Pick A Trustee, Executor, and Agent Under a Power of Attorney
Corona Estate Planning Attorney Joseph Hudack says that while the term “fiduciary” has a long legal history, according to estate planning attorney Joseph Hudack, it often refers to someone who has a legal obligation to act in another person’s best interests. Fiduciaries include people who act as trustees, executors, and agents. In your estate plan, when you choose trustees, executors, and agents, you’re choosing one or more people to act in your and your beneficiaries’ best interests and in accordance with your instructions.
Fortunately, having a basic awareness of what each of these phrases implies and what factors to take into account when making decisions will greatly improve the effectiveness of your estate plan.
Trustee
Because it is simply the ideal method for fulfilling the majority of people’s objectives, a revocable living trust is frequently the focal point of a well-designed estate plan. You will frequently act as the initial trustee of a revocable living trust and carry on running the trust’s assets as you always have.
Your successor trustee will be in charge of ensuring that your assets are distributed and managed in accordance with your preferences after your passing or while you are incapacitated. It’s best to have a reliable individual or financial institution handle this extremely significant job, just like each of the following parties engaged in your estate planning.
In order for your trustee to know exactly how to manage a variety of situations that may emerge during asset distribution, it is crucial that your trust’s language be as explicit as possible. Finally, it’s important to fully fund your living trust because your trustee will only have jurisdiction over the assets that are included in the trust and not the rest of your inheritance.
Powers of Attorney
Your estate plan’s power of attorney names people to represent you in making choices if you become unable to do so yourself. There are several distinct kinds of powers of attorney, each with unique clauses. We can assist you in selecting the types of powers of attorney you’ll need based on your present position and long-term objectives. Different powers of attorney can handle a broad variety of situations. Two typical types to include in your estate plan are as follows:
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Financial Powers of Attorney
With the use of a financial power of attorney, someone else can make financial decisions on their behalf, such as buying life insurance or taking money out of your accounts to pay your bills. An agent is a term used to describe a person who performs tasks as directed by a power of attorney. An organization, such as a reputable business, can also be mentioned while discussing financial decisions. Remember that these services will be paid for by trust corporations.
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Health Care Powers of Attorney
Health care powers of attorney can be used to make decisions about the type of treatment you receive or who will be giving it, among many other particular actions that can be done regarding your medical requirements.
Executor
Executor, This might be the exact same organization or person as your trustee, depending on your preferences. The title “personal representative” may also be used to refer to this position, although the meaning is the same.
Some people opted to use a paid executor. This person typically has nothing to benefit from your will and is frequently the best option if your wealth is sizable and will be distributed among numerous recipients. Of course, relatives and friends can also volunteer, but before asking them to help, it’s crucial to think about how much effort is involved.
Selecting an executor is important because the position can be demanding and may involve meeting deadlines set by the court. To organize your taxes, they’ll likely need to hire a CPA, as well as a lawyer to help with the procedure. Attorneys, appraisers, mediators, or other experts will definitely need to be involved if there is a dispute.
It can be advantageous to choose your spouse or another close family member because they may already be aware of your assets and can more easily ensure that your intentions are carried out. They might not be sufficient at the time due to the time required and the nature of some assets, though.
Get in Touch With an Estate Planning Attorney Today
Please let us assist you in choosing your trustee, agent, and executor in a straightforward and stress-free manner. Once you’ve made these decisions, you can relax knowing that your estate plan is secure no matter what the future holds. We are proudly serving California and Arizona. Contact Hudack Law today at (877) 314-4309 Toll-free, please visit areas of service (open link in a new tab) or hudacklaw.com (open link in a new tab) to make an appointment.