Coaching Tips For Executors & Trustees To Finish Well

I write this article as an expert in my field, I am a certified specialist with 18 years of legal

experience. I write also as an experienced coach; I have just completed my 3rd year as a

volunteer assistant ski coach for Amador High School. What could administering a Decedent’s

Estate or Trust have to do with Alpine ski racing? I have learned that my student athlete, as well

as my client who is currently serving in the role as an Executor and/or Trustee, must focus on the

finish line.

Sometimes the course is short and fast and sometimes it is long and exhausting but no matter

what the course consists of, both the ski race and the administration have a “start gate” and a

“finish line.” The advantage my student athletes have is the fact that before every race they are

allowed to inspect the course. The alpine racers do not have a practice run, but they are allowed

to side slip down the course to inspect what they are about to ski. It is during this inspection

exercise that the coach can encourage the athlete and advise them, so they know what to expect

and how to handle it. Unfortunately for my clients, they are not allowed to inspect the course

prior to their administration so they do not know when they hit the start gate if their

administration will be short and fast or long and exhausting.

In trust administration, the start gate is when the Trustee is called to serve which in most cases is

the time of death. Sometimes the Trustee must start prior to the Grantor’s death as a result of the

Grantor’s resignation or incapacity. A resignation is the Grantor simply signing a resignation

and allowing the Trustee to commence serving. This is a rare occurrence but happens if the

Grantor chooses to quit handling their own affairs even if they have the capacity to continue

management. Incapacity will also trigger the start gate of administration at the point a Doctor

deems the Grantor incapacitated.

If you are an Executor under a Will or an Administrator for a Decedent who failed to write a

will, you will need to prepare for a long and exhausting course which means adhering to the

filing deadlines of the probate court and paying a lot of fees including court costs and statutory

fees which add up quickly. Once it is determined that an estate must be probated, the Executor

hires an attorney to file the Petition For Probate with the superior court which costs $435.00 to

file. The attorney is required to publish the legal notice in the local newspaper before the court

date. The publication fee is approximately, $200 to $600 depending on the newspaper. The

course gets longer as the Executor waits until the first court date, which is at a minimum 30 days

from filing the Petition for Probate. Once the Executor obtains court appointment, they then

commence a 4 month to 12-month court-supervised process as they inventory the estate; pay

creditors; and make a distribution. Upon completion of the administration, the Executor must

file for court approval of their accounting report which costs an additional $435.00 to file. The

accounting is an itemized report of what assets the Executor collected; what liabilities the

Executor paid, and the proposed distribution. The accounting report includes the calculation of

the fees the Executor and the attorney for the Executor is entitled to which are defined by statute.

The Executor is paid pursuant to Probate Code § 10800 which provides “(a) Subject to the

provisions of this part, for ordinary services the personal representative shall receive

compensation based on the value of the estate accounted for by the personal representative, as

follows: (1) Four percent on the first one hundred thousand dollars ($100,000). (2) Three

percent on the next one hundred thousand dollars ($100,000). (3) Two percent on the next eight

hundred thousand dollars ($800,000). (4) One percent on the next nine million dollars

($9,000,000)…” The Executor’s attorney is paid the same statutory fee which adds up quickly.

For example, if the Decedent’s house is valued at $300,000 as of the Decedent’s date of death.

The attorney receives payment in the amount of $9,000 and the Executor receives payment in the

amount of $9,000.

If you are a Trustee under a Trust you may be blessed with a short and fast course or you may

be tasked with a long and exhausting course. The best example of a short and fast course for

trust administration is when the Trustee is the sole Trustee and the sole beneficiary. The

administration process still takes 6 months to a year since the sole Trustee and sole beneficiary

must still fulfill legal and financial requirements which usually include but are not limited to

inventorying the estate; paying creditors; and making a distribution. Another example of a short

and fast course for trust administration is when a Trust is valid and is funded properly and the

Trustee does not have any unexpected turns. An unexpected turn in a trust administration is

when a Trustee discovers that the Grantor failed to keep their trust funded which results in a long

and exhausting course. To avoid probate, your real property and bank accounts need to be

registered in the name of your Trust. I assist clients in this process by preparing the Trust

Declaration, the Trust Certification; the Trust Transfer Deed(s) for Real Property; and the

Itemized Schedule of Trust Assets. The Trust Transfer Deed(s) for Real Property must be

recorded in the County where the real property is located. To avoid probate, your bank accounts

need to be registered in the name of your Trust. It is not sufficient to just add one of your

beneficiaries on your account as a joint owner. If both joint tenants die, the account is frozen for

40 days and may be vulnerable for a probate if the dollar amount in the account exceeds the

small estate amount which is currently $166,250.

A coach is a person who is dedicated to building character and maximizing potential. A coach

also teaches, supports, and mentors. I embrace these definitions for coaching and see the

similarity with my profession. New attorneys are taught that a lawyer performs various

functions. As advisor, a lawyer provides a client with an informed understanding of the client’s

legal rights and obligations and explains their practical implications. As advocate, a lawyer

zealously asserts the client’s position under the rules of the adversary system. As negotiator, a

lawyer seeks a result advantageous to the client but consistent with requirements of honest

dealings with others. As an evaluator, a lawyer acts by examining a client’s legal affairs and

reporting about them to the client or to others. This year marks my 19th year as a zealous

advocate providing legal services for clients who find themselves in need of legal guidance.

Executors and Trustees need a trusted legal professional who will encourage them to complete

their role and fulfill their legal duties to the best of their ability and with a focus on the finish.