Who are the Decision Makers in Your Estate Plan? (Part 1)
Within an Estate Plan, there are decision makers that are appointed to make sure your estate runs efficiently and appropriately after you are gone. Some of these decision makers will play a very small role and some will have a larger, more active role in the administration of your estate. Appointing these decision makers is an important task when planning for your estate, and that is why we are breaking down the key decision maker’s roles here:
Successor Trustee
In a Revocable Living Trust, a Successor Trustee is named when the Trustee can no longer continue as such due to incapacity, death, or other circumstances. A Successor Trustee virtually steps into the shoes of the Trustee and completes the tasks as the Trustee. Mostly, the Successor Trustee manages the Trust and follows the directives laid out in the provisions of the Trust, such as distributions or keeping the trust running. It is important to name more than one Successor Trustee, as it is a major responsibility, and therefore having multiple appointees will ensure that your directives are followed effectively and with little to no interference by the probate process. For more information on incapacity, click here.
Personal Representatives
A Personal Representative is an individual (or sometimes an institution) that oversees your estate after you pass. A Personal Representative can be appointed by the court or named in your will. Being a Personal Representative over someone’s estate can include a broad range of responsibilities including, but not limited to, overseeing certain tasks or provisions within the estate plan, approving distributions, being included in decisions concerning the estate, etc. If you have been appointed as a Personal Representative of an estate or you are thinking about appointing someone to be Personal Representative, continue reading! I have outlined some main points to consider whether you are a Personal Representative or you are the grantor appointing the Personal Representative.
Often, Personal Representatives are close family or friends to the grantor. However, institutions can act as Personal Representatives as well (i.e. an attorney, a bank, trust company, other companies, etc.). First and foremost, make sure that the individual you want to appoint understands and agrees to be the Personal Representative of your estate. This is a job, (see below) and therefore will require some time and attention until the estate is closed, which can last for years depending on the complexity of the estate. If you do not have an estate plan, and your estate goes through the probate process, the court will appoint a Personal Representative within the guidelines of state law, which can be an issue on its own. For more information on the probate process in Nevada, click here. Therefore, planning for your estate and Personal Representative ahead of time will enable you, the grantor, to have more peace of mind in knowing that the person you chose has your best interests at heart.
Personal Representatives are reimbursed for all legitimate out-of-pocket expenses incurred in the process of management and distribution of the deceased’s estate. In addition, Personal Representatives may be entitled to legal fees and extraordinary compensation under Nevada state law. Learn more about compensation Posted in Asset Protection, Basic Estate Planning, Elder Law, Estate Administration, Estate Planning, Guardians for Kids, Health Care, Nevada, Power of Attorney, Probate, Real Estate, Tax, Trust Administration, Trusts