Estate planning gives people control over what happens with their property after they die. Instead of relying on state law to facilitate the transfer of assets to family members, people can choose their own beneficiaries. They can leave clear instructions to ensure that each beneficiary receives specific assets.
Making arrangements for property is important, but it is not the only consideration during estate planning. Testators also need to consider who might hold certain roles in their estate plan. The designation of appropriate people to fill critical roles is as important as planning for the distribution of property, if not more so.
What important positions do people need to address when establishing an estate plan?
1. Personal representative or executor
Testators drafting wills have the authority to choose who administers their estate. They can select someone they trust to act as their personal representative or executor.
That person oversees the probate process and distributes the decedent’s property according to their instructions. In cases where people rely on a trust rather than a will to guide asset distribution, the selection of a trustee can be an important component of estate planning.
2. A guardian for minor children
Parents often worry about what may happen to their children after they pass. If their children are still minors, they could end up living in foster care or with a family member who may struggle to meet the financial and emotional needs of the children.
Testators who are responsible for minors or adult children with special needs generally need to select an appropriate person to serve as a guardian. They may even want to name an alternate candidate in case the person they select isn’t available when their dependents need support.
3. An agent or attorney-in-fact
Thorough estate plans do not simply address death. They also include provisions for emergency scenarios. Powers of attorney and advance medical directives may provide testators with an opportunity to empower someone else to manage their affairs.
Choosing someone who is nearby, trustworthy and responsible can help ensure that people receive appropriate support if they cannot communicate their medical wishes or manage their financial affairs. Particularly if people choose to draft durable powers of attorney to address the potential risk of permanent incapacitation, choosing the right person to hold that authority is of the utmost importance.
Empowering the right people to key positions in an estate plan can be as important as making arrangements for valuable resources. People often need help ensuring that their estate plans properly protect themselves, their dependents and their legacy wishes.