Being a trustee for a friend's estate

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Grahamsdad
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Being a trustee for a friend's estate

Post by Grahamsdad »

A good friend has asked me to be a trustee for his estate. He's in his mid-40's. His bank, attorney, etc. have asked me to sign many documents. So, it looks like I agreed to act as the trustee. My friend is brining me more documents to sign. I know it's all legit, but I feel somewhat odd randomly signing various documents with no clue what I'm signing.

I have no estate planning background. I don't want to hire my own attorney, when I am doing this act as a favor to a friend and for free. Thoughts? Advice? Thanks.
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prudent
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Re: Being a trustee for a friend's estate

Post by prudent »

You're of course free to say no, but you should not need to bear any out-of-pocket costs to serve as executor (I assume that's the role you're referring to). You should absolutely get legal help for performing those duties when the time comes. As executor, you pay for that using funds in the estate as well as any other out-of-pocket costs you incur.

I think you'd want to talk to your friend to go over what is in his will and to get an understanding of the assets that would need to be handled. I don't think you need to have any estate planning background - HIS estate planning documents should lay out the roadmap for you, and all you do is make sure they are followed.

Whether you choose to take a fee for serving as executor (the will may allow this, many do) is up to you.
placeholder
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Re: Being a trustee for a friend's estate

Post by placeholder »

Being named an executor wouldn't require signing paperwork now so it probably is a trust possibly one that will be formed upon the death of the grantor.
WhyNotUs
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Re: Being a trustee for a friend's estate

Post by WhyNotUs »

You don't have to sign papers on demand. Ask your friend to authorize 60 minutes of his attorney's time to meet with you in order to walk through the documents and answer your questions.
Need to understand your friends intentions (both written and unwritten) for your service as trustee, your fiduciary responsibilities and whether you feel confident to accept them, and your compensation for such efforts.
Year at which your responsibilities would end- children reach 21, forever, etc.
Unless the person is ill, it is unlikely that you will ever have to serve but it would be good to have an ongoing relationship with the beneficiaries should the situation arise. I have agreed to be trustee twice but never actually called into action.
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Topic Author
Grahamsdad
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Re: Being a trustee for a friend's estate

Post by Grahamsdad »

thank you.
bluemarlin08
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Re: Being a trustee for a friend's estate

Post by bluemarlin08 »

Being a trustee that requires on going maintenance is a task I would be very careful accepting. It is an honor that he has that kind of trust with you, but I would try to steer him toward using a corporate trustee.
Calm Man
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Re: Being a trustee for a friend's estate

Post by Calm Man »

I would tell my friend that you two will likely age together and it is better to have somebody younger handle it. You could add that you know basically nothing about how to be a trustee. I have done that on a few occasions.
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Jay69
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Re: Being a trustee for a friend's estate

Post by Jay69 »

If you friend is asking to be a Trustee while his kids are young for the next 20 years or so I would help them out.

If it was some kind of family HEMS trust that goes on forever I'm not so sure I would want to be part of it unless it had some verbiage that it goes to a Cooperate Trustee after X years.

Edit: Some people feel better if they know a family member or friend will be looking out for the kids interest. Not saying one is better than the other.
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Topic Author
Grahamsdad
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Re: Being a trustee for a friend's estate

Post by Grahamsdad »

thanks again for the intelligent responses.
sscritic
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Re: Being a trustee for a friend's estate

Post by sscritic »

Jay69 wrote:If you friend is asking to be a Trustee while his kids are young for the next 20 years or so I would help them out.
This may be the case. When we first wrote our wills, the kids were minors. In case we were to die when they were still minors, we named two people to handle their affairs, or rather one person to handle them and another to handle their money. But we only needed verbal agreement, so now I am leaning to another explanation. I certainly wouldn't be signing if I didn't know what or why I was signing. OP, ask your friend again what it is that you are expected to do under what conditions. Get it clear in your mind before signing anything else.

WhyNotUs basically said the same thing, but included the lawyer.
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Steelersfan
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Re: Being a trustee for a friend's estate

Post by Steelersfan »

sscritic wrote: This may be the case. When we first wrote our wills, the kids were minors. In case we were to die when they were still minors, we named two people to handle their affairs, or rather one person to handle them and another to handle their money. But we only needed verbal agreement, so now I am leaning to another explanation. I certainly wouldn't be signing if I didn't know what or why I was signing. OP, ask your friend again what it is that you are expected to do under what conditions. Get it clear in your mind before signing anything else.

WhyNotUs basically said the same thing, but included the lawyer.
+1 on all of that.

If you truly are trustee and signing documents, that means there may be money going into a trust now for the kids at some point. Depending on the nature of the trust, that could put you between the kids and their money at some time in the future. And put you in the position of defending how you directed the money to be invested.

I'd think long and hard about doing that.
Sparklebunny
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Re: Being a trustee for a friend's estate

Post by Sparklebunny »

Estate planning atty here. Typically if you're signing trust documents you are not a future trustee, but a currently acting one. That means you would have fiduciary duty from the minute those papers are signed. This is a huge deal. Breaching your fiduciary duty can put your personal assets at risk. You need to know what is going on and what your responsibilities are. I agree that friend should authorize 60 min with the atty to explain what's going on. You need to be able to make an educated decision about whether you want to do this and not go in blindly.
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prudent
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Re: Being a trustee for a friend's estate

Post by prudent »

I thought when the OP said "estate" it meant he was to act as executor. If the attorney had the OP sign documents to become a trustee of a trust that exists now, without any discussion/explanation about what it entails, then shame on that attorney.
Topic Author
Grahamsdad
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Re: Being a trustee for a friend's estate

Post by Grahamsdad »

I am meeting my friend tonight and will get his attorney's contact information. Thank you.
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dm200
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Re: Being a trustee for a friend's estate

Post by dm200 »

When my wife and I did our wills, those wills specified the creation of "testamentary trusts" upon our death(s). Nobody had the sign, or agree to, anything - and would only do so upon our death(s) when the trust(s) are created. I also advise gaining a full and complete understanding of what you are getting into before agreeing to anything, or signing any more documents.
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