Dear Liz: My brother and his wife recently announced that they have made me the executor of their living trust. I have no experience with this. They live in Maryland and I’m in California. Can you tell me what I can do now to simplify the process when I need it?
answer: your brother and his wife should asked If a living trust is involved, we ask that you be willing to take on this role, which is called a “successor trustee” rather than an executor. Just because your name appears on a document does not mean you are required to serve. Their trust should nominate others who can serve. If not, the court can step in and appoint someone.
Becoming a successor trustee or executor is a significant responsibility that often spans many years. You will need to manage trust assets, pay final bills and creditors, and communicate with beneficiaries. Successor trustees may have added responsibilities, as they typically have to step in if the trust settlor becomes incapacitated.
But if you’re so inclined, agreeing to this role can be a way to honor the people you love by ensuring you follow their wishes. It is an honor to be asked to serve as your successor trustee or executor. The trust creator believes that you are honest, trustworthy, and diligent enough to take on this important responsibility.
You are allowed, and probably should, use your estate funds to hire legal and tax assistance. The Foundation must also cover your travel expenses to meet your obligations.
You can do some research before making a decision. Request a copy of your trust to begin to understand what is involved in settling trust assets and estates.
Dear Liz: I read your column about cardholders being afraid to cancel their cards. This is my story.
I purchased it online using my credit card, which I have had since 1981. The purchase turned out to be fraudulent. I spent hours trying to solve this. When she finally got a human, she was very difficult to understand and had a very condescending attitude. She said I would have to upgrade to a different version of the card at a higher cost. I finally told her to cancel the card. She then went to the second page of the script and offered a $50 credit towards the disputed purchase. After 20 minutes, she finally canceled the card after I insisted I didn’t want it anymore. My credit score dropped by 4 points. I was worried at first, but honestly, after 44 years of relationship and thousands of dollars in annual fees, seeing how I was treated made the decision easier.
answer: Thank you for sharing your experience! If it was a card with a maximum limit, you didn’t have many other cards open, or your credit score wasn’t great, the impact of closing your account may have been greater. However, as long as you continue to use your other accounts responsibly, even major problems will be temporary.
Dear Liz: In a recent column, you advised people to pay their IRS taxes online. Have you ever done this yourself? The wording of the options you click can be confusing. I tried to help my son pay online last year. We clearly chose the wrong kind of tax and it ended up in “La La Land.” He was fined for a late letter. It took me quite some time to fix it as it was on hold for several hours. Who has time for that? I’m going to have him mail it to me next year and take a chance.
answer: I too have made exactly the mistakes you describe, and I know how frustrating it can be to rectify the situation. But dealing with mail theft and check fraud can also be frustrating.
We both would have benefited from consulting with a tax professional first to make sure we were clicking the right buttons. A tax professional can also help resolve the issue. The IRS is understaffed and was having trouble answering calls even before the government shutdown, but numbers reserved for tax professionals often have shorter wait times than numbers for the general public.
Liz Weston, a certified financial planner, is a personal finance columnist. Questions can be directed to 3940 Laurel Canyon, No. 238, Studio City, CA 91604 or by using the “Contact” form below. .
