Page 29 - M A Connell Funeral 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