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expect or desire that their surviving mind may serve as executor of a
spouse will inherit their entire estate. decedent’s estate. The executor is
Without a will, however, the property entitled to a statutory commission,
of a decedent will be split 50% to payable on a sliding scale. The scale
the surviving spouse, and 50% to is as follows:
the children who have survived the
deceased spouse. In the event those 5% of the first $100,000.00 of
children are minors, the Surrogate’s 4% of the next $200,000.00
Court will appoint a guardian an item 3% of the next $700,000.00
for the children, and the property will 2.5% of the next $4,000,000.00
be held in trust for the children until 2% of all monies in excess
they reach the age of majority, and $5,000,000.00
the property will then be distributed
to the children. As you can see, even a modest estate
The problems here are two fold - will yield a substantial commission
first, the surviving parent will not for the nominated executor. Your
have access to the funds in a time executor will be in charge of collecting
of uncertain financial circumstances your assets, discharging your debts,
(unless the children give the funds up and distributing your assets as per
upon reaching the age of majority); the terms of your will. As such, the
and second, the children will receive job is very important, and should be
the entirety of such funds immediately given to someone who is responsible,
upon reaching the age of majority. trustworthy, and meticulous in their
Even if the children are adults, in the record keeping.
event there are any issues between
the surviving parent and the children, If you have been nominated as
the children may refuse to waive their the executor of a friend or family
rights to inherit, and thereby deprive member’s estate, be mindful in your
the surviving parent of financial duties, and keep excellent records
support in their hours of greatest of all expenditures made on behalf
need. of the estate. By doing so, you will
Another important purpose of a will honor the legacy of your loved one,
is the ability to create trusts for the assist their heirs in their time of need,
benefit of your loved ones. These and protect yourself from potential
trusts can protect your prospective l i a b i l i t y.
heirs from fraud, misappropriation
and waste. Additionally, in the Tr u s t s
event any prospective heirs of your There are dozens of varieties of
estate are disabled, recipients of trusts, each of which can be used
government benefits of subsidies, to accomplish different goals. For
trusts can provide additional support most circumstances, however, your
and improve the lives of your loved attorneys will recommend one (or
ones without jeopardizing your several) of three variants of trusts -
beneficiary’s’ entitlement to those the basic revocable living trust, the
benefits. irrevocable “Medicaid” trust. Each
trust serves its own specific purpose
The Executor - generally, irrevocable trusts are
for asset protection and estate tax
In New York State, any person over purposes, where revocable trusts are
eighteen years of age and of sound considered “will substitutes”.
Ruland Funeral Home - Page 37
