Creating an estate plan can be an overwhelming task. It can become even more challenging when it comes time to pick people to take on required roles. Whether it’s naming an executor, trustee, or guardian for your children, these decisions can weigh heavily on you because you want to feel confident you are making the best choices. But what if you genuinely don’t have anyone you feel confident in? Don’t worry; you’re not alone, and there are solutions to this problem.
Understanding the Roles in an Estate Plan
Before diving into what to do when you don’t have trusted individuals to name for roles in your estate plan, it’s helpful to understand what each position involves.
The role that often comes to mind first is that of the executor. The executor is the individual who will manage your estate after you pass away, carry out your wishes, pay your debts, and distribute your assets according to your wishes.
Many people set up a trust as part of their estate plan. If you have a trust, the trustee is the person who would manage the assets in the trust for the beneficiaries.
You should likewise consider naming a guardian if you have minor children, a special needs adult, or an aging parent who might require legal supervision in your absence. A guardian is the person who would be responsible for their care after you die.
The Importance of Trust in Fiduciary Relationships
Trust is the cornerstone of any relationship, including fiduciary relationships like the ones described above. Therefore, trusting the person you choose to hold these positions is paramount.
Each fiduciary role requires the individuals in them to act in the best interest of beneficiaries or wards, manage assets wisely, and make tough decisions. The good news is you are not out of luck if you don’t have anyone who fits the bill. There are alternative ways to fill these roles.
Professional Fiduciary
One option is to hire a professional fiduciary. Fiduciaries for hire are individuals or institutions, such as banks or trust companies, that manage estates and trusts for a fee. They have experience handling complex financial and legal matters and are legally bound to act in the best interests of the people they protect.
The benefits of professional fiduciaries include their professional expertise, ability to remain impartial, which can help avoid potential family conflicts or keep them in check, and the stability they provide. However, there are also drawbacks, such as the higher costs associated with their services and the lack of a pre-existing personal relationship or understanding of family dynamics.
Trust Company
Trust companies specialize in managing trusts and estates. They can serve as executors or trustees and often have vast resources and experience to handle complex estates.
The advantages of using a professional trust company include professional asset management, access to a team of experts (which can change over time as people come and go from a company), reliability, and consistency. However, there are also disadvantages to hiring a trust company, such as the higher cost compared to individual fiduciaries and the absence of the personal touch you would generally get with an individual you personally selected.
Lawyer or CPA
Where you have a longstanding relationship with an attorney, preferably an estate planning attorney, or with a certified public accountant (CPA) who understands your financial situation and personal wishes, that person might be an excellent candidate to serve as executor or trustee in your estate plan. The benefits of choosing a lawyer or CPA include their professional knowledge of legal and financial matters and familiarity with your situation. However, there are also potential downsides, such as higher fees and limited availability compared to trust companies, which have a team of people.
Finding a Suitable Guardian
Choosing a guardian for your children, special needs child, or parent can be one of the most difficult decisions you make in creating your estate plan, especially if you don’t have anyone you trust implicitly. One strategy is expanding your search; sometimes, the perfect guardian isn’t immediately apparent. So, consider distant relatives or close friends who might share your values and parenting style when looking for options.
But before making any final decisions about who you will name as a guardian in your estate plan, talk to potential candidates. Have open and honest conversations with them about your intentions of naming them, your expectations, the needs of the person they would be a guardian for, and their willingness to take on such a responsibility.
Consider also naming multiple guardians, such as a couple. This approach would combine the strengths of two people versus one to provide a stronger support system. Moreover, having more than one guardian adds a method for checks and balances. In some situations, you might opt to appoint a professional guardian experienced in child care and welfare. Selecting an alternate guardian is yet another way to protect your loved ones when you are no longer around. More about that follows in the next section.
Having a Backup Plan
It’s wise to have backup choices for all the positions in your estate plan. Life is unpredictable, and having a second or even a third option keeps your estate plan effective, even if your first choice is unavailable or unable to serve.
Of course, you should make it a point to review your estate plan every three to five years or any time there is a life passage, such as a birth, death, marriage, or divorce, that could potentially affect the decisions you have made previously. As long as you are living, you can change your estate plan.
Drafting a Letter of Instruction
A letter of instruction isn’t legally binding. However, it provides valuable guidance to the individuals managing your estate. More specifically, it can include personal wishes, specific instructions, and relevant information not included in your will. Including a letter of instruction can help ease the burden on your chosen executor, trustee, or guardian, especially if they’re professionals without deep knowledge of your personal life or the lives of the people and affairs they must oversee.
The Value of Reviewing and Updating Your Estate Plan Regularly
Your estate plan isn’t a “set it and forget it” task. Regularly reviewing and updating your plan is critical, especially if your circumstances or relationships change. Doing so keeps your choices relevant and effective.
Communicating Your Intentions for Picking Fiduciaries in Your Estate Plan
Once you’ve made your decisions, communicate them again clearly to the people involved, even though you should have spoken to them already about your intentions of naming them. Discuss your expectations and provide them with any necessary documents or information they should keep in their possession. This transparency helps prevent confusion and enhances understanding of fiduciaries’ roles and responsibilities.
How to Find a Seattle Estate Planning Lawyer for Help Filling Important Roles in Your Estate Plan
Feeling like you don’t have anyone you can trust to name for key positions in your estate plan can be upsetting. Still, it’s important to understand that it is not an insurmountable obstacle. By considering professional fiduciaries, trust companies, lawyers, and CPAs and being thorough in your selection process, you can find candidates you will feel confident in, giving you the peace of mind a comprehensive estate plan offers.
Remember, the goal is to pick people who will be adept at managing your estate according to your wishes and caring for your loved ones as you envision. By exploring the various options for fiduciaries available to you and making informed decisions, you can create an estate plan where you can place your trust, even if you started the process feeling like you did not have anyone to trust.
At Elise Buie Family Law, our team of estate planning lawyers knows how important it is to have an estate plan in place that you and your loved ones will be able to feel confident about. We have extensive experience and skills in drafting estate plans that fit our many clients’ unique circumstances and can create one that fits yours.Call our Seattle office today or book a call with us..
