There are several ways to manage an Estate after the passing of a loved one. In most cases, this process involves gathering important information, managing financial affairs, and distributing assets and belongings to family members. A Fiduciary or Executor may be tasked with managing these various responsibilities on behalf of the deceased.
A fiduciary is someone who monitors assets for you, with your best interests in mind. This may be a financial institution, a property management company or a trustee. Fiduciaries are not only an important part of life; they are also essential during your disability and after your death. During the estate planning process, you must take care when choosing your attorney-in-fact, health care agent, successor trustee, or estate executor.
A fiduciary is someone who monitors assets for you, with your best interests in mind. This may be a financial institution, a property management company or a trustee. Fiduciaries are not only an important part of life; they are also essential during your disability and after your death. During the estate planning process, you must take care when choosing your attorney-in-fact, health care agent, successor trustee, or estate executor.
Your selected advocate must be organized and able to manage finances. The most complicated of fiduciary duties revolve around managing your financial assets if you become disabled as well as after your death. An estate executor or successor trustee must handle every single asset and debt that you have. This process requires organization and attention to detail.
Your fiduciary may have to work with family members who are in disagreement over the state of your final affairs. Pick a fiduciary that can remain emotionally and intellectually apart from issues and make reasonable, rather than emotional, decisions. The ability to deal with and put aside family arguments after the death of a loved one is perhaps the hardest duty your fiduciary will face. Choose someone who has the strength to accomplish this feat.
An estate executor is responsible for settling decedent estates and distributing inheritance property to designated beneficiaries. Estate administration can encompass everything from making funeral arrangements to selling real estate. Duties vary depending on the types of inheritance property and whether the estate must undergo probate or is protected by a trust. In most cases, the estate executor will require help from a probate lawyer or estate planner. Settling probate estates is generally more time-consuming than settling estates protected by a trust. Estate management can be more complicated when decedents die without executing a last will and testament.
The probate process can take several months to complete. Estate administrators must secure and inventory personal property. Valuable assets such as real estate and automobiles must be appraised to determine the date-of-death value. All outstanding debts must be paid and a final tax return filed. Once estate matters are settled, inheritance property is distributed.
Decedents designate heirs and beneficiaries within their Will. If no Will exists, distribution of assets occurs based on state probate law. Property is usually transferred to the decedents surviving spouse or direct lineage heirs such as children, siblings, or parents. Some states require estate executors who are managing probate estates to obtain court confirmation. This means that all transactions must be presented to the court for approval. Other states allow estate administrators to manage the estate without court approval. Additionally, many states require estate executors to become bonded because they act as a fiduciary. By law, estate executors must be at least 18 years of age and never convicted of a felony.
Individuals should give careful consideration when designating an estate administrator. Sadly, death often brings out the worst in people and can lead to family squabbles over who should receive inheritance gifts. Heirs who feel slighted or were left out of the Will can contest the Will, which will prolong the probate process and add additional legal expenses to the estate.
When heirs contest a decedent’s last Will they are responsible for legal fees. If a judge rules in their favor, the estate may be required to reimburse legal fees. Contesting a Will often causes financial hardship to the estate and reduces the amount of inheritance cash available. When possible, estate executors should strive to reach an amicable agreement to prevent the Will from being contested. Individuals who choose to disinherit an heir from their Will should include a disinheritance clause. Stating the reason for disinheritance can lessen the chance of having the Will contested. When family strife exists, individuals should consider retaining the services of a probate attorney to manage estate settlement duties. Heirs are often less inclined to initiate a lawsuit when lawyers are appointed to manage the estate.
Individuals can engage in estate planning strategies which allow certain assets to avoid probate. These can include life insurance policies, retirement accounts, checking and savings accounts, and investment portfolios. It is important to advise estate administrators of the location of important documents and provide a copy of the last Will. When records are stored in a safe deposit box, a key should be given to the probate executor. It is also smart to provide copies of real estate deeds, automobile titles, and life insurance policies.
Individuals should update their Will when major changes occur. These might include buying or selling real estate, adding new heirs, or taking out individuals previously named within the Will. Many people procrastinate about estate planning. However, dying without a Will prolongs the probate process and places additional duties on the appointed estate executor. Taking time to put affairs in order is one of the greatest gifts anyone can leave their loved one.
The difference between a Fiduciary and Executor of Estate comes down to the scope of responsibilities associated with each title. A Fiduciary refers to any individual acting on behalf of another, and in Estate Planning this often means in a legal capacity. An Executor, on the other hand, is a much more narrow responsibility. Executors can only act on the terms laid out in a Will.
Fiduciaries can encompass a wide array of responsibilities in the Estate Planning process, though they commonly refer to Trustees. Trustees manage the assets within a Trust on behalf of the Trustor (or, person who created the Trust). There is some overlap between a Fiduciary and Executor relating to how they manage assets on behalf of another. All Fiduciaries, including Executors, must act in the best interest of the individual they represent at all times.
A Fiduciary Trust works by holding assets on behalf of the Trustor, as a new legal entity. The Trust is then managed by a Fiduciary, called a Trustee, who acts according to the terms of the Trust. The exact fiduciary responsibilities will vary depending on the goal and structure of the Trust. Trusts can be utilized for a number of financial purposes while an individual is still alive, for example, to protect assets from creditors or provide long-term financial support to a child. Similarly, Trusts can also be used as part of an Estate Plan to help designate inheritances, set aside charitable contributions, or more.
The Fiduciary of a Trust is the Trustee, who is tasked with overseeing the management of property and assets within the Trust. Simply put, a Fiduciary is someone who acts on behalf of another person, often in a legal or financial capacity. In the case of a Trust, this involves following the wishes of the Trustor and acting in the best interest of the Beneficiary.
A Fiduciary role is often associated with a certain level of responsibility and care. The individual in this role is required to put the best interest of the client, which in this case would be the Trustor, before their own interests. There are numerous fiduciary roles involved in Estate Planning, such as an Executor of Estate. The Executor fiduciary duty to beneficiaries is to follow the terms laid out in the Last Will and Testament. By acting on behalf of the deceased, the Executor upholds a fiduciary responsibility.
A Fiduciary can be a beneficiary, though this is not always recommended. This situation typically occurs when a parent names an adult child as a Trustee, but also sets aside an inheritance for them. The child typically must fulfill their responsibilities as a Fiduciary before receiving their final inheritance. When a Fiduciary is named as a Beneficiary, difficulties may arise. If there is discontent within the family over inheritances, other family members may challenge the Estate Plan or the Fiduciary. Family members may also intervene if the Fiduciary is thought to be increasing their inheritance.
While a Beneficiary can serve as a Fiduciary effectively, and with no issues this arrangement is not for everyone. Another option is to work with a Professional Fiduciary, which you can learn by contacting legal firm in Utah.
Fiduciaries are held to high professional standards when acting on behalf of a Trustor, or anyone else. Below are some general Fiduciary responsibilities in Trusts of an Estate:
The exact role of a Trustee can vary slightly depending on the type of Trust and the assets involved. Although, there are certain fiduciary duties that can be expected when serving as a Trustee:
As previously mentioned, there are numerous fiduciary roles within Estate Planning. Anytime an individual acts on behalf of another person, whether that be for legal, financial, or personal purposes, a fiduciary role is being assumed.
For example, a Guardian, Conservator, and Executor of Estate are all considered fiduciary duties in Estate Planning. While these roles may not involve the same type of expertise as a Trustee, they all demand a certain level of care to be handled correctly.
If you are the owner of a vast estate, hiring good lawyers to establish an effective plan for you can give you peace of mind. It can also provide a certain degree of relief because you know that you have arrested a problem that will surface at a time when you can do nothing to resolve it.
Here are some of the best things that you need to consider when dealing with your estate plan:
Estate planning involves legal matters and the best people who can do it effectively are the ones who have the necessary qualifications to make it happen. Don’t ever attempt to do it yourself, as it will only mean trouble and thousands of dollars in court litigation expenses if it does not become a legal document. You should remember that invalid documents are not honored anywhere.
You should designate a guardian for your young sons and daughters. If you won’t do it, a judge will. He has the authority to appoint somebody who will take care of your children in case you die unexpectedly. Designating a guardian for your children can help to prevent your qualified relatives from fighting over the right to become your children’s lawful guardian. You also need to assign a backup guardian as a precautionary measure just in case your first choice can’t serve for any reason.
It is always good to do estate planning while your wits are still intact. A mentally incapable person can no longer execute a will or estate plan. This makes life harder for you and your loved ones, most especially if they are still minors.
You should furnish your attorney with the necessary documents and information to make your estate plan serve its purpose. These documents include deeds to your properties, divorce documents, shareholders agreements, and prenuptial agreements. Your failure to supply these documents can result in the failure of your estate plan.
You need to be open and honest to your lawyer about your plan. This will make things easier for him to construct, and make your plan work towards your intended goal. Do not withhold important information from him, such as a previous estate plan or plans that you intend to override with a new one. This will help to set things in their proper order, and avoid legal battles between your heirs.
Letting fiduciaries know of their appointment can help to ensure that the estate plan is in place. Assigning a fiduciary who doesn’t know about his appointment is disadvantageous to the estate plan. It can also create more problems if the designated person is not willing to serve or can’t be found.
You may not know it, but a Revocable Living Trust needs complete funding to prevent your assets from ending up in probate.
If you fail to review your plan year after year, chances are some conditions may not be applicable anymore. You should see to it that your plan makes sense when it is needed. This will ensure that things are in their proper place at the proper time to avoid legal issues.
Choosing the fiduciaries that can get along well with your beneficiaries is one of your best moves you can do to prevent the parties from future legal confrontations. They are supposed to be in good terms with one another. It is but logical to choose a fiduciary that your beneficiaries honor, respect and get along well with for your own peace of mind. You may need the expert advice of your lawyer to help you find the best trustee for your beneficiaries. Just be honest with him and things will work out fine.
These are some of the most important steps you can take to make an effective estate plan. They can work for you and it is advisable to contact the service of an attorney in Utah.
There are several ways to manage an Estate after the passing of a loved one. In most cases, this process involves gathering important information, managing financial affairs, and distributing assets and belongings to family members. A Fiduciary or Executor may be tasked with managing these various responsibilities on behalf of the deceased.
A fiduciary is someone who monitors assets for you, with your best interests in mind. This may be a financial institution, a property management company or a trustee. Fiduciaries are not only an important part of life; they are also essential during your disability and after your death. During the estate planning process, you must take care when choosing your attorney-in-fact, health care agent, successor trustee, or estate executor.
Every fiduciary that you name must be loyal to you and to your heirs. You are placing a great deal of responsibility into the hands of your chosen agent, and you must be sure that person will act honestly in all actions. It is against the law for any fiduciary to use your assets for his or her gain.
You must also choose a fiduciary you and your family can rely on. Your agent must have the time and willingness to handle the matters you have asked of him or her. Your family must be able to count on the chosen fiduciary completing all assigned duties.
Your selected advocate must be organized and able to manage finances. The most complicated of fiduciary duties revolve around managing your financial assets if you become disabled as well as after your death. An estate executor or successor trustee must handle every single asset and debt that you have. This process requires organization and attention to detail.
Your fiduciary may have to work with family members who are in disagreement over the state of your final affairs. Pick a fiduciary that can remain emotionally and intellectually apart from issues and make reasonable, rather than emotional, decisions. The ability to deal with and put aside family arguments after the death of a loved one is perhaps the hardest duty your fiduciary will face. Choose someone who has the strength to accomplish this feat.
An estate executor is responsible for settling decedent estates and distributing inheritance property to designated beneficiaries. Estate administration can encompass everything from making funeral arrangements to selling real estate. Duties vary depending on the types of inheritance property and whether the estate must undergo probate or is protected by a trust. In most cases, the estate executor will require help from a probate lawyer or estate planner. Settling probate estates is generally more time-consuming than settling estates protected by a trust. Estate management can be more complicated when decedents die without executing a last will and testament.
The probate process can take several months to complete. Estate administrators must secure and inventory personal property. Valuable assets such as real estate and automobiles must be appraised to determine the date-of-death value. All outstanding debts must be paid and a final tax return filed. Once estate matters are settled, inheritance property is distributed.
Decedents designate heirs and beneficiaries within their Will. If no Will exists, distribution of assets occurs based on state probate law. Property is usually transferred to the decedents surviving spouse or direct lineage heirs such as children, siblings, or parents. Some states require estate executors who are managing probate estates to obtain court confirmation. This means that all transactions must be presented to the court for approval. Other states allow estate administrators to manage the estate without court approval. Additionally, many states require estate executors to become bonded because they act as a fiduciary. By law, estate executors must be at least 18 years of age and never convicted of a felony.
Individuals should give careful consideration when designating an estate administrator. Sadly, death often brings out the worst in people and can lead to family squabbles over who should receive inheritance gifts. Heirs who feel slighted or were left out of the Will can contest the Will, which will prolong the probate process and add additional legal expenses to the estate.
When heirs contest a decedent’s last Will they are responsible for legal fees. If a judge rules in their favor, the estate may be required to reimburse legal fees. Contesting a Will often causes financial hardship to the estate and reduces the amount of inheritance cash available. When possible, estate executors should strive to reach an amicable agreement to prevent the Will from being contested. Individuals who choose to disinherit an heir from their Will should include a disinheritance clause. Stating the reason for disinheritance can lessen the chance of having the Will contested. When family strife exists, individuals should consider retaining the services of a probate attorney to manage estate settlement duties. Heirs are often less inclined to initiate a lawsuit when lawyers are appointed to manage the estate.
Individuals can engage in estate planning strategies which allow certain assets to avoid probate. These can include life insurance policies, retirement accounts, checking and savings accounts, and investment portfolios. It is important to advise estate administrators of the location of important documents and provide a copy of the last Will. When records are stored in a safe deposit box, a key should be given to the probate executor. It is also smart to provide copies of real estate deeds, automobile titles, and life insurance policies.
Individuals should update their Will when major changes occur. These might include buying or selling real estate, adding new heirs, or taking out individuals previously named within the Will. Many people procrastinate about estate planning. However, dying without a Will prolongs the probate process and places additional duties on the appointed estate executor. Taking time to put affairs in order is one of the greatest gifts anyone can leave their loved one.
The difference between a Fiduciary and Executor of Estate comes down to the scope of responsibilities associated with each title. A Fiduciary refers to any individual acting on behalf of another, and in Estate Planning this often means in a legal capacity. An Executor, on the other hand, is a much more narrow responsibility. Executors can only act on the terms laid out in a Will.
Fiduciaries can encompass a wide array of responsibilities in the Estate Planning process, though they commonly refer to Trustees. Trustees manage the assets within a Trust on behalf of the Trustor (or, person who created the Trust). There is some overlap between a Fiduciary and Executor relating to how they manage assets on behalf of another. All Fiduciaries, including Executors, must act in the best interest of the individual they represent at all times.
A Fiduciary Trust works by holding assets on behalf of the Trustor, as a new legal entity. The Trust is then managed by a Fiduciary, called a Trustee, who acts according to the terms of the Trust. The exact fiduciary responsibilities will vary depending on the goal and structure of the Trust. Trusts can be utilized for a number of financial purposes while an individual is still alive, for example, to protect assets from creditors or provide long-term financial support to a child. Similarly, Trusts can also be used as part of an Estate Plan to help designate inheritances, set aside charitable contributions, or more.
The Fiduciary of a Trust is the Trustee, who is tasked with overseeing the management of property and assets within the Trust. Simply put, a Fiduciary is someone who acts on behalf of another person, often in a legal or financial capacity. In the case of a Trust, this involves following the wishes of the Trustor and acting in the best interest of the Beneficiary.
A Fiduciary role is often associated with a certain level of responsibility and care. The individual in this role is required to put the best interest of the client, which in this case would be the Trustor, before their own interests. There are numerous fiduciary roles involved in Estate Planning, such as an Executor of Estate. The Executor fiduciary duty to beneficiaries is to follow the terms laid out in the Last Will and Testament. By acting on behalf of the deceased, the Executor upholds a fiduciary responsibility.
A Fiduciary can be a beneficiary, though this is not always recommended. This situation typically occurs when a parent names an adult child as a Trustee, but also sets aside an inheritance for them. The child typically must fulfill their responsibilities as a Fiduciary before receiving their final inheritance. When a Fiduciary is named as a Beneficiary, difficulties may arise. If there is discontent within the family over inheritances, other family members may challenge the Estate Plan or the Fiduciary. Family members may also intervene if the Fiduciary is thought to be increasing their inheritance.
While a Beneficiary can serve as a Fiduciary effectively, and with no issues this arrangement is not for everyone. Another option is to work with a Professional Fiduciary, which you can learn by contacting legal firm in Utah.
Fiduciaries are held to high professional standards when acting on behalf of a Trustor, or anyone else. Below are some general Fiduciary responsibilities in Trusts of an Estate:
• Follow all directions laid out in Declaration of Trust
• Invest Trust assets conservatively, with minimal risk
• Maintain accurate financial records for tax purposes and Beneficiaries
• Avoid mixing personal interest with business interests
• Never use assets for personal gain or to favor specific Beneficiaries
• Report to Trustor or Beneficiaries as laid out in Trust documents
The exact role of a Trustee can vary slightly depending on the type of Trust and the assets involved. Although, there are certain fiduciary duties that can be expected when serving as a Trustee:
• Managing Assets: Trustees are tasked with managing the assets held by a Trust on a regular basis. The Trustee can consult with a financial advisor for assistance with investment management.
• Evaluating Markets: Occasionally, the Trustee may notice the investment allocation does not match the objectives of the Trust. It is the Trustee’s job to evaluate investment markets and ensure the assets held by the Trust remain in line with the overall goals.
• Funding Inheritances: The Trustee is in charge of funding inheritances, per the instructions laid out in the Estate Plan. This means selecting distribution strategies that minimize the Estate tax burden and maximize the overall benefits included in inheritances.
• Paying Taxes and Fees: Trustees file taxes, oversee tax returns, and coordinate any communications with the IRS. The Trustee must ensure that all documentation meets state and federal requirements.
• Maintaining Accounts: Any additional financial responsibilities, such as regular accounting procedures, are the responsibility of the Trustee. These must be balanced appropriately, especially as inheritances are distributed or investments are reallocated.
• Delegating Tasks: If the above tasks are ever outside the scope of a Trustee’s skills, it is normal practice to delegate certain responsibilities. For example, Trustees can decide to consult with financial advisors or attorneys when necessary to best manage the Trust.
As previously mentioned, there are numerous fiduciary roles within Estate Planning. Anytime an individual acts on behalf of another person, whether that be for legal, financial, or personal purposes, a fiduciary role is being assumed.
For example, a Guardian, Conservator, and Executor of Estate are all considered fiduciary duties in Estate Planning. While these roles may not involve the same type of expertise as a Trustee, they all demand a certain level of care to be handled correctly.
If you are the owner of a vast estate, hiring good lawyers to establish an effective plan for you can give you peace of mind. It can also provide a certain degree of relief because you know that you have arrested a problem that will surface at a time when you can do nothing to resolve it.
Here are some of the best things that you need to consider when dealing with your estate plan:
1. Work with a capable estate planning lawyers.
Estate planning involves legal matters and the best people who can do it effectively are the ones who have the necessary qualifications to make it happen. Don’t ever attempt to do it yourself, as it will only mean trouble and thousands of dollars in court litigation expenses if it does not become a legal document. You should remember that invalid documents are not honored anywhere.
2. Appoint a guardian for
You should designate a guardian for your young sons and daughters. If you won’t do it, a judge will. He has the authority to appoint somebody who will take care of your children in case you die unexpectedly. Designating a guardian for your children can help to prevent your qualified relatives from fighting over the right to become your children’s lawful guardian. You also need to assign a backup guardian as a precautionary measure just in case your first choice can’t serve for any reason.
3. Plan early.
It is always good to do estate planning while your wits are still intact. A mentally incapable person can no longer execute a will or estate plan. This makes life harder for you and your loved ones, most especially if they are still minors.
4. Supply your estate planning lawyer with the necessary documents.
You should furnish your attorney with the necessary documents and information to make your estate plan serve its purpose. These documents include deeds to your properties, divorce documents, shareholders agreements, and prenuptial agreements. Your failure to supply these documents can result in the failure of your estate plan.
5. Deal with your lawyer with honesty.
You need to be open and honest to your lawyer about your plan. This will make things easier for him to construct, and make your plan work towards your intended goal. Do not withhold important information from him, such as a previous estate plan or plans that you intend to override with a new one. This will help to set things in their proper order, and avoid legal battles between your heirs.
6. Let your fiduciaries know of their appointment and tell them to contact your lawyer.
Letting fiduciaries know of their appointment can help to ensure that the estate plan is in place. Assigning a fiduciary who doesn’t know about his appointment is disadvantageous to the estate plan. It can also create more problems if the designated person is not willing to serve or can’t be found.
7. Provide your Revocable Living Trust with complete funding.
You may not know it, but a Revocable Living Trust needs complete funding to prevent your assets from ending up in probate.
8. Conduct an annual review of your estate plan to make sure it is applicable.
If you fail to review your plan year after year, chances are some conditions may not be applicable anymore. You should see to it that your plan makes sense when it is needed. This will ensure that things are in their proper place at the proper time to avoid legal issues.
9. Choose the best fiduciaries for your beneficiaries.
Choosing the fiduciaries that can get along well with your beneficiaries is one of your best moves you can do to prevent the parties from future legal confrontations. They are supposed to be in good terms with one another. It is but logical to choose a fiduciary that your beneficiaries honor, respect and get along well with for your own peace of mind. You may need the expert advice of your lawyer to help you find the best trustee for your beneficiaries. Just be honest with him and things will work out fine.
These are some of the most important steps you can take to make an effective estate plan. They can work for you and it is advisable to contact the service of an attorney in Utah.
