called “will substitute” - it is freely
eighteen years of age and of sound mind revocable during your lifetime, and you
may serve as executor of a decedent’s (and your spouse, if a joint trust) may
estate. The executor is entitled to a act as trustee(s) of the trust. RLTs have
statutory commission, payable on a many advantages - they simplify estate
sliding scale. The scale is as follows: administration, avoid the necessity of
probate, and serve special purposes
5% of the first $100,000.00 for those who own property in multiple
4% of the next $200,000.00 states. An RLT, like any trust created
3% of the next $700,000.00 during the grantor’s lifetime, is its own
2.5% of the next $4,000,000.00 legal person. By setting up an RLT, you
2% of all monies in excess of $5,000,000.00 will effectively begin administering your
own estate during your lifetime. This
As you can see, even a modest estate will means that when you pass away, your
yield a substantial commission for the successor trustees will step immediately
nominated executor. Your executor will into your shoes, without having to go
be in charge of collecting your assets, through the length process of probate.
discharging your debts, and distributing Administratively, the only thing for
your assets as per the terms of your your family to do, will be to have your
will. As such, the job is very important, successor trustee(s) begin managing the
and should be given to someone who is trust’s affairs, and disposing of the trust
responsible, trustworthy, and meticulous assets as per your directions.
in their record keeping.
A common circumstance that is
If you have been nominated as the encountered in New York is the elderly
executor of a friend or family member’s decedent who owns both their long
estate, be mindful in your duties, and time New York residence, and a Florida
keep excellent records of all expenditures condominium for their retirement
made on behalf of the estate. By doing years. In these circumstances, without
so, you will honor the legacy of your an RLT, the family of the decedent will
loved one, assist their heirs in their have to probate the decedent’s will
time of need, and protect yourself from (or, in the absence of a will, bring an
potential liability. administration proceeding) in both New
York and Florida. After accounting for
Trusts filing fees, legal fees, service of process,
There are dozens of varieties of trusts, and the potential necessity for travel,
each of which can be used to accomplish this can more than double the cost of
different goals. For most circumstances, administering the estate. By utilizing a
however, your attorneys will recommend RLT, you can avoid these problems, save
St. James Funeral Home, Inc. - Page 35
