When planning your estate, selecting a trustee, executor, and agent under a power of attorney is a critical step. These individuals are fiduciaries, meaning they are legally obligated to act in your best interest and the best interests of your beneficiaries. Whether you are drafting a will or establishing a trust, choosing the right people to fill these roles ensures that your wishes are carried out smoothly and efficiently.

In this guide, we'll walk you through the key responsibilities of trustees, executors, and agents under a power of attorney, along with tips for selecting the right individuals for each role.

What Is a Fiduciary?

A fiduciary is someone legally required to act in another person's best interest. Trustees, executors, and agents under powers of attorney are examples of fiduciaries. By choosing someone for these roles in your estate plan, you're ensuring that your financial and personal matters will be handled according to your wishes and legal requirements. It's also important to select multiple backups in case your first choice is unable or unwilling to act when needed.

The Role of a Trustee

A trustee is responsible for managing the assets held in a trust. In a revocable living trust, often a key component of a well-designed estate plan, you (the trustmaker) will typically serve as the initial trustee, managing the trust's assets during your lifetime. You will also appoint a successor trustee to step in when you are no longer able to manage your affairs due to incapacity or death.

The trustee's duties include:

• Managing trust assets according to your instructions
• Distributing assets to beneficiaries
• Handling legal and financial responsibilities

It's essential to choose a trustee you trust, whether it's a family member, close friend, or a professional financial institution. They will have authority over assets owned by the trust, but not over accounts or property held solely in your name. To ensure comprehensive management of your estate, you may also need to appoint an agent under a financial power of attorney to manage non-trust assets during your incapacity.

Powers of Attorney: Financial and Healthcare

Powers of attorney are crucial legal documents in your estate plan. They authorize individuals (agents) to make decisions on your behalf if you are incapacitated. There are two main types of powers of attorney to consider:

Financial Power of Attorney

A financial power of attorney gives your agent the authority to manage your finances, such as paying bills, managing investments, and handling other financial matters. Your agent only manages the accounts and property that are not owned by your trust. It's important to choose someone responsible and capable of handling these tasks, whether it's a family member, trusted friend, or a professional institution.

Healthcare Power of Attorney

A healthcare power of attorney allows your appointed agent to make medical decisions on your behalf when you cannot. These decisions can range from selecting doctors and treatments to end-of-life care. Other related documents, like a living will, can specify your healthcare preferences. Be sure to choose someone who understands your values and will advocate for your wishes.

What Is an Executor?

Your executor, sometimes referred to as a personal representative, is responsible for carrying out the instructions in your last will and testament after your death. The executor's duties include:

• Managing the probate process (if necessary)
• Distributing assets according to your will
• Settling debts and taxes

For simple estates, you might appoint a family member or friend as your executor. However, for more complex estates, hiring a professional executor or fiduciary may be more appropriate. They will have the experience to handle intricate legal, financial, and tax matters, and can remain objective during emotionally charged situations.

Choosing the Right People for the Job

Selecting a trustee, agent, or executor is a significant decision. Here are some factors to consider:

• Trustworthiness: Choose someone responsible, reliable, and capable of carrying out your wishes.
• Experience: If your estate is complex, consider appointing professionals, such as attorneys or financial institutions, who have experience managing estates.
• Willingness: Ensure the person you choose is willing and able to take on the responsibility.
• Backup options: Always appoint alternate fiduciaries in case your first choice cannot serve.

Conclusion: Contact Us to Make the Right Choices

Choosing the right trustee, executor, and agents under powers of attorney is a critical part of your estate planning process. These individuals will be responsible for managing your assets and making decisions on your behalf. To ensure peace of mind, it's essential to carefully consider your options.

At The Robinson Advocacy Group, we can guide you through the process of selecting the best candidates for these important roles. Contact us today to schedule a consultation and ensure your estate plan is fully prepared for the future.