Can a family member act as an executor or trustee?
Can a family member act as an executor or trustee?
A family member or friend can act as trustee or executor, but work alongside a corporate trustee who will guide on issues like tax, real estate and the assist with financial decisions.
Can a beneficiary buy out an executor of an estate?
In many cases, the remaining heirs will be amenable to such a buyout, since this can reduce the expenses associated with closing out the estate. Instead of selling the family home and incurring real estate transfer taxes, brokerage fees and other expenses, the other heirs can simply sell their shares in the property and walk away.
Can a child be the executor of an estate?
State laws governing probate expect the executor of an estate to be diligent and impartial. The executor owes a legal duty to anyone with an interest in the estate and cannot favor one person or himself over others. If a child wants to buy the family home, he should decline to be the executor.
When to hire a trustee or estate executor?
“If you have a complex or very substantial estate may make sense to hire a professional trustee or executor rather than rely on a family member or friend,” said Banuelos. “A professional fiduciary has the expertise to foresee possible issues, handle legal or tax problems and make sure your last wishes are implemented as seamlessly as possible.”
In many cases, the remaining heirs will be amenable to such a buyout, since this can reduce the expenses associated with closing out the estate. Instead of selling the family home and incurring real estate transfer taxes, brokerage fees and other expenses, the other heirs can simply sell their shares in the property and walk away.
Can a child be the executor of a family home?
If a child wants to buy the family home, he should decline to be the executor. If that’s not feasible, the heirs and court must be on board with the sale before beginning the purchase process. If not, the executor could violate his fiduciary obligations and create a conflict of interest.
When does one person buy out the others in a home Trust?
If the parties to a home trust agree that one will buy the others out, O’Hare says, it’s important that the transaction be treated as an “ arm’s-length transaction ,” which means the property needs to be sold for fair market value and emotions need to be put aside.
Who are the beneficiaries of a family trust?
The trustee is the person who manages the assets in the trust on behalf of the beneficiaries. The beneficiaries are the individuals who receive some type of financial benefit from the trust, similar to a beneficiary for a life insurance policy. A family trust has just your family members as the beneficiaries.