1. I’m good at my job so I’m the best choice to handle our parent’s estates:
People tend to choose Trustees who are smart, capable and resourceful, understandably. But just because one is a very capable executive or doctor, does not mean they will make the best Trustee. Trustee work is unique and has its own language, one they don’t teach in medical school or business school, for example. So, whoever is acting as Trustee will need to learn the business of estate administration, all while grieving the loss of a loved one and handling their day-to-day obligations. Choosing a trusted fiduciary who does Trustee work on a regular basis is ideal and will save time and money.
2. I take care of our aging parents so I should be their Trustee when they die:
Being a caregiver is definitely one of the most difficult jobs on the planet. And by the end of the caregiving experience, the caregiver is typically burnt out, exhausted and over it. Taking on an addition 400-500 hour job when their parents pass away is likely the last thing the caregiver needs or wants.
3. I’m good with money, I will make sure everything gets split fairly:
Sometimes people have the misconception that if they are the Trustee, they get to decide what happens with all the assets. Not true. The trust decides what happens to the assets. In a perfect world, the trust lays out exactly which assets should go where, and beneficiary designations determine the assets outside of the trust. It is not up to the Trustee to be the decision-maker, it’s up to the Trustee to execute the wishes within the trust.
4. Trust Administration is no big deal, I can handle it:
The average trust administration is said to take between 400-500 hours of a Trustee’s time, this is not including any attorney, CPA, financial advisor or consultant’s time. There are countless tasks that need to be taken and many of these tasks include sitting on hold for an hour with the cable company, the IRS, creditors, medical providers and so on. Houses need to be cleaned out, maintained and sold, estate sales need to be had, excess personal property needs to be donated, taxes need to be filed, assets need to be identified and transferred, and so much more. This job is not for the faint of heart.
5. My family gets along, we won’t need a third party to help when my parents pass away:
There are families where everybody gets along, nobody wants their parents’ stuff, and everybody cooperates to administer the trust as quickly as possible so that everybody can get back to grieving and living their lives, but that is a rare occasion. More often than not, everybody except one sibling gets along and is on the same page, and that one sibling makes life difficult for everybody. Whether it is drug addiction, mental illness or just plain greed, it is very often the case that somebody is rocking the boat, making life for the Trustee much more stressful than it needs to be.
Heirloom Consulting is an unbiased third-party who steps in to help the Trustee navigate the extensive list of tasks placed upon them. We take the pressure off the Trustee so that they have space to grieve while still overseeing the estate administration. We are the one point of contact for the Trustee and their estate team, leaving time and space to breathe, knowing that everything is being taken care of in the most efficient manner.
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