People preparing to create or update an estate plan have many concerns to address. They have to contemplate who depends on them and what types of support they may require. They also need to consider their obligations, including their debts.
Often, people establishing estate plans focus primarily on the legacy that they leave. They decide who to name as beneficiaries and then allocate specific property to those people in a will or trust documents. However, estate planning is also about authorizing people to take action in certain circumstances.
There are several important positions of authority that a testator establishing or revising an estate plan may need to fill. What roles do testators need trustworthy people to occupy?
Personal representative
The executor or personal representative of an estate has an important role. It is their job to secure property, communicate with interested parties and oversee the probate process. The testator needs to choose someone who is ethical and competent enough to fulfill those responsibilities while prioritizing the best interests of the beneficiaries of the estate. Those who use a trust as their primary testamentary instrument may need to name someone to serve as trustee rather than focusing on the selection of a personal representative.
Guardian for minor children
Parents often have a more complex estate planning process ahead of them. They need to consider who can provide for their children’s needs and how to preserve an inheritance for them when they finally become adults. The guardian named in a will can take over the authority that a parent holds. They have an obligation to provide for the children and meet their needs until they become adults. Choosing a guardian requires the consideration of factors ranging from the bond that people have with the children to their living arrangements and current personal responsibilities.
Agent or attorney-in-fact
Estate planning can be as much about personal emergencies as it is about death. The best estate plans include living documents that take effect when the testator becomes incapacitated. An agent or attorney-in-fact has the authority to make medical decisions or handle financial matters on behalf of an incapacitated person. Those draft powers of attorney need to ensure they include the right terms in their document, including empowering someone competent and able to step up in an emergency.
Empowering the right people in an estate plan can be as important as including the right people as beneficiaries. Testators who think carefully about their relationships can authorize appropriate candidates to take action after their death or in the event of an emergency.