Founder
When engaging in estate planning, one of the most difficult things to do is designating a person or persons to act in various roles in the event of your disability or death. The various roles require people you trust, but with certain important attributes. Generally speaking you choose a family member or close friend whenever possible. Of course, anyone you choose must be over the age of 18.
The executor’s role is rather straightforward. The executor hires an attorney to do the probate or estate administration and to give guidance. That person is required to follow your wishes and directions, as set forth in your last will and testament. After appointed, the Executor must collect the assets, sell your home (if applicable), and then distribute the assets. The person you choose should be someone who is responsible, does not procrastinate, and can take action in a timely manner.
The trustee’s role is a bit more complicated. If, under your will, you have created a trust for minors or someone who is disabled, the role of the trustee is ongoing. He or she will be managing the assets received from the executor for a long time, possibly for years. Again, you want someone who is responsible, someone who you can trust, and someone has good decision making skills. Having some financial experience is a plus.
As for the health care proxy/living will, the person you choose should be someone who is obviously willing to step into this role if necessary. Usually, the first person one chooses for this is his/her spouse, followed by an adult child mature enough to make life and death decisions. Of course, you do want someone who can be unemotional, who will seek out medical advice when warranted, and someone who is familiar with your wishes. With the power of attorney, the document goes into effect the moment you sign it, and it conveys a good deal of power to the agent you select. Your protection is to not give the document to your agent unless and until it is needed. Again, the agent you choose needs to be mature, but most importantly, honest and trustworthy.
Choosing people to step in for you upon your death or disability can be a very difficult decision, but an absolutely necessary one.