Coaching Tips For Executors & Trustees

What could a Decedent’s Estate or Trust administration have to do with Alpine ski racing? When I think about coaching executors and trustees it reminds me of my volunteer role as an assistant coach for the Amador High School ski team.  I was happy to help for six years while my son and daughters participated in the sport.  I have since retired as a volunteer coach, but the ski racing experience reminds me that executors and trustees need a coach since they don’t know what their administration will look like.  I learned that my student athlete, as well as my client who is currently serving in the role of an Executor and/or Trustee, must focus on the finish line.  

This year is my 21st year in business as a zealous advocate providing legal services for clients who find themselves in need of legal guidance regarding probate and trust matters. While working with families and sometimes litigating estate and trust issues, I have seen the heartache, fighting and destruction of relationships firsthand.  I am convinced that much of what I have seen and experienced, both in and out of court, could have been avoided if the Trustee and/or Executor received proper training, advice, and resources so I want to share my coaching tips for executors and trustees.  

The biggest mistake that executors and trustees make is to think: “This should be easy.”  But the truth is that even though a trust is designed to avoid the probate process, administration is not always easy because wrapping up a person’s personal affairs does take time and there are a fewfinancial and legal steps that need to be taken care of.  Executors and trustees have a big job, and they need to give themselves a full year to fulfill their duties.  Just like a ski race, the course is the same for each racer but they each experience the race differently.  My ski team got to do course inspection before each race. They got to see ahead of time what the course looks like. Executors and Trustees have a finish line, but they don’t know ahead of time what the course will look like.

First, make sure there are documents in place.  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 had was 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 Doctordeems 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 ofthe 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 $184,500 (as of April 1, 2022).

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 since 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 line.