Funeral Expenses. An executor does not necessarily take on financial responsibility for the decedentâs funeral arrangements. When he acts in his capacity as executor, he is making financial decisions for the decedentâs estate, and the decedentâs funeral arrangements become a debt of the estate.
By law, income to the trust funds must be invested, on a daily basis, in securities guaranteed as to both principal and interest by the Federal government. All securities held by the trust funds are special issues of the United States Treasury. Such securities are available only to the trust funds.
Tax consequences, attorney fees, and the possibility that your child's eligibility for financial aid will be negatively impacted may also be drawbacks to this type of funding. Two types of trusts often used for college education funds are a Section 2503(c) trust and a Crummey trust. The Section 2503(c) trust controls funds like a classic trust: A trustee manages the funds for the child's benefit, and at age 21, the child receives the remaining principal and income.