The use of private fiduciaries has become more and more common in recent years. Too often people put off creating an estate plan because they do not know who to task with the important jobs of managing their finances if they become incapacitated, overseeing the distribution of their estate after they pass, or making important medical decisions if they are unable to make them, among other issues that may arise.
It is understandable to be cautious when appointing a trustee, power of attorney, or health care agent as this decision can have major implications. Most people start the decision-making process by thinking of friends or family that they trust. However, these people may not have the time to dedicate to the job, may not be financially savvy or knowledgeable about medical issues, and may not get along well with the beneficiaries or other people that would be involved.
Fortunately, there is an alternative that more and more people are turning to. It is possible to select a professional to act in some or all of the previously listed roles. These professionals are knowledgeable about the issues that arise with aging and death and are generally very good at looking after their clients’ interests. In addition, they have administered many estates so they are less likely to make the mistakes that a novice may commit as they “learn as they go.” Perhaps, most importantly, they are not a part of family dynamics, so they bring a fresh perspective to the fiduciary duty allowing them to focus on the decedent’s wishes rather than the sometimes-difficult family dynamics. These advantages make it worth at least considering a professional private fiduciary when creating an estate plan.