Estate Planning Documents – What Determines What?

As we discussed last month, there are a set of estate planning documents that are important while you are living. Likewise, there are others that control circumstances after you pass on.

We know that a Financial Power of Attorney and a Health Care Proxy appoint agents to control our financial affairs and our health care wishes.

What matters after death?

You appointed decision-makers in the event you become incapacitated. Similarly, you must also choose decision makers to carry out your wishes after you die.

Guardian

A guardian is the person who will take custody of minor children in the event they lose their parents. This will be the person who will fill the shoes of a parent. Obviously, this should be someone you trust.

Other factors to consider are where the guardian lives, if they have young children of their own, and if their values are like yours.

Executor

An Executor is the person who will take charge of your probate estate, determine what property your owned, who your creditors are, and protects your assets until your estate is distributed to your beneficiaries.

Your Executor should be geographically close and has the time to handle the role.

An Executor can expect to be in this role for a few years, and it can be time intensive. The job can require court filings and tax returns. Your Executor will work with accountants and attorneys to fulfill these obligations.

If you are choosing more than one Executor, take into consideration how the get along.

Trustee

The Trustee is the person who will oversee the administration of trusts you created during your life and at death.

One of the most important things to consider when naming a Trustee is the relationship between the Beneficiaries and Trustee, as this can lead to potential strife. Does the Trustee share the same financial

values as you? If your Trustee will be tasked with deciding on distributions to your children, will they make decisions in a manner you’d feel comfortable with, or would they be too strict or lenient?

The Trustee also needs to be able to devote the time to this role. The Trustee will serve until the date or timeframe determined in the Trust, and to follow the specific instructions outlined in the trust. 

Trustees are often required to submit court filings, trust accountings, and report on the trust performance to beneficiaries and other interested parties. You can determine compensation for the Trustee in the Trust document.

When meeting with an attorney to prepare or change your estate planning documents, they can ask questions to help you choose who would be best fit for these roles. Our estate planning attorneys will answer any questions and guide you through the process. Give us a call.