[USER]

Who is the best executor of a trust? I’m asking because someone I know chose the eldest sibling. Now that the parents are both gone, this sibling is charging the trust thousands of dollars to “manage” it and quickly draining it.

The others are spending a fortune in attorney fees to stop this, to no avail.

Couldn’t the same mismanagement and overcharging of trust money happen with an attorney as well?

[Olivia]

I mean it does take a lot of time and effort to manage an estate. A lawyer or other professional would charge too.

Unless it’s completely egregious, fighting in court about the charges is just going to drain it more.

[Lori]

This is one of the hundreds of reasons to hire someone to manage the trust.

Do you know for certain the sibling is “managing” incorrectly? I assume you think they are since “manage” is in quotes.

Depending upon how recent the death was or how many assists the trust manages is can take a lot of time.

[Renee]

Our elder attorney said… The person that carries out your wishes is the best trustee.
Pretty simple

[Stephanie]

My parents have 4 children… originally it was one of the sister’s who lived at home when they choose the executor.

We changed it recently to myself and that sister (she no longer lives at home, but about 4 hours away).

I’m the unmarried one who is sticking around after my dad passed with my partner to support my mom during her tough time. But I’m also already RE.

I’m also one of the sisters who will keep progressing and work through what needs to happen.

I was only nervous about becoming an executor before I travel full-time and internationally, but the lawyer said the few things that would require both our signatures (like selling a house), could be done remotely.

My other 2 sisters, one lives abroad so even though she’s also financially minded, it’s physical distance. Another sister was on the outs with my dad for about a year.

So, it’s really just a who has some of the skills/personality and physical proximity in some cases that can help make a decision.

If something happens before my niece and nephew could get their estate, they’ll have to come of their aunt and I’ll happily help them set up their finances and dole out money with a conscious plan to set them up financially!

[Sandra]

An attorney. NEVER give a relative or friend durable power of attorney or have them as the executor.

[Lori]

Many states have a set fee or percentage. Others say a “reasonable” fee. It’s a lot of work, so it’s legit.

But a trustee must act as a fiduciary of the trust and its beneficiaries.

If they’re not, you can take them to court (or have a lawyer write them a letter) advising them they are breaching their fiduciary duty. Next step is court if they don’t stop.

[Karolina]

This is why it is sooo important to have a very well/easy to execute trust set up…that does not require much hand holdimg with a clear devision of everything.

[Christina]

My oldest sister was the executor and she gets paid for doing the job. Fine with the rest of us beneficiaries because it does take time.

For my own trust, we named a trust administrator but it cost a % of the value of our estate as fees, which will be hefty.

[Nalani]

That’s tricky. Thousands of dollars could be reasonable, being an executor is a lot of work. A lawyer would for sure cost thousands of dollars.

But whether it is reasonable or not, it more easily appears unfair if a beneficiary is receiving this money vs an attorney.

I’d still rather have a beneficiary be the executor but that would depend on the character of one’s family members/beneficiaries.

[Rochelle]

To clarify-The executor is in charge of the estate. A trustee is in charge of the trust. Are the assets in a trust? If so, then they are named trustee.

The trust will state what can and cannot be paid from the trust.

Do they have a copy of the document?

[Chris]

The best person for the executor of a trust is the chosen one. I can see it costing a lot more when everyone starts lawyering up to pull more from it.

[Eden]

If the other siblings are spending a fortune to challenge the executor then the trust is likely also spending a fortune to hire representation for the executor.

[Darci]

Wow….my aunt was the exciter, and my mom helped so she shared the sum with her. But they didn’t take it all.

Thats sad really.

They did hire a lawyer to help with stuff too.

[Natascha]

I picked someone who I felt wouldn’t squander the money from my kids and who had a fiduciary duty as mine.

He happens to be a CPA and is my younger brother.

But his character is really good and I trust he wouldn’t charge exorbitant fees.

[Melissa]

It really depends. The best person is a trustworthy person. I myself do not recommend a lawyer, at least not an individual one.

The reason being the experience of some friends growing up where the lawyer took advantage of an elderly relative to get put on charge of a trust while the relative was still alive and mismanaged properties and funds.

The lawyer was perfectly trusted by the elderly relatives but it was basically impossible to prove that there was mental incapacity or that the lawyer didn’t act in good faith despite the negative outcome of the decisions and all of the money he made as a “manager”…. And good luck suing a lawyer.

Anyway, I recommend a bank or trust company. Within a business and group of officers there is a lot more policies and procedures and a lot less personal decision making.

When I worked in banking we had a trust department that managed a lot of trusts for both wealthy and middle class individuals who didn’t have trustworthy relatives to put in charge.

A friend of mine was a beneficiary of one of those trusts and I worked very well.

Again, professionals cost money but businesses like banks and trust companies will have clearly stated fees up front.

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