Help.....I need to learn about 'trusts'

[northstar]

I'm the executor of my mother's 'estate' (modest)....but I don't know enough/anything about this aspect of it. Where do I look?/who should I talk with? (I know/understand that an executor is different than a trustee).

Any help would be appreciated. I do sense this is a 'big'/complicated subject.

Thanks in advance.

on edit: typo and clarity correction

[Nite Owl]

1. I was the executrix of

my mom's estate. Get thee to an estate lawyer. I did a lot myself, it was 6 yrs ago but I had help from several people I knew. The difficulty lies in the size of the estate if taxes need to be paid and how many people were mentioned in the will. My lawyer was in NYC and was excellent and fair. If you are near there email me and I'll give you his name and number.

[curse10]

2. if possible

go the attorney that set up the trust and will. if you have to do an estate tax return it can get pretty complicated (not necessary to file if the total estate is worth less than 1.5 million)

otherwise any will should lay out in clear language exactly what needs to be done- if it doesn't then it's a bad will, imho. If there is a trust involved (which if there is a large amount of money involved, there should be) the trust document will have all the instructions and the trustees take care of it.

[gauguin57]

4. I think the amount you have to pay on for federal inheritance taxes

is anything above $1 million. But you still have to file an estate return, and also personal returns (state and federal) for the deceased for the portion of the last year they were alive.

But then there are the state inheritance tax returns, if your state has such a thing. My state does.

Then, after the estate distributions are made, each beneficiary is responsible for reporting any estate INCOME (interest earned on the estate account while it was being executed, etc.) on their personal returns -- someone has to do K-1 forms for each beneficiary (but that may be only if the income is a certain amount).

It is MUCHO COMPLICATED. And as soon as you really have figured out what you're doing as exeuctor, it's all over!

[medeak]

6. true

unless trust took out insurance for inheritance tax which I have done?

[northstar]

8. *fainting*

And as soon as you really have figured out what you're doing as exeuctor, it's all over!

I figured as much! Thanks! ... lol

(I still haven't heard what I think I want to know yet though....about how trust 'really' work)

[curse10]

9. it's 1.5 million for the feds

depending on the state it does vary (here in Mass it's 850K- estate planning nightmares)

and you can get away without having your beneficiaries paying any income tax, you just have to be a smart estate planner ;)

[gauguin57]

3. If you're talking about someone inheriting part of the estate...

... that they won't get till they're age 21 or 25 or something, a lawyer can set that up for you. The lawyer did that for us ... set them up for my my sibling's kids, who were inheriting a portion of my parents' estate. The trusts were set up for the kids with their parent as trustee for that money -- that parent will decide how to invest it for them until they see whatever's left after their college expenses. The estate distribution checks will be made out to the "Susie Q. Public Trust," for example. Seriously ... talk to the attorney who's doing the estate work for you.

[medeak]

5. set up a family trust

years ago for my kids. (gawd I'm old) .. go to the attorney that set up trust.

[gauguin57]

7. One other piece of advice ...

... keep the beneficiaries "in the loop." If you keep them apprised of what you're doing as executor the whole way along -- give them copies of pertinent documents like the estate tax returns, the sales papers for any property of the deceased, etc. -- they're more likely to agree with the final settlement of the estate.

Transparency is the watchword!