OT Estate Planning Questions

I'll try to make this short. Well my parents have recently rolled their estate trust into an Irrevocable trust since our Gov Quinn here in IL has made some changes to the laws surrounding a revocable trust. Because the state of IL is broke.

I have three siblings and we get along. All four of us are Trustees on the trust. The lawyer didn't recommend all four of us as trustees but we assured him that we could get along. An odd number of trustees are better he said. An even number of trustees can end up in a hung jury at the time of decision making. My questions are. How many of you have gone thru settling an estate thru an irrevocable trust? What can a person expect?

Be better with one trustee.

Paul

And two or three lawyers????.....

That's probably what will be involved in this situation.

Wow, lots of Probate questions here lately, does my heart good since I practice in the area.

I also DO NOT RECOMMEND TO MY CLIENTS HAVING MULTIPLE TRUSTEES and if they absolutely insist I prefer an odd number. I also often (depends on facts) prefer a Bank & Trust Company as the Trustee instead of a family member.

What can you expect??????? IT DEPENDS ON THE TERMS OF THE TRUST simple as that, WHAT DOES IT SAY, WHAT ARE THE TERMS, WHAT ARE THE RESPONSIBILITES AND DUTIES OF THE TRUSTEES, WHO DECIDES WHAT.

Ive had to settle a Trust that was wayyyyyyyyyy more complicated and wayyyyyyyyyyy more work, time and expense then a non trust situation. It depends on the Trust AND IF IT WAS KEPT PROPERLY FUNDED.

I hope you can see by now NO LAY OR EVEN PROFESSIONALS CAN ANSWER THIS HERE not having read and understand the Trust and the laws of your state

To get a meaningful answer hire a local professional probate/estate/trust attorney and ONLY AFTER he reads the Trust and researches your states laws can you expect to get an answer that's worth anything.

NOT having read the trust and NOT familiar with your states laws I can render no professional opinion that would do you any good.

You may have an easy time you may have a terrible and expensive time and a major feud, IT DEPENDS ON THE TERMS OF THE TRUST

Best wishes and God Bless

John T Country Lawyer

My wife and I had a revocable living trust before she passed away 3 years ago. It was a second marriage for both of us and we were both retired and both had grown children from previous a marriage, to which we wanted our individule assets to pass to. Upon death a revocable trust becomes an irrevocable trust. We were joint trustee's on each others trust with each of our own children as successor trustees ,one at a time (first,second,third,etc.) This trust worked very well as her assets ( CD's,stocks,accounts,etc.) were distributed to her children equally,and with only real estate left, I passed the trust to her son ,who was first successor trustee. All this was done with the guidance of a trust attorney.

John B: Irrevocable trust only work well if there is a large amount of assets to transfer. Then there usually needs to be these things going on too.

1) The grantor's do not need the assets in anyway after they transfer them. Meaning if it is a farm they will not longer get ANY income from the farm. It goes into the Irrevocable trust then to the beneficiaries.

2) The Trustees are good at financial managing and HONEST!!! The trustees have great discretion in how they handle the trust. I think your parents just hung a boat anchor around their four kids necks. An Irrevocable trust is not a good passive investment. Meaning it takes time to manage it and comply with all the rules.

3) There should always be an odd number of trustees. There will be disagreements. You are all individuals. It is easy to SAY you all get along but once your parents are no longer here you will find you will not be as close as you once where. Also the OUTlaws(non-family spouses) usually cause the issues. Example: Your brother's wife holds more sway with him then you do. She has ZERO commitment to YOU. She will want HER/their share plus a little AND NOW not later. If you deal with a local bank you can make them one of the trustees. This usually works well as the representative from the bank is usually a good money person.

I have been the executor of several estates. The cost of probate is not that high even with multi-million dollar estates. When you figure them on a percentage basis. Estate planners will tie themselves into knots to "save" a few thousand dollars on a million dollar estate. They have to MAKE a reason to exist. The more complicated the better for them and the lawyers you all will be hiring to straighten this all out down the road.

I was appointed trustee for a family friend. My wife had power of attorney over her. Then there was her attorney. Me not being real smart at the time, and up to the legal system in calif, or anywhere any else. The attorney had me sign a paper which made him now a trustee. So there was the two of us. Him being the smart a-- attorney I was over ruled in almost every decision on the lady. The lady wanted to add me in her will. Next thing I knew the attorney wroth both of us in her will. Which was verified by another attorney. All legal. The s--- hit the fan when the attorney called the nursing home, and told them to have her doctor disconnect her pace maker. Then he wanted to move her to a cheaper care center, as she was paying 12,000.00 a month. He was seeing his golden goose slipping away. I got a real attorney, the nursing home turned him in for elder abuse. He almost lost his license, but didn't. So the moral of my story is try to have only one power of attorney, its just cleaner. Stan

Its pitiful how whenever this type of question comes up the vast majority of the replys deal with sneaking conniving kin folks and the varous ways to get the upper hand on one another. In this instance you clearly state that all of your siblings get along well together and yet there still are people who insist it will all change the second the money is on the table. I have been executor of several estates and had zero problems because I followed the deceased persons wishes to a ''T'' because that is what its all about, honoring the deceased persons final wishes and instructions. The trusts that I have been involved with were fairly simple documents and the best part is everything is spelled out. There should be no room for misinterpretation because it is all there in black and white, all thats left is for the involved parties to do the right thing.

JohnT,
Isn't there a trust that keeps lawyers out of the probate process? The guy that sat my trust up in Indiana, said if a lawyer were to get a hold of my estate, without a trust, typically they would charge a fix % on everything. In my case that would be over $150K. I also have investments in the market, that are life insurance policies. When I'm dead, it is divided between my two kids. No probate, no taxes, no lawyers needed. When I'm alive, I manage my trust. I can change it. Spend the money any way I want. Buy or sell any assets. When I'm dead, by son is in charge.

Does this sound right to you, No lawyer, No probate, No taxes? A lawyer did all my paper work for under $1K. I had to pay a little to do the paper work at Recorders.

George