Fiduciary Services
Harry J Brown, Attorney at Law, PLLC provides Estate Administration, Probate, Power of Attorney, Trustee, Executor, and other fiduciary services to ensure you or a loved one is taken care of during a prolonged illness and that your wishes are fulfilled when you pass away.
Types of Fiduciaries
Power of Attorney – A power of attorney may act in another’s place as agent or attorney-in-fact with respect to legal and financial matters of an individual.
Trustee – A trustee holds and administers trust property (the assets in a trust).
Conservator – A conservator is appointed by a court to care for and manage the property of minor or incapacitated person.
Executor – An executor is the person named in a will and appointed by the court to conduct the terms of the will and to administer the decedent’s estate.
Comparison of Trustee and Executor
A trustee is names in a trust and manages trust property during a grantors life and settles an estate when the grantor passes away. An executor is named in a will and settles an estate when an individual passes away. An executor only plays a role when a person passes away, whereas a trustee can manage trust property during a person’s incapacitation.
Comparison of Trustee and Power of Attorney
A power of attorney is a person legal power to make personal decisions on your behalf. A trustee is a person or company appointed in a trust document to manage and disburse trust property. A power of attorney ceases upon the death of the individual granting the power of attorney whereas a trustee’s role ceases per the trust document, often after settling an estate.
Comparison of a Power of Attorney and Conservator
A main difference between a conservator and power of attorney is the appointment. An individual names the power of attorney in a legal document (also known as a power of attorney), whereas a court appoints a conservator. Because a court appoints a conservator, an individual may not have a say who the conservator will be. The roles and responsibilities can be the same.
Other Fiduciaries Services NOT provided by Harry J Brown Attorney at Law
Healthcare Power of Attorney – A healthcare power of attorney is an individual who can make decisions about an individual’s medical care.
Guardian – A guardian is appointed by a court and empowered to make personal decisions for a minor or incapacitated person.
Financial Advisor – A financial advisor is a professional who provides financial services to clients based on their financial situation. It is important to note that a financial advisor is not always a fiduciary. Harry J Brown Attorney at Law does NOT provide financial advisor services. We collaborate with your financial advisor.
Duties and Responsibilities of Fiduciaries
Financial Power of Attorney
A general power of attorney allows the agent to act on behalf of the principal in any matters, as allowed by state laws. The agent under such an agreement may be authorized to manage bank accounts, sign checks, sell property, manage assets, and file taxes for the principal.
Executor
A person named in a will and qualified by the court to conduct the terms of the will and administer a decedent’s estate.
Trustee
The individual or bank or trust company designated in the trust agreement to hold and administer trust property. A trustee has the duty to act in the best interests of the trust and its beneficiaries according to the terms set forth in the trust.
Trustee During Your Incapacitation
A revocable trust becomes irrevocable upon the grantor’s incapacitation and a successor trustee steps in as the trustee. Because the trust is irrevocable, the successor trustee cannot modify a trust, rather, the role of a successor trustee is to follow instructions contained within the trust, such as arranging health care service preferences and paying bills. A successor trustee will file annual tax returns, pay bills, and provide beneficiaries status updates of the trust holdings.
Trustee Upon Your Death
Trustee’s Duties Upon the Death of the Grantor
A revocable trust becomes irrevocable upon the grantor’s passing and a successor trustee steps in as the trustee. Because the trust is irrevocable, the successor trustee cannot modify a trust, rather, the role of a successor trustee is to conduct the instructions contained within the trust, such as winding down the trust or making distributions over the lifetime of a beneficiary.
A trustee will locate and review your estate plan and other important documents and fulfill responsibilities like that of an executor. A successor trustee will be responsible for paying bills and preparing a final tax return. Other responsibilities can include conducting funeral instructions, securing the deceased’s property, notifying insurance carriers, and obtaining death certificates.
A trustee will then list assets with corresponding values and if the trust terminates, distribute assets to the named beneficiaries (settling a trust). Because assets are in a trust, probate not necessary, and a successor trustee can access accounts immediately. While there is no probate, one must follow proper procedure for settling a trust.
If the trust is to remain intact, in addition the responsibilities listed above, the successor trustee manages assets per instructions set forth in the trust. When a trust does not terminate, the successor trustee will meet with the deceased’s financial advisor for investment advice and to conduct the deceased’s wishes. A successor trustee will monitor the trust and be responsible to tax returns for the life of the trust.
Trustee for a Testamentary Trust
A testamentary trust is created when assets pass to a trust as directed in a will through probate. The trustee is a testamentary trustee approved or appointed by a court and must report the status of the trust to the court during the trust’s lifetime.
Trustee for a Special Needs Trust
The trustee of a special needs trust manages trust assets on behalf of an individual with a disability who is not able to manage affairs for him or herself. In addition to ensure assets are managed appropriately, a trustee of a special needs trust should keep abreast of laws impacting disabilities such as social security and Medicaid.
Trustee for a Family Trust
In addition to the duties and responsibilities of a trustee mentioned above, a trustee of a family trust may have additional challenge of navigating family dynamics. An independent trustee will fulfill a trustee’s obligations without bias.