Part of the estate planning process is choosing who will serve as your representative in a number of different capacities. Your choice in representatives is just as important as your decisions on how your wealth will be distributed and who it will be distributed to.
After all, the responsibility to effectively carry out your carefully crafted
wishes will be on the individuals you choose as your representatives or fiduciaries…
Personal Representative (PR): Your PR is the person who is charged with presenting your estate plan to the probate court and ensuring that your estate is properly administered. Throughout the administration of a probate case, a PR may be charged with making important decisions such as whether assets should be sold before distribution and how to divide your wealth fairly among your beneficiaries. Decision Tip: Choose someone you trust to be fair to your loved ones while remaining loyal to your wishes. Your PR will be dealing with your affairs during the time immediately after your passing. Thus, you should choose someone who has the ability to remain focused yet empathetic during this emotionally difficult time for your family.
Trustee: If you set up a trust, your Trustee is the person you appoint to manage your trust and the assets within it. This person could potentially be serving in this fiduciary capacity for several years and will have to deal with your beneficiaries and loved ones regularly. Depending on the terms of your trust, your Trustee may even be in charge of making sure your beneficiaries are living comfortably and that the light bill is paid! The amount of responsibility a Trustee carries can be exponential. Decision Tip: Choose someone you feel will get along with your beneficiaries while still complying with their duties pursuant to your trust. This person should also be someone who is not easy manipulated or persuaded, but rather is equipped with plenty of intellect and emotional intelligence. It is also important to choose someone who is in good health as again, this may be a role they serve in for several years.
Health Care Surrogate (HCS): Your HCS is the person in charge of making health care decisions on your behalf should you be unable to make them for yourself. It is your HCS who will have the authority to execute (or choose not to execute) a Do Not Resuscitate order. Your HCS will also be the one to authorize (or not authorize) your doctors to “pull the plug” or to administer food, water, or pain medications. This person may even at some point be put in the position to decide whether to move forward with some kind of surgical procedure. Decision Tip: Choose someone who will respect your wishes and desires regardless of their emotional perspective. This person should be able to think as clearly as possible under pressure. Keep in mind that this person may also be dealing with your emotional family members.
Power of Attorney (POA): A Durable Power of Attorney is a very powerful document that authorizes an individual (your POA) to handle your finances during your lifetime. This person will have the ability to access your bank accounts, manage your bills, and handle anything finance related. Decision Tip: Choose someone you can wholeheartedly trust! Remember that this person will essentially have a piece of paper that empowers them to do what they please with your assets.
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The general idea to keep in mind is to choose wisely. DO NOT make your choices and nominations based on guilt or the feeling that you are supposed to choose someone because they are your close relative! You will do your family a disservice if you choose an individual to serve as your representative solely because they are your brother, sister, child, or even spouse- and not because they are qualified. And if you don’t have anyone you would trust to serve in these important roles, there are plenty of professional fiduciaries available in our community.