Your friends, family, and colleagues may play an important role in your estate plan. It is vital to appoint a fiduciary to act on your behalf—to carry out your wishes when you become incapacitated or pass away. Your fiduciary is legally bound to make decisions with your interests in mind and in accordance with your written instructions.
Many people select a single fiduciary to manage their affairs. However, the amount of time required for the role can be overwhelming. When deciding who to appoint as fiduciary, be mindful of the degree of effort associated with maintaining and managing your affairs.
You may want to nominate co-fiduciaries. Of course, choosing multiple fiduciaries has its drawbacks. You will need to decide if they must act unanimously, or if one can act on your behalf without the consent of the other. If an even number of fiduciaries is named, serious tension can arise. If you require a unanimous decision, a deadlock can happen.
Co-fiduciaries may struggle to coordinate schedules, especially if they are located in different geographical areas or have demanding jobs. Regardless of whether a unanimous decision is required, it is crucial for everyone to be involved in the process of making big decisions on behalf of a loved one. That said, it is also important that all parties involved in the decision-making process get along – which is no easy feat for some families.
The benefits of co-fiduciaries may outweigh the drawbacks. If you’re confident that the co-fiduciaries can get along and there are appropriate provisions written into your estate planning documents to address the possible issues, it may be worth appointing several trusted fiduciaries.
Should you decide to appoint just one person as fiduciary, you have a couple of options. Appointing a trusted family member or friend can be a good choice depending on the type of work involved. However, if you do not want to pick one person over another, or if your loved ones are not able to act on your behalf, look for a professional to represent your needs. They’ll generally be more available to manage your assets and make unbiased decisions based solely on your wishes and best interests.
Whether you opt to appoint several fiduciaries, family members, or trusted professionals, it’s always smart to plan. You can work with your attorney to determine the best provisions to add to your documents to mitigate possible issues. Call us at 303-984-9900 to schedule a FREE initial consultation to review your estate planning goals.