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Trustee/Executrix Questions

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rosacombs

Junior Member
What is the name of your state?What is the name of your state? TX

I am the Trustee/Indep. Executrix/Durable POA and beneficiary for my Aunt's estate. I have full Trustee powers as defined by the State. The will is a "pourover" for the Trust.

FACTS: All bank accounts are joint-accounts with Survivorship
Life insurance policies have beneficiaries
House, contents and car are listed under the Trust
Aunt is in a nursing home very ill.
All bills/debts/etc. are to be paid from the "Estate".

QUESTIONS:
1. Are the joint bank accounts and policies part of the "Trust"?
2. If not, do I need to have the will probated since everything else is listed under the "Trust"?
3. I have paid for the nursing home and medical expenses out of one of the joint-accounts and not the estate (not liquidated). Do I need to reimburse the account from any sale of the estate?
4. Are the joint accounts part of the "principal and undistributed income of the trust"?

Also, a number of contents have been stolen (possibly by neighbors who have a key). I have filed a police report and insurance claim so that there would be an accounting for the items. However, that has seemed to cause even more trouble. The contents were to be split between two of the nieces.
4. One niece did not want any of the contents until she found out the cost for a few of them. Do I abide by her original decision to forgo the contents?
5. If not, how do I handle the insurance proceeds? By item or as a whole? Some of the items were promised to the other niece (verbally) and were surprisingly costly.
6. Now, other family members are coming forward stating that certain contents were promised to them - I have no knowledge of this. If they have no value to the two nieces, is it ok to give the items to others?
7. How do I keep my duties from being "tinted" by the failure of any of the other beneficiaries to help me during this time? Most have not seen her in over 10 years and seem to only be intersted in the money. It's hard to see such uncaring people inherit anything from this wonderful lady.

And on a personal note, I have had to take a leave of absence from work due to my Aunt's health issues, care, home repairs, insurance problems, etc. as she lives in another city. As Independent Executrix/Trustee - can I recoup any of my lost wages as it is causing a burden on my own family? (Yes, her Trust provides for "reasonable" expenses incurred.) What is considered reasonable?
 


Dandy Don

Senior Member
Joint accounts with survivorship going to whom? Your aunt's surviving husband or to you specifically by name?

(1) The joint bank accounts and policies are NOT part of the trust--if beneficiaries or co-account owners were named, they pass directly to the beneficiaries, and thus no need to go through probate.

(3) No need or justification for reimbursing the account since you have used aun's own money for her own living expenses.

(4) No, joint accounts are NOT part of the "principal and undistributed income" of the trust--probably the only undistributed income you will have will come up in the future, from dividends on stock or interest income from annuities if any.

You do not need to abide by niece's original decision to forego the contents--you must distribute the contents exactly as the will and trust instruct, unless niece declines in writing.

(6) Ask aunt about what items were promised to whom. If she can't supply answers, then you have authority as executor to decide who you want to have what, no matter what the people claim.

(7) You keep your duties from being tainted by following the instructions of the will and trust exactly--it is not your job to determine who has been the most caring or uncaring--these beneficiaries are eligible to receive their bequest no matter what you think about them personally.

You will be receiving a fee for being trustee and you need to find out how much it will be, and possibly receiving a fee as executor IF the pourover will is probated.

This is a situation that cries out for you to at least consult with a trust attorney for consultation on anything you may be concerned about or unfamiliar with.

DANDY DON IN OKLAHOMA (tiekh@yahoo.com)
 

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