Will/Executor question

[mefordis]

My dad just told me that he is going to put in his will that a 3rd party is to be in charge of selling his house when he dies, so he we don't have to deal with it. I told him that whoever he appoints as the executor is in charge of all of that. If he appoints a 3rd party as an executor, they will be in charge of everything and able to dictate when we go in the house to get things that aren't valuable but hold emotional value.

We had a little disagreement but he stated he can write anything he wants in the will, make one of the kids executor and at the same time hire someone to deal with the house. But if one of us kids is the executor can't we just fire the person and do it ourselves? Not that we would be doesn't the executor get the final say?

This was a ridiculous conversation to have in the first place, but now I am curious. Anyone know how this would work?

 

[MickeySP]

He can add any codicil he wants to his will. If it is easily broken his attorney should advise him so.

Another reason to have a pro draw up a will.

I am th eexecuotr of my Father's estate but I cannot dispose of assets, he wrote that in. He left my Mom lifetime tenancy so even though I have control she has a bit of say.

 

[Pakey]

My parents have a 3rd party in charge of theirs. None of us children will be able to go in and take anything, sentimental or not.

I heartily support their decision. I've always felt that way. It's their stuff, their assets. They can do whatever they want with it.

 

[golfgal]

He would actually need a trust set up with his will, at least in our state, to do this. You can then appoint a trustee to deal with whatever you want them to do. It is MUCH easier to have a 3rd party trustee to deal with financial matters vs a family member. They have oversight and fudiciariy responsibilities that are monitored by outside agencies so you don't have a relative taking everything and leaving nothing to those that are supposed to get it.

You should also look into the tax implications and how this is set up. Do NOT transfer property before he dies or you end up paying tax on HIS cost basis. If the property transfers after he dies you get a step-up in basis to the current market value. Perfect example, my grandpa bought his property 60 years before he died for $8000. The value of that land/property when he died was well over $1,000,000. Had he put my Dad on his deed before he died, my dad would have had to pay tax on the $1,000,000 minus the $8000 and whatever improvements were made over time. Since it was not transferred before he died, my Dad's cost basis was the $1,000,000+ and paid NO taxes on the first million when he sold the property.

This is something that both a certified financial planner and an estate planning attorney should be helping him with.

 

[MickeySP]

He would actually need a trust set up with his will, at least in our state, to do this. You can then appoint a trustee to deal with whatever you want them to do. It is MUCH easier to have a 3rd party trustee to deal with financial matters vs a family member. They have oversight and fudiciariy responsibilities that are monitored by outside agencies so you don't have a relative taking everything and leaving nothing to those that are supposed to get it.

You should also look into the tax implications and how this is set up. Do NOT transfer property before he dies or you end up paying tax on HIS cost basis. If the property transfers after he dies you get a step-up in basis to the current market value. Perfect example, my grandpa bought his property 60 years before he died for $8000. The value of that land/property when he died was well over $1,000,000. Had he put my Dad on his deed before he died, my dad would have had to pay tax on the $1,000,000 minus the $8000 and whatever improvements were made over time. Since it was not transferred before he died, my Dad's cost basis was the $1,000,000+ and paid NO taxes on the first million when he sold the property.

This is something that both a certified financial planner and an estate planning attorney should be helping him with.

This is right on.

My father was an attorney and had a trust set on all his properties. It takes both trustees to dispose of any properties. But My Mom has life tenancy on the family home.

He did this to take that burden off me. It is amazing how people behave after a death.

 

[mefordis]

I think he is seeing the difficult time my mom is going through after losing her mom and dealing with her siblings trying to sort out the estate.

 

[RitaE]

My MIL passed away a couple of months ago with an estate valued at approximately $10 but does include a mortgaged to the max house. Take my advice, go give your Dad a huge HUG and thank him for taking that burden away from you.

His lawyer can set it up.

It is amazing how people behave after a death.

OMG you are not kidding. In our case family members were ransacking her house and Assisted Living apartment before she had even died.

 

[The Mystery Machine]

So I have a question then..... My sister's DH is going to be the executor of his mom's estate.

She is leaving the house with debt to 2 of her broke children who will not be able to pay for the house or get a mortgage loan. One of the sibs is mentally ill right now and the other will be in prison.

She also is under the impression she can leave the 5 acres seperately to 2 other sibs, one of which is my sister's dh. I don't think that is reality. The house mortgage includes the land value I would assume.

Anyway my sister is the person that is doing the finances right now. I told her to contact the bank and find out what the deal is. She will be looking into this week.

I do not think we can make the mom understand the implications of what she is doing. It is a sad situation.