How to Choose Fiduciaries for Your Estate Plan
What is a Fiduciary?
A fiduciary is a person or institution given the power to act on behalf of another in situations that require great trust, honesty and loyalty. When it comes to estate planning, you'll be selecting a variety of fiduciaries to act on your behalf. Here's a list of the fiduciaries you'll need to choose for your estate plan.
Who Can Serve as Fiduciaries?
While setting up your estate plan, you'll be asked to name a variety of fiduciaries to act on your behalf in certain situations. Find out who can and can't serve as your fiduciaries and why.
What is a Personal Representative?
A Personal Representative, also referred to as an Executor/Executrix or Administrator in some jurisdictions, is the fiduciary put in charge of settling a deceased person's estate.
How to Choose Your Personal Representatives
Serving as a "Personal Representative" or "Executor" is a huge responsibility and time consuming burden, but with the help of your estate planning attorney you should be able to choose the right person or institution for the job. Here are the qualities you should look for in your Personal Representative.
How Much Does a Personal Representative Get Paid?
If you've been appointed to serve as the Personal Representative or Executor of an estate, then in most cases you'll be entitled to get paid for the services you provide on behalf of the estate. How much you'll receive and when you'll receive it depends upon many factors.
How to Choose Your Successor Trustees
Serving as the successor Trustee of a Revocable Living Trust, whether due to the Trustmaker's disability or death, is a huge responsibility and time consuming burden, but with the help of your estate planning attorney you should be able to choose the right person or institution for the job. Here are the qualities you should look for in your successor Trustee.
How Much Does a Successor Trustee Get Paid?
If you've been appointed to serve as the Successor Trustee of a Revocable Living Trust after the Trustmaker has died, then in most cases you'll be entitled to get paid for the services you provide on behalf of the trust. How much you'll get paid and when you'll receive it depends on many factors.
How to Choose Attorneys in Fact for Your Power of Attorney
In setting up your estate plan, you'll be asked to name a number of fiduciaries to act on your behalf in various situations. One such fiduciary will be your "attorney in fact" named in your Power of Attorney. In addition to selecting your first choice, you should also name one or more backups just in case your first choice isn't available to serve.
Pros and Cons of Appointing Co-Fiduciaries
Many clients often ask me if it's a good idea to name two or more of their children or others to act as co-fiduciaries. This is really dependent upon each client's particular situation - in other words, sometimes it's a really good idea, and sometimes it's a really bad idea. Here's a list of the pros and cons that you should consider if you're trying to decide if you should appoint co-fiduciaries.
Pros and Cons of Appointing Institutional Fiduciaries
When it comes to naming fiduciaries, many people find it difficult to choose among their family members, still others don't believe that any of their family members are capable of serving, or legally they can't serve because they're still minors. In these situations, an institutional fiduciary may be the best choice.