“Yesterday is gone. Tomorrow has not yet come. We have only today. Let us begin.” – St. Teresa of Calcutta.
If you are considering creating an estate plan or updating your existing plan, one of the key issues you must decide is the selection of your successor trustee if you have a trust, the executor named in your will, and your agents for power of attorney documents–both financial and health care.
Sometimes the decision is a natural one. It is common to appoint adult children who are willing and able to do the job. But if you don’t have adult children, or if your children are not the best choice to administer your estate due to family conflicts, personal issues, or other complicating factors, you may consider other options.
A corporate trustee may be an ideal choice for larger or more complex estates, those with ongoing trusts, and those requiring professional asset management. However, there is another option which offers a middle ground between family and a corporate structure: a private professional fiduciary.
A private professional fiduciary is a state-licensed professional trained to manage financial, legal, and personal care affairs of individuals. They may act in all fiduciary roles, including trustee, executor, and power of attorney for financial and health decisions. Licensed and experienced with the duties of administering trusts and estates, they may be able to complete the tasks in a more efficient manner, taking the burden off your family or beneficiaries, and handling difficult situations with professionalism and neutrality.
California has an experienced corps of licensed private professional fiduciaries, including those with special needs trust backgrounds, who may have support staff to help track beneficiary needs and financial status.
Since a private fiduciary is a person, it is important to name multiple successors if possible and explore the options if the person you have selected becomes incapacitated, dies, or moves out of the area. In addition, you should plan ahead so the individual has the information they will need about your assets, how to access your property and locate accounts, and your choices regarding health and personal decisions.
Private fiduciaries charge a fee, which may be a percentage of your estate, a fixed hourly rate, or a combination of both. They will not collect a fee until they actually take over your affairs, i.e. if you become incapacitated or die.
Your estate planning attorney will likely have a list of private fiduciaries they have experience working with, or you can find a listing of licensed fiduciaries through the California Department of Consumer Affairs or the Professional Fiduciary Association of California. Contact your estate planning attorney to go over your options.
949.285.4270 / SusanHattanLaw.com / Susan@SusanHattanLaw.com
903 Calle Amanecer, Suite 230, San Clemente, CA 92673
