estate attorney | PILLI Law

Estate planning has many elements. It’s not just about writing a will. You have many financial and legal decisions that need to be made. The people that advise you should put your interests about their own. While you can hope for the best when you get financial or legal advice, the only way to know if they are really bound by ethics is to ask whether they are a fiduciary.

What Is a Fiduciary?

A fiduciary holds the highest responsibility as an advisor. A fiduciary is legally obligated, as well as ethically, to put the client’s best interests forward. Fiduciaries cannot mislead clients. Fiduciaries have to disclose any conflicts of interest. A fiduciary must give all material facts when providing financial or legal advice.

In estate planning, the trustee is a fiduciary who must make decisions in the best interest for the beneficiaries of the trust. A lawyer is a fiduciary who must act in the best interest of the client. An appointed guardian over a child is a fiduciary and has a duty to act in the child’s best interest until the child reaches the age of majority.

Not Everyone Has a Fiduciary Responsibility

You may be dealing with many financial advisors as you go through your estate planning. Not every financial advisor is a fiduciary. An insurance agent may make recommendations on different policies without telling you that he or she is receiving compensation for a particular plan. Not all stockbrokers have a fiduciary duty. Some brokers may earn commissions on trades, giving them a conflict of interest if your finances include those trades. You always need to ask if your advisor has a fiduciary responsibility or not.

Get Fiduciary Responsibility In Writing

When choosing estate planning advisors and managers, find out who is really managing your investments and money. You want an investment manager who is a fiduciary and actually manages your money, not one who farms it out to another company. Ask your fiduciary about their experience and background. Choose a person who has experience outside of brokerage accounts and insurance agencies. Ask where the income comes from. A fiduciary collects income from the clients, not from outside sources which can create conflicts. You should expect to pay your fiduciary by the hour.

Make sure you are dealing with a fiduciary in estate planning.

Being selected as the executor of a will is an honor and a significant responsibility. The final wishes and affairs of the testator are in your hands. The process of executing a person’s will is challenging as a loved one because you need to deal with the loss and the legal process. Thankfully, there is a straightforward roadmap to executing a person’s will, but there is no guarantee of a timeline.

Review the Document and Create an Inventory

Before you can move forward with the organization and distribution of assets, you will need to find the last will and testament of the decedent. While most testators will tell their executors where they can find the will, some do not, which means you will need to search the decedent’s home.

Once you have the will, review the document, making sure you focus on any amendments. Make a final inventory of the estate and contact any beneficiaries, letting them know of their inheritance.

File Forms With the Local Probate Court

As the executor of the will, you will need to file new forms with the probate court. The forms will need to include the official will and the inventory of the estate. While the timeline for sending in these documents varies by jurisdiction, most areas expect a filing between 10 and 30 days of the decedent’s passing and the finding of the will.

Resolve the Estate

To resolve the estate, you will need to manage the testator’s financial obligations and debts. Therefore, you will need to open an estate bank account. The account will allow you to keep an accurate record of all transactions made during the resolution of the estate.

Distribute Assets

Once you settle the estate, you can then start the distribution of assets to beneficiaries. Obviously, some portions of the inheritance may be affected while taking care of debts, but the remaining assets belong to the heirs as laid out in the testator’s will. In some states, an executor can receive up to five percent of the remaining assets as a fee.

File Remaining Taxes

After the distribution of assets to the beneficiaries, you will need to file the remaining income taxes for the decedent. Seek help if you need it from a qualified accountant.

Close the Estate and File Affidavit

When you complete your duties, complete the necessary bookkeeping, and send a copy to the beneficiaries. Once that is complete, file an affidavit with the court to close the estate.

What Is a Fiduciary?

6 Steps To Execute a Will

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