Choosing Wisely It is important to name reliable individuals as (1) guardian for minor children or an incapacitated family member in your will, (2) executor of your will, (3) successor trustee of your living trust (in the event of your disability or death), (4) agent under your power of attorney for property, and (5) agent under your power of attorney for health care.
The person named in each capacity is considered to be a “fiduciary.” It is wise to name successive individuals and/ or qualified institutions to serve in the event your initial choice for fiduciary is unavailable. Many clients opt to have one fiduciary acting at any given time in order to avoid disputes that can arise when co-fiduciaries are appointed (and must act unanimously). Fiduciaries are advocates for your wishes. Fiduciaries for your property settle debts, account for activity to beneficiaries, and deal with assets. Your health care fiduciary communicates your health care wishes to your doctors and nurses.
Some factors to consider when choosing a fiduciary are:
- Adult (18 years or older) who is a U.S. resident and not a convicted felon;
- Responsible and organized;
- Trustworthy and reliable;
- Accountable and willing to share information;
- Financially astute and willing to retain advisors when needed;
- Available and accessible (e.g., can arrive quickly at a medical facility in the event of emergency);
- Independent;
- Financially stable and secure;
- Able to make emotionally charged decisions quickly;
- Able to advocate for your wishes;
- Holds values which are compatible with your values;
- Life experience and wisdom;
- Willingness to take on responsibility; and
- Ability to withstand pressures from beneficiaries or third parties.
If you cannot identify a qualified individual in your circle of family and friends, then consider a bank or trust company for your first choice. In any event, we recommend that clients name a bank or trust company as a backup fiduciary to serve if all of the named individuals do not act. The institution does not charge unless it is called upon to act.