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Choosing the Right Beneficiaries and Fiduciaries for Your Estate Plan

Posted by Gregory Robinson | Oct 20, 2023 | 0 Comments

One of the most important decisions you will make when creating your estate plan is choosing who will inherit your assets and who will manage them on your behalf. These people are known as beneficiaries and fiduciaries, respectively. In this blog post, we will explain what these terms mean, why they matter, and how to choose the right ones for your situation.

What are Beneficiaries and Fiduciaries?

Beneficiaries are the people or entities that will receive your assets after you pass away. You can name anyone as a beneficiary, such as your spouse, children, grandchildren, friends, charities, or even pets. You can also specify how much each beneficiary will receive, whether it is a percentage, a dollar amount, or a specific asset. You can also name contingent beneficiaries, who will inherit your assets if your primary beneficiaries predecease you or disclaim their inheritance.

Fiduciaries are the people or entities that will manage your assets and affairs during your lifetime and after your death. There are different types of fiduciaries, depending on the role they play in your estate plan. Some of the common fiduciaries are:

  • Executor: The person who will administer your estate according to your will and pay your debts, taxes, and expenses.
  • Trustee: The person who will manage the assets you place in a trust for the benefit of your beneficiaries.
  • Guardian: The person who will take care of your minor children or other dependents if you become incapacitated or die.
  • Agent: The person who will act on your behalf under a power of attorney or a health care directive if you become incapacitated.

Why Do Beneficiaries and Fiduciaries Matter?

Choosing the right beneficiaries and fiduciaries is crucial for several reasons:

  • It ensures that your assets will go to the people or causes you care about most and avoid unwanted outcomes, such as disinheriting someone or creating family conflicts.
  • It protects your assets from creditors, lawsuits, divorce, or other threats that may arise during your lifetime or after your death.
  • It minimizes the taxes, fees, and delays that may be associated with probate, which is the court-supervised process of settling an estate.
  • It preserves your privacy and avoids public disclosure of your personal and financial information.
  • It honors your wishes and values and reflects your legacy.

How to Choose the Right Beneficiaries and Fiduciaries for Your Estate Plan?

Choosing the right beneficiaries and fiduciaries for your estate plan is not a one-size-fits-all decision. It depends on various factors, such as:

  • Your family situation and dynamics
  • Your financial goals and needs
  • Your personal preferences and values
  • The nature and value of your assets
  • The laws of your state

Some of the questions you may want to ask yourself when choosing your beneficiaries and fiduciaries are:

  • Who do you want to inherit your assets and why?
  • How do you want to distribute your assets among your beneficiaries?
  • Do you want to impose any conditions or restrictions on their inheritance?
  • Do you want to leave any charitable gifts or donations?
  • Who do you trust to manage your assets and affairs in your best interest?
  • Who has the skills, experience, and availability to handle the responsibilities of being a fiduciary?
  • Do you want to name more than one fiduciary or a successor fiduciary in case something happens to the first one?
  • Do you want to compensate your fiduciaries for their services?

These are not easy questions to answer, and they may change over time as your circumstances evolve. That is why it is important to consult with an experienced estate planning attorney who can help you create a customized estate plan that suits your unique situation. An estate planning attorney can also help you update your estate plan periodically to reflect any changes in your life or the law.

At The Robinson Advocacy Group, we have helped many clients design and implement effective estate plans that meet their goals and protect their loved ones. We can help you choose the right beneficiaries and fiduciaries for your estate plan and guide you through every step of the process. please click here to schedule your Life and Legacy Kickoff Meeting with Attorney Robinson please click here to schedule your Life and Legacy Kickoff Meeting with Attorney Robinson. We look forward to hearing from you!

About the Author

Gregory Robinson

Attorney Gregory Robinson is a native of Alabama. He earned his Juris Doctor (J.D.) degree from Mitchell Hamline School of Law and holds a Master of Business Administration (MBA) degree from Rice University. Prior to practicing law, he worked as a strategy consultant in the financial industry...


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