Hiring a professional fiduciary to manage an estate can offer several benefits, especially when individuals are looking for expert guidance, impartiality, and specialized services.
Here are some reasons why someone might choose to hire a professional fiduciary:
Expertise: Professional fiduciaries are experienced in estate planning, administration, and management. They possess a deep understanding of legal, financial, and administrative complexities, ensuring that the estate is managed effectively and in compliance with relevant laws and regulations.
Impartiality: Family dynamics and personal relationships can sometimes complicate estate management. Hiring a professional fiduciary can provide an unbiased and neutral approach, preventing potential conflicts of interest among family members or beneficiaries.
Specialized Knowledge: Fiduciaries often have specialized knowledge in areas like taxation, investment management, real estate, and legal matters. This expertise can help optimize the estate's financial performance, minimize tax liabilities, and navigate complex legal requirements.
Time and Effort: Managing an estate can be time-consuming and overwhelming, especially for individuals who lack the necessary expertise. A professional fiduciary can handle administrative tasks, paperwork, and other responsibilities, allowing the estate owner to focus on other aspects of their life.
Consistency: A professional fiduciary's role extends beyond the lifetime of the estate owner. They can provide consistency in management and oversight, ensuring that the estate's goals and objectives are upheld over the long term.
Peace of Mind: Hiring a professional fiduciary can provide peace of mind to the estate owner, knowing that their assets and wishes will be managed and executed in accordance with their instructions.
According to a 2020 Merrill Lynch report, 43 percent of Americans age 55 and older worry that they don't have an advocate to look out for their interests as they age. Yet only a third of this age group has a durable power of attorney.
Choosing a trustee is a critical decision retirees must carefully consider. Our fiduciary partners are responsible for managing trust assets, and carrying out the terms of the trust set forth in the trust document.
A Power of attorney is a legal document that grants someone the authority to act on behalf of another person. This document is commonly used by those who may not have physical or mental capacity to manage their own affairs. Our fiduciary partners can serve as power of attorney to make legal and financial decisions on behalf of clients.
An executor of an estate is someone appointed by the deceased person in their last will and testament to manage the assets that were included in the estate. The executor is responsible for carrying out the wishes of the deceased as outlined in their will and is responsible for ensuring that all debts and taxes are paid, that any assets are distributed correctly and that any remaining items are disposed of according to law.
Guardianship is a legal arrangement where an individual, organization, or institution is appointed by a court to manage the financial affairs and/or personal care of an adult who cannot do so themselves. This individual or entity is known as the guardian. Our fiduciary partners can serve as guardian for individuals who are unable to manage their own finances or make important decisions due to age, illness, or disability.
Make sure your meeting goes smoothy by having all of your information prepared ahead of time.
Here are some key items to include in your checklist.
Click on each one to read more.
Professional fiduciaries are often hired to fulfill final wishes. Write your wishes down ahead of time so that your fiduciary knows how you want your assets distributed upon your passing.
Depending on your current estate plan, your fiduciary may suggest updating beneficiary designations, or working with an attorney to create a will, trust and other healthcare directives. By entrusting these critical services to fiduciaries, retirees can have peace of mind knowing that their loved ones will be taken care of and their final wishes respected.
Often times, your professional fiduciary is responsible for making sure your final days are carried out in the way you have planned. During your meeting with your fiduciary, you should share your advance directive documents that give the appropriate direction for your care.
There are various types of advance directives, including living wills and health care powers of attorney. A living will specifies the types of medical treatments an individual wishes to receive or avoid, while a durable power of attorney designates someone as a healthcare proxy, granting them the authority to make medical decisions on behalf of the individual.
Documenting healthcare decisions in writing is crucial for elderly patients and their families. It eliminates any ambiguity or confusion that may arise during critical moments and ensures that medical care aligns with an individual's values and preferences. It also lightens the burden on family members, who may otherwise be left with difficult decisions to make on their loved one's behalf.
Your professional fiduciary needs to have as much information as possible about any medical conditions and medications you are taking. Having this information before hand helps them make better decision about your care if they are called upon to do so.
The more information you can provide to your professional fiduciary the better. Providing this information during your initial meeting will allow them to ask proper follow up questions and do any research they need to while they are creating your plan.
The more prepared you are for your initial meeting with your professional fiduciary, the more they can be a support for you. If you already have all of your legal documents in place, make sure to bring them to your initial meeting. If you don't have these documents yet, you can speak to one of our elder law attorneys who can help you draft them.
You will need to have information regarding your income, expenses, assets, and liabilities.
These can include statements from your bank, pension statements, utility bills, mortgage statements, and Social Security documents. We need to have a comprehensive understanding of your financial situation so that we can make choices that are the best for you.
Having all of this information ready for your initial meeting will help us serve you faster and allow you to focus on more important aspects of your life.
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