Choosing the Right People for the Most Important Roles in Your Plan

Estate planning is not just about documents—it’s about people. The individuals you choose to carry out your wishes will have a direct impact on how smoothly things go when you’re no longer able to make decisions yourself. That’s why selecting the right executor, trustee, and power of attorney is one of the most important steps in the planning process.

In this article, we’ll break down the roles, what qualities to look for, why backups matter, and when it might make sense to consider a professional fiduciary.

Duties and Responsibilities of Each Role

Executor

An executor is named in your Will to handle your estate after your death. Their job is to:
– Submit your Will to probate
– Inventory and manage your assets
– Pay debts, taxes, and final expenses
– Distribute assets to your beneficiaries
It’s an administrative role that requires organization, attention to detail, and the ability to communicate with heirs and professionals like lawyers and accountants.

Trustee

A trustee is responsible for managing and distributing assets held in a Trust. This may include investments, real estate, or funds set aside for children or grandchildren. Their duties can last for years and include:
– Managing trust assets responsibly
– Following the terms of the trust document
– Providing periodic reports to beneficiaries
– Making distributions according to the trust’s terms
A trustee’s job can be more complex than that of an executor, especially if the trust is ongoing or has multiple beneficiaries.

Power of Attorney

A Power of Attorney (POA) is someone you appoint to handle financial matters if you become incapacitated. Their authority can include:
– Paying bills and managing bank accounts
– Handling real estate or business matters
– Filing taxes
Unlike executors and trustees, a POA acts during your lifetime. Their role ends when you die or if you revoke their authority.

What to Look For: Trustworthiness, Availability, Skills

Choosing the right person is less about professional expertise and more about personal qualities. Key traits to consider include:

– **Trustworthiness**: Above all, you need someone you can trust to act in your best interest and carry out your wishes.
– **Responsibility and Organization**: Your chosen agent will be managing assets, paying bills, and communicating with others. Choose someone who is reliable and organized.
– **Availability**: A person may be trustworthy but too busy, live too far away, or be in poor health. Make sure they have the time and capacity to serve.
– **Financial and Legal Aptitude**: While they don’t need to be a lawyer or CPA, they should be comfortable with financial tasks and decision-making.
– **Communication Skills**: Executors and trustees often need to manage family expectations and conflicts. Someone who can navigate sensitive conversations is ideal.

Backup Planning and Co-Fiduciaries

Even the most reliable person may be unavailable when the time comes. That’s why naming backup fiduciaries is crucial. Your Will or trust should include:
– **Primary Fiduciary**: Your first choice
– **Alternate/Successor Fiduciary**: In case the primary person can’t or won’t serve

You can also consider appointing **co-fiduciaries**, where two or more people serve together. This can be helpful when:
– You want checks and balances
– You have two adult children and don’t want to choose one over the other
– One person has legal or financial skills, while the other has family or personal insight

However, co-fiduciaries can also lead to delays or disagreements if they don’t get along or communicate effectively. Weigh the pros and cons carefully.

Professional Fiduciaries as an Option

If you don’t have a family member or friend who fits the bill, you’re not alone. Many people choose to name a **professional fiduciary**—such as an attorney, accountant, or corporate trustee.

Advantages include:
– **Expertise**: They know the legal and financial requirements of the role.
– **Objectivity**: Professionals make decisions without family bias or emotion.
– **Continuity**: A corporate trustee won’t become ill, move away, or pass away.

The main downside is **cost**. Professional fiduciaries typically charge fees based on a percentage of the estate or trust. But for complex or high-value estates, the peace of mind may be worth it.

You can also name a professional as a co-fiduciary to work alongside a trusted family member.

Final Thoughts

Choosing the right people to carry out your estate plan is just as important as creating the documents themselves. Whether it’s an executor to manage your estate, a trustee to handle a long-term trust, or a power of attorney to step in during your lifetime, these roles require thoughtful consideration.