An estate plan is a series of legal documents related to the wishes of the creator. For example, a will is a legal document that outlines how assets should be divided upon the testator’s death. Estate plans also typically contain trusts, powers of attorney, letters of instruction and much more.
Nonetheless, documents are only one part of the process. There are people tasked with ensuring that the instructions of those documents are fulfilled. Individuals in such roles are called fiduciaries. What types of fiduciaries are generally involved in estate planning?
The executor of the estate
The executor is responsible for administering the will according to the wishes of the testator. They cannot stray from these wishes or show favoritism toward one beneficiary over another. They also have a duty to act with due care. They must ensure that debts and liabilities are paid and that assets are properly appraised.
Trustees
Trusts are legal instruments used to manage assets. They are a common part of estate planning. The person tasked with managing the assets held in a trust is called a trustee. The trustee must distribute assets according to the precise terms of the trust. Often, this is an ongoing role that lasts for several years after the testator has passed away. For example, the trustee may be entrusted with ensuring that kids receive an education fund once they reach college age.
Powers of Attorney
Powers of attorney are legal documents that give agents the authority to make decisions on behalf of the creator. Often, these decisions relate to healthcare or medical issues. Agents must act in the best interests of the creator and in accordance with the instructions set out in the power of attorney documents.
Fiduciaries have a key role, and they must adhere to their duties. If you suspect that a fiduciary has failed in these duties, then you can raise a challenge. Seek legal guidance to find out more about how to do this.