I offer my estate planning services on a flat fee basis.  Let’s chat about your needs and then I can prepare a proposal with a flat fee quote based on the plan options that are the best fit for your particular circumstances.

The answer is maybe, but generally not.  If you need something quick that is extremely simple (like a Will that says everything to my spouse), then I might be able to help you on short notice.  But this is the exception rather than the rule. 

No.  A trust, specifically a revocable living trust, is merely a vehicle for managing assets, no matter their value, and settling an estate outside the court process.  Many people confuse a “trust fund” with the trust itself.  The trust is a legal structure, and that structure can hold any assets, not just the kind of investment assets that people think of as a “trust fund.” The trust can hold your house, your car, your checking account, even your coin collection.  While a trust may be more than some people need, many middle class families can benefit from having a revocable trust.

Probably not.  An estate plan needs to evolve as you do.  The objectives you had when your children were young may not be the same as when they are adults.  It is recommended that you review your current plan at least every five years to make sure your goals are still being addressed and any changes in the law are considered. 

It’s all about time and money.  Anytime you can do something quicker and with less cost, that’s preferable, right?  The probate process is a court process, which means that you must follow all the court procedures, on their timeline.  It involves court fees, legal fees, and generally about a year of time.  There are many things you can do with your assets to avoid probate, and I enjoy helping people take maximum advantage of those self-help options.

This is a very personal decision.  You should know that if the homework is not done to avoid probate, the job that your Executor will be required to do will be substantial and time consuming.  So it should be someone you not only trust to carry out your wishes with the Court’s guidance, but also someone who is ready to take on this big job.  You should discuss this with the people you are considering, and choose someone who is ready and willing to serve in this role.

Any and all legal fees or fiduciary fees are an expense of the estate. The Executor or Trustee is not personally responsible for paying for these expenses. I charge by the hour for legal services related to Estate and Trust Administration. If I serve as the fiduciary, there may be situations where a flat rate fee is feasible. 

Whether a probate proceeding will be needed depends on how the assets owned by the deceased loved one were titled. Probate is only needed when there are assets that were titled in the name of the deceased loved one alone and that did not have any beneficiary designation. For example, a bank account titled in the name of John Doe with no beneficiary named will need to go through probate, but an account titled in the names of John and Jane Doe as joint owners will not. Likewise, a life insurance policy with one or more individually named beneficiaries will not need to go through probate, but a policy with no beneficiary named, or that names the “Estate” as the beneficiary will.

Once all of the known assets have been scrutinized for how they were titled, then it will be clear whether a probate proceeding will be needed.

No.  If you do not choose to serve, you can decline to serve. If the deceased loved one named another person as a back-up, then that person would be named if you decline. If there is no back up, or the person named as back up declines to serve, then the Court would appoint someone appropriate to serve. It is not uncommon for an attorney to fill this role if no one else wants to do it.

This is a very difficult one to answer, because it depends entirely on the facts of the situation. There are some estates where the deceased loved one planned ahead well, by naming beneficiaries directly on most of their assets. If there are limited assets (less than $45,000 in value) that slipped through the cracks, in other words, that were titled in the name of the deceased alone with no beneficiary named, then the assets can be administered through a small estate proceeding in court, which is much faster than the regular probate route. In this situation, the small estate may be completed in only a couple of months in the best case scenario.

The more typical situation involves more time. I would say the average regular administration where no estate tax returns are needed can be completed within a year. If estate tax returns are needed, then it is more likely to take more than two years because of the need to wait for the IRS to process the return. 

The timing of trust administration is similarly dependent on the tax filing requirements for the trust. If no estate tax returns are needed, and if the trust calls for outright distribution of the trust assets, then the process can be completed within a year or less. But estate tax filing requirements, if they exist, once again add significant time until the trust can be terminated.

I will answer this in broad strokes by first identifying the various kinds of returns that may be needed. There are a few different tax filings that may be needed when wrapping up an estate.

The first is the final personal income tax return for the deceased person to pay taxes on any income earned in their final year of life. There are both state and federal returns required.

The next is called a “fiduciary income tax return” which is simply the income tax return for the entity (whether a trust or estate) that took over ownership of the assets upon the death of the deceased. Again, both state and federal returns may be required if the trust or estate earned enough income to trigger the filing requirement. If no or very little income is earned, then no income tax return may be due.

And the last filing that may be required is the “estate tax return.” This tax and filing requirement only arises if the total value of the assets owned by the deceased is greater than $5 million, which is the current threshold amount to trigger a filing requirement in the State of Vermont. All assets are counted toward this threhold number, even those that pass directly to beneficiaries like IRAs and life insurance.  There is also a federal threshold of $11.58 million above which a federal tax may be due. This means that if the deceased owned less than $5 million in assets at death, then there are no estate taxes due anywhere, and no requirement to file an estate tax return. The majority of estates will not need to file an estate tax return.

If the debts of the estate are greater than the assets available to pay them, then the estate is deemed “insolvent.” This does not eliminate the need to administer the estate, however. The assets will still need to be administered, and the creditors will need to be paid from the assets in proportion to their share of the total outstanding debts. The court’s approval over how payments to creditors are to be made is required prior to paying anyone. Certain debts take priority over others. Expenses of administration (funeral expenses, legal fees, accounting fees), and reasonable executor fees will be paid before any remaining creditors.