A fiduciary is an institution or person who can act on your behalf. When you choose a fiduciary, it has to be someone that you trust. He or she will have a legal obligation to be honest and to act on your behalf.
Fiduciaries can have a role in your estate before and after your death. This person can be an attorney, banker, financial advisor, real estate agent and more. If you’re unsure about the role a fiduciary carries, it’s important to remember that you can have multiple fiduciaries and they can fulfill different roles. Here are three of those roles.
Your Child’s Guardian
In the unfortunate event that you die while your children are still minors, there must be someone that can take care of them. To choose someone who cares for your kids and to make choices on their behalf, you have to have a lot of trust for the person. Normally, you would add the name of the person you want to take care of your children in your will.
Even if you are married, the two of you must have someone named for your children. In the unfortunate event that both of you pass away, you need to know that your children have an advocate and someone to care for them.
Your Health Care Agent
Your healthcare fiduciary is someone that can make medical decisions on your behalf. This is especially important if you are incapacitated for any reason. A power of attorney or durable power of attorney can make all healthcare decisions for you if you cannot make them for yourself. In some instances, you can have an institution as your fiduciary, but not in the case of medical care. This person can also not be a healthcare provider.
Your Financial Advisor
Your fiduciary must be someone that you trust. When you die, most of the fiduciary responsibility is on your executor or trustee. You may want your executor or trustee to have some financial background. At the beginning of your estate plan, you may use a financial firm or a bank to provide you with financial assistance.
Fiduciaries are a crucial part of your estate plan. They are anyone who you can count on to make decisions on your behalf after you die. To find out more about fiduciaries and how to choose someone that you trust, consult with an estate planning lawyer, such as from Citadel Law Firm, as soon as possible.