Naming Fiduciaries and Other Persons/Positions: An Important Personal Decision.

The following discussion is intended to help guide you through one of the most important decisions concerning your estate plan and estate planning documents: who you will name to serve in the important positions. While this can be a simple decision of just naming a spouse, child, family member, or friend, the decision should not be made without deliberation. Sometimes, just naming a person in a particular relationship may not be the best decision. You should never name someone out of a feeling of obligation. You should also consider the responsibilities and obligations the person you are considering naming may face in their lives. Will it be practical for them to take on additional responsibilities? Also, there are many more positions that you have likely already filled, and will have to appoint people for, than you might realize. 

You might be able to name the same person to serve in many positions (e.g., a spouse, partner or adult child) but that is not always ideal. Someone who can make medical decisions for you if you cannot do so, may not be the best person to make financial decisions. Finally, depending on your circumstances and planning goals, you might need to name an institution in a particular state, someone who is independent of you and the beneficiaries named, etc. That presents its own array of personal, legal and technical tax decisions. 

An important goal of this discussion is to give you ideas that might enable you to make decisions you could be struggling with, or to make better decisions. These practical suggestions will be addressed throughout the discussion following.

Once you have selected people to name, you should really take the step of confirming with them that they are willing to serve. It is also important that they are prepared to know if the appointment should actually occur. It is not prudent to designate a friend as your healthcare agent, and they only learn of that when they get a call from a hospital seeking their input. It is unfair to them and you. It also makes it less likely that they can carry out a role that they were not prepared for.

What should you explain to those you seek to appoint? You need to understand some of the general responsibilities the people you appoint will face so that you can explain those points to them. This paper will discuss some of the points you might consider in having those discussions.

This paper will explore these and other considerations to help you make choices that meet your wishes.

Finally, which is not the topic of this paper, once you’ve selected fiduciaries, had an open discussion with them, and confirmed their willingness to help, you should prepare information to guide them in fulfilling their roles. This might include, as appropriate to the position involved, medical information, financial information, etc.