What I've Learned from My Inheritance

We are down to the final elements of distributing my parents' estate. I always get a personal education when doing a new task. As an executor and trustee, I've learneda lot about what to do for our own estate planning. Here are a couple of my key insights.

Real property.  Real property can't be easily divided like stocks or cash.  It can either be owned jointly, sold and distribute the proceeds, or given to one heir but reducing his share in another area.  Joint distribution may result in owners that have different objectives that are in conflict.  Selling may be result in a sale at a lower price, since the goal is to complete the transaction quickly.  Assign the real property to one heir will require an appraisal that assigns fair value. 

Number of executors/trustees.  Having co-executors allow splitting up the work and provides more perspective dividing the property.  However, co-executors can create more transaction time and effort when there is not agreement.

Based on my experience, my spouse and I are updating out trusts to have one successor trustee to manage the finances for our minor children.  In addition, we will consider options that help eliminate or make the transfer of real property easier and faster.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial advice. Please consult a professional advisor.

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