Page 31 - Butler Hughes FH
P. 31
3% of the next $700,000.00 begin administering your own estate
2.5% of the next $4,000,000.00 during your lifetime. This means that when
2% of all monies in excess of $5,000,000.00 you pass away, your successor trustees will
step immediately into your shoes, without
As you can see, even a modest estate having to go through the length process
will yield a substantial commission for the of probate. Administratively, the only
nominated executor. Your executor will thing for your family to do, will be to have
be in charge of collecting your assets, your successor trustee(s) begin managing
discharging your debts, and distributing the trust’s affairs, and disposing of the
your assets as per the terms of your trust assets as per your directions.
will. As such, the job is very important,
and should be given to someone who is A common circumstance that is
responsible, trustworthy, and meticulous encountered in New York is the elderly
in their record keeping. decedent who owns both their long
time New York residence, and a Florida
If you have been nominated as the condominium for their retirement years.
executor of a friend or family member’s In these circumstances, without an RLT,
estate, be mindful in your duties, and keep the family of the decedent will have to
excellent records of all expenditures made probate the decedent’s will (or, in the
on behalf of the estate. By doing so, you absence of a will, bring an administration
will honor the legacy of your loved one, proceeding) in both New York and Florida.
assist their heirs in their time of need, and After accounting for filing fees, legal fees,
protect yourself from potential liability. service of process, and the potential
necessity for travel, this can more than
Trusts double the cost of administering the
There are dozens of varieties of trusts, estate. By utilizing a RLT, you can avoid
each of which can be used to accomplish these problems, save money and time for
different goals. For most circumstances, your heirs, and leave a lasting legacy for
however, your attorneys will recommend your family. Almost without exception, we
one (or several) of three variants of trusts advise that our clients who own real estate
- the basic revocable living trust, the or other property in multiple states utilize
irrevocable “Medicaid” trust. Each trust an RLT for estate planning purposes.
serves its own specific purpose - generally,
irrevocable trusts are for asset protection
and estate tax purposes, where revocable Irrevocable “Medicaid” Trusts
trusts are considered “will substitutes”. The irrevocable “Medicaid” trust is a
special type of trust utilized to protect
your assets - and in some cases, make
Revocable Living Trusts you eligible for government benefits - in
A revocable living trust (“RLT”) is a so- the event that you require certain forms
called “will substitute” - it is freely of care, while safeguarding your assets for
revocable during your lifetime, and you the benefit of your heirs.
(and your spouse, if a joint trust) may
act as trustee(s) of the trust. RLTs have In New York State, the average cost of a
many advantages - they simplify estate nursing home is approaching $10,000.00
administration, avoid the necessity of per month at the time of writing. In
probate, and serve special purposes for the downstate region, the cost of such
those who own property in multiple states. care already exceeds that number by
An RLT, like any trust created during the approximately 20%. As such, the cost of
grantor’s lifetime, is its own legal person. care quickly diminish your hard earned
By setting up an RLT, you will effectively savings, and prevent your children from
Butler-Hughes Funeral Home, Inc. - Page 31
