Anthony S. Park

Want a professional executor, but prefer an institution such as a bank or trust company? Here’s what to expect.

The application process

Like all other bank interactions, you must complete lots of forms and paperwork. It’s a lot of documentation, it may feel like you’re applying to college all over again.

And just like applying for college, you may feel like you’re applying for acceptance. Banks do not accept all executor nominations, and they have internal committees to decide which estates they will serve.

Bank minimums

The lowest minimum I’ve seen is $1 million liquid assets, and it usually must be invest with the bank. But more usually the minimum will be in the range of $2-5 million, liquid and invested.

Trusts only

Anecdotally, we’re beginning to hear that banks prefer to accept trustee appointments, and not executorship.

Some financial institutions flat-out reject clients who ask them to serve as executor, even when that client has millions invested with them.

Apparently some banks have acknowledged that being an executor is tough work, and perhaps not worth it for them.

Customer (higher) fees

Most states have laws that set the executor’s compensation. But banks will usually ask you to sign a contract with it’s own fee schedule. Higher fees, of course.

Banks have many advantages (“immortality,” private client perks such as fine dining, tickets, etc.), just be aware of what it entails.

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Here are the results of a survey and statistics to illustrate why folks think being an executor is so difficult.

Is being an executor difficult?

The average executor doesn’t think the job is particularly difficult to understand. But, they do think carrying out the role can be difficult.

Source: https://www.statista.com/statistics/281604/difficulty-in-being-an-executor-of-an-estate-among-wealthy-americans/

Based on a survey by Statista, non-professional executors feel the most difficult parts of serving as an executor or trustee of an estate are:

Commitment of time required

Many tasks seem simple, and would be if you were doing them for yourself (closing a bank account, getting financial records, etc.). But many executors realize how difficult those tasks are with an estate.

Insufficient legal or financial knowledge

Yes, you can hire an attorney or CPA to advise on most matters. But what executors really want to know is: what are my chances of getting sued if I make the wrong decision?

Filing tax returns

Executors must get tax clearance, to avoid being haunted by the IRS later. This can frustratingly take months.

Managing disagreement among heirs

This is particularly awkward and stressful if it’s your own family. Thanksgiving gets even more awkward!

How much time does it take to be an executor?

According to a survey by EstateExec.com, the average non-professional executor spends 570 hours to settle an estate.

Source: https://www.estateexec.com/Docs/General_Statistics

How long is 570 hours?

• 71 full workdays
• 14 full work weeks
• 3 1/2 months of work

Make sure you’re ok with this level of disruption to your job or leisure time, before accepting executorship.

How long do estates take to settle?

On average, 16 months. In our experience, 16 months sounds low.

Source: https://www.estateexec.com/Docs/General_Statistics

Also be aware that it’s not a steady stream of work. Rather, there will be bursts of hectic activity, with long gaps of waiting in between.

FREE Copy of “The Solo Ager Estate Plan”

Complete this form to receive your complimentary copy of Anthony’s Amazon best-seller, “The Solo Ager Estate Plan”

Let’s take a look at a real world example of whether a Solo Ager’s estate plan worked towards the end of her life.

Ms.H’s Plan: DIY Will + Professional Executor Background

Ms. H is a solo ager (unmarried, no kids, over 60 years old) who’s been estranged from her closest relatives (siblings and nieces and nephews) for decades.

She made a do-it-yourself will leaving everything to charity. Thankfully, she hired a lawyer to supervise her will signing.

Ms. H named me her professional executor in her will, and over the past 10 years her wishes have remained largely the same.

Recently

Sadly, age has caught up with Ms. H, and she was recently hospitalized for lack of self-care. Her doctors agree they cannot discharge her to live alone anymore, so we’re making arrangements for Ms. H to move into assisted living.

She’s understandably anxious about all this, and even contacted her long-estranged niece and asked her to visit.

What Went Right with Her Plan?

Ms. H avoided a few problems by naming me her professional executor.

First, she won’t have to deal with any “court-appointed strangers,” such as a guardian. Instead, she can turn to me, someone she’s chosen and has a relationship with.

Second, she felt comfortable reaching out to estranged family, without fear they’d try to sneak into her inheritance. Since Ms. H already has a will and an attorney-executor standing by, her niece has focused solely on reconnecting with Ms. H emotional, not financially.

And lastly, Ms. H’s doctors, hospitals, and social worker have all been grateful to have me as a main point of contact for her care.

What Went Wrong with Her Plan?

Her plan does have a couple of weaknesses.

Since an executor steps in after death, I don’t have authority to help Ms. H now. For example, I can’t help make financial arrangements for her to access a better assisted living. She much choose among the options thru Medicare.

Also, if unscrupulous and aggressive family comes out of the woodwork, I have fewer tools to fend them off. We’d have to battle in court, which could waste Ms. H’s time and money, and cause her stress.

Why a Trust Could Have Been Better

If Ms. H had made me trustee, I’d be better to avoid any court-appointed strangers for her. And more ability to upgrade her care, and deter unwanted family, without having to go to court.

FREE Copy of “The Solo Ager Estate Plan”

Complete this form to receive your complimentary copy of Anthony’s Amazon best-seller, “The Solo Ager Estate Plan”

Most NYers know the deal with co-ops: they’s less expensive than condos, but they come with a lot of rules and headaches. Here are 3 real world examples:

1. Last to unlock
2. Quick to Sue
3. Release of lien

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• iTunes: https://apple.co/2XvtoVz
• Google Play: http://bit.ly/2XRWDRK
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• iHeartRadio: https://ihr.fm/2JwhDnV

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Today we’ll share a few recent examples of why folks were so happy and relieved to find me, and name me executor in their will

Today's stories:

1. Don’t want to burden the boyfriend
2. Former co-worker as a last resort
3. Relieving an old friend

==========

READ

Pick up my books on Amazon. Reviews always appreciated!

==========

JOIN

Sign up to my email list for book announcements

==========

WATCH

Subscribe to my YouTube channel

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LISTEN

Subscribe to the “Simple Money Wins” podcast at:

• iTunes: https://apple.co/2XvtoVz
• Google Play: http://bit.ly/2XRWDRK
• Stitcher: http://bit.ly/2Xuct5A
• Spotify: https://spoti.fi/2XMDYa3
• iHeartRadio: https://ihr.fm/2JwhDnV

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What do you do if you need a probate lawyer, but you don’t have the money now? Let’s talk about contingent fee probate.

1. What are contingent fees?
2. Some limitations
3. Will contests
4. Kinship
5. Uncertain assets

==========

READ

Pick up my books on Amazon. Reviews always appreciated!

==========

JOIN

Sign up to my email list for book announcements

==========

WATCH

Subscribe to my YouTube channel

==========

LISTEN

Subscribe to the “Simple Money Wins” podcast at:

• iTunes: https://apple.co/2XvtoVz
• Google Play: http://bit.ly/2XRWDRK
• Stitcher: http://bit.ly/2Xuct5A
• Spotify: https://spoti.fi/2XMDYa3
• iHeartRadio: https://ihr.fm/2JwhDnV

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Since we keep seeing folks who are going the DIY will route, a few more tips on how to make sure that software or will form actually works

Today we’ll discuss:

1. Use local software/forms
2. Keep it simple
3. Hire a lawyer to supervise the signing

==========

READ

Pick up my books on Amazon. Reviews always appreciated!

==========

JOIN

Sign up to my email list for book announcements

==========

WATCH

Subscribe to my YouTube channel

==========

LISTEN

Subscribe to the “Simple Money Wins” podcast at:

• iTunes: https://apple.co/2XvtoVz
• Google Play: http://bit.ly/2XRWDRK
• Stitcher: http://bit.ly/2Xuct5A
• Spotify: https://spoti.fi/2XMDYa3
• iHeartRadio: https://ihr.fm/2JwhDnV

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Talking Solo Agers and Hospice Care with Helen Bauer and Jerry Fenter from the Heart of Hospice podcast.

Helen shares her personal experience helping during a Solo Ager friend's final weeks. And Jerry shares some Solo Ager statistics and what he learned from Solo Ager Facebook groups.

Links: http://www.theheartofhospice.com/

==========

READ

Pick up my books on Amazon. Reviews always appreciated!

==========

JOIN

Sign up to my email list for book announcements

==========

WATCH

Subscribe to my YouTube channel

==========

LISTEN

Subscribe to the “Simple Money Wins” podcast at:

• iTunes: https://apple.co/2XvtoVz
• Google Play: http://bit.ly/2XRWDRK
• Stitcher: http://bit.ly/2Xuct5A
• Spotify: https://spoti.fi/2XMDYa3
• iHeartRadio: https://ihr.fm/2JwhDnV

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