Vanguard Trust (Doesn't accept Real estate, etc.)

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fortfun
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Vanguard Trust (Doesn't accept Real estate, etc.)

Post by fortfun » Wed Jun 05, 2019 2:00 pm

Since Vanguard Trust won't accept real estate, does your attorney just specify that your co-trustee, or the executor of your will, sell your real estate and give the proceeds to your Vanguard trust? Also, what about life insurance policies, same thing? How can you ensure this will happen? My attorney has never used Vanguard as a Trustee and I'd like to get some second opinions on this.
Administration of nonfinancial assets. VNTC shall act primarily as
trustee of assets traded on an established securities exchange. VNTC
shall not accept or be responsible for the administration, maintenance,
disposition, or sale of real estate, business assets, tangible personal
property, or any other nonfinancial assets not traded on an established
securities exchange, unless expressly agreed to by VNTC in a separate
writing. Any Trust asset not accepted by VNTC shall be administered in a
separate share of the Trust by and at the sole discretion of the remaining
co-trustee(s), or if there is no co-trustee then serving, by a trustee who
shall be appointed in the following order: (i) as set forth in the Trust
instrument for filling a vacancy in the office of trustee, (ii) as unanimously
agreed to by the sui juris current eligible income beneficiaries of the
Trust, or (iii) as set forth in state law. Any person or organization may be
appointed as trustee pursuant to this paragraph, notwithstanding any
contrary provision in the Trust instrument.

Gill
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Re: Vanguard Trust (Doesn't accept Real estate, etc.)

Post by Gill » Wed Jun 05, 2019 2:05 pm

Yes, as for real estate the personal representative could sell the real estate unless it is specifically devised to an individual. Life insurance can be payable to the estate, the trust, or an individual and collected by the appropriate beneficiary. Personal property is normally devised to individuals or sold by the personal representative.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

bsteiner
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Re: Vanguard Trust (Doesn't accept Real estate, etc.)

Post by bsteiner » Wed Jun 05, 2019 2:11 pm

If a trust under the Will owns real estate, the other trustees will be responsible for it.

This used to happen more often when the estate tax exclusion amount was much lower, and the decedent's interest in the home sometimes went into the credit shelter trust because there weren't enough other assets to fully fund it. It sometimes happens now if a beneficiary's assets are all or mainly held in trust and a trust buys a residence for the beneficiary.

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fortfun
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Re: Vanguard Trust (Doesn't accept Real estate, etc.)

Post by fortfun » Wed Jun 05, 2019 2:15 pm

Gill wrote:
Wed Jun 05, 2019 2:05 pm
Yes, as for real estate the personal representative could sell the real estate unless it is specifically devised to an individual. Life insurance can be payable to the estate, the trust, or an individual and collected by the appropriate beneficiary. Personal property is normally devised to individuals or sold by the personal representative.
Gill
Thanks Gill. Anyway to ensure the personal representative does this?

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fortfun
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Re: Vanguard Trust (Doesn't accept Real estate, etc.)

Post by fortfun » Wed Jun 05, 2019 2:15 pm

bsteiner wrote:
Wed Jun 05, 2019 2:11 pm
If a trust under the Will owns real estate, the other trustees will be responsible for it.

This used to happen more often when the estate tax exclusion amount was much lower, and the decedent's interest in the home sometimes went into the credit shelter trust because there weren't enough other assets to fully fund it. It sometimes happens now if a beneficiary's assets are all or mainly held in trust and a trust buys a residence for the beneficiary.
The other trustees being the co-trustees spelled out in the will? Thanks.

Gill
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Re: Vanguard Trust (Doesn't accept Real estate, etc.)

Post by Gill » Wed Jun 05, 2019 2:38 pm

fortfun wrote:
Wed Jun 05, 2019 2:15 pm
Gill wrote:
Wed Jun 05, 2019 2:05 pm
Yes, as for real estate the personal representative could sell the real estate unless it is specifically devised to an individual. Life insurance can be payable to the estate, the trust, or an individual and collected by the appropriate beneficiary. Personal property is normally devised to individuals or sold by the personal representative.
Gill
Thanks Gill. Anyway to ensure the personal representative does this?
It's really a combination of it inherently being the personal representative's job or else spelled out in the will.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

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fortfun
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Re: Vanguard Trust (Doesn't accept Real estate, etc.)

Post by fortfun » Wed Jun 05, 2019 2:44 pm

Gill wrote:
Wed Jun 05, 2019 2:38 pm
fortfun wrote:
Wed Jun 05, 2019 2:15 pm
Gill wrote:
Wed Jun 05, 2019 2:05 pm
Yes, as for real estate the personal representative could sell the real estate unless it is specifically devised to an individual. Life insurance can be payable to the estate, the trust, or an individual and collected by the appropriate beneficiary. Personal property is normally devised to individuals or sold by the personal representative.
Gill
Thanks Gill. Anyway to ensure the personal representative does this?
It's really a combination of it inherently being the personal representative's job or else spelled out in the will.
Gill
Got it! I guess you need to make sure other people have their eyes/hands on the will.

afan
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Re: Vanguard Trust (Doesn't accept Real estate, etc.)

Post by afan » Wed Jun 05, 2019 4:12 pm

Although we assume the personal representative/trustee would sell the real estate, we don't require that in the will or trusts.

We pick people we trust to make good decisions. Selling might not be the best action when the time comes. Why tie their hands?
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama

Gill
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Re: Vanguard Trust (Doesn't accept Real estate, etc.)

Post by Gill » Wed Jun 05, 2019 4:15 pm

afan wrote:
Wed Jun 05, 2019 4:12 pm
Although we assume the personal representative/trustee would sell the real estate, we don't require that in the will or trusts.

We pick people we trust to make good decisions. Selling might not be the best action when the time comes. Why tie their hands?
No, of course not. They should have broad powers to do whatever is in the best interest of the estate and trust.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

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