Agents Assemble! How to Choose Your Estate Plan Team

Estate planning ensures that your wishes are honored and your loved ones are cared for when you’re no longer able to manage your affairs. A significant part of this process involves appointing individuals to serve in various key roles, such as financial power of attorney agents, medical power of attorney agents, executor of the will, and trustee of the trust. Each of these roles carries distinct responsibilities, and various factors should be considered when selecting the right person for the job.

Financial Power of Attorney Agents

A financial power of attorney (POA) manages your financial affairs if you become incapacitated. This role involves handling tasks such as paying bills, managing investments, and making financial decisions on your behalf. Your Agents owe you a fiduciary duty, the highest level of responsibility imposed under Texas law.

Factors to Consider:

• Trustworthiness: How much do you trust the individual with your financial accounts and assets?
• Financial Acumen: Does the person have the necessary financial knowledge and skills?
• Availability: Is the person willing and able to take on the responsibility?
• Proximity: Would it be beneficial for the individual to live nearby for handling local financial matters?

Medical Power of Attorney Agents

A medical power of attorney makes healthcare decisions on your behalf if you are unable to do so. This role requires making potentially life-altering medical decisions in accordance with your wishes.

Factors to Consider:

• Empathy and Compassion: Does the person understand your healthcare preferences and have compassion in their decision-making?
• Stress Management: Can the individual handle stressful situations calmly and make rational decisions under pressure?
• Communication Skills: Is the person able to effectively communicate with healthcare providers and understand complex medical information?
• Availability: Is the person readily available in case of a medical emergency?

Executor of the Will

The executor of your will manages your estate after you pass away. This includes distributing assets to beneficiaries, paying debts and taxes, and ensuring your wishes are carried out as specified in your will.

Factors to Consider:

• Organizational Skills: Does the executor have strong organizational and detail-oriented skills?
• Integrity: Will the person act with honesty and integrity, ensuring fair and impartial execution of your will?
• Familiarity with the Estate: How well does the person understand your estate and your wishes?
• Willingness: Is the person willing to take on the responsibilities and has the time to do so?

Trustee of the Trust

A trustee manages the assets held in a trust according to the terms you set forth. This role can be ongoing, as trusts can last for many years.

Factors to Consider:

• Financial Competence: Does the trustee have a good understanding of financial and investment principles?
• Objectivity: Can the individual act impartially, especially if the trust involves multiple beneficiaries?
• Commitment: Is the person prepared for the long-term commitment that may be required?
• Professionalism: Would a professional trustee, such as a bank or trust company, offer expert management of the trust?

Family Member, Friend, or Professional?

When deciding whether to appoint a family member, friend, or professional for these roles, consider the following:

• Family Member: Family members often have a deep understanding of your wishes and personal circumstances, but appointing a family member can sometimes lead to conflicts of interest or emotional strain.
• Friend: A trusted friend can offer impartiality and a different perspective, provided they are capable and willing to handle the responsibilities.
• Professional: Professionals, such as corporate trustees, offer expertise and neutrality. They can be particularly useful for complex estates but may come with higher costs.

Conclusion

Selecting the right person for these key estate planning roles involves careful thought and consideration of various factors. Evaluating each candidate’s suitability based on the specific requirements of the role and their ability to act in your best interest can help ensure effective management of your estate and honoring your wishes.