When estate planning clients come to me, they have many decisions to make, but by far the most important decision is the selection of their trustee or executor.
This position, which we will generically call a fiduciary, is the most important because the fiduciary is entrusted with the power to control and distribute the assets of the Decedent’s estate to the beneficiaries. A fiduciary must be financially responsible, look out for the best interest of the beneficiaries, and ensure the Decedent’s wishes are fulfilled.
The most common occurrence we see in our practice is for clients to list their child/children in the fiduciary role. This may be logical and, often, the best choice for many families, but all families, clients, and the relationships between them are different.
Here are some common situations where choosing a child or family member would not work:
· Client does not have a family to serve.
· Family member is not financially responsible.
· Multiple children and do not want to choose between them.
· Fiduciary choice is also a beneficiary.
· Does not want to burden the family with duty.
· Concerned about fighting between the beneficiaries.
· Would like to keep assets in trust for an extended period.
All of these situations can be resolved by appointing a private fiduciary in your documents.
Private fiduciaries are licensed and bonded professionals who are registered with the State of California and have passed an exam to prove their ability to serve as a fiduciary. Much like corporate fiduciaries who work at banks and other financial institutions, private fiduciaries are often independent operators.
Estate planning involves many choices, but choosing a fiduciary is the most important. In your consultation, ask our attorneys whether a private fiduciary is right for you. Many clients have told me it was the best decision they made because it assures them their wishes are followed without worrying about the actions or inactions of their family members.
