Category: Fiduciary Duties

An executor is appointed to close out the affairs of a deceased person. The last will and testament is used to name the executor, but if one has not been named or no will exists, the court needs to appoint a person in this role.

An executor has what is known as a fiduciary duty. This means they must uphold the interests of the estate and the associated beneficiaries above their own interest. A violation of this could lead to the removal of the executor. Anyone appointed in this position should know that they have this legal obligation and be fully prepared for what it means to have this responsibility and duty to the estate.

If you are an interested party to an estate and believe that the current executor has violated the law or the ethical rules surrounding this role, you might be able to ask the court to remove them from this position. This is a serious matter and claim and one that should not be undertaken lightly.

If you suspect that a fiduciary duty has been breached, it’s best to try to make sure this isn’t a misunderstanding first. In order to ask that the executor be removed, the person must be an interested party to petition the court and ask the judge to remove that person.

You must be able to show a valid reason for why you’re making this request, such as misconduct or incompetence. Simply because you are frustrated with actions the executor took legally does not mean you have met the legal grounds to pursue a claim to get them removed. You might want to meet with a probate lawyer to discuss whether or not any violations occurred. All beneficiaries have to be notified when a petition is entered to have an executor removed and the court will review the claims to determine the course of action.

Have you ever wondered who is responsible for reviewing your 401(k) plan and ensuring that it is working for you? More than 54 million people across the United States rely on their 401(k) plan as their primary method to save for retirement, but many plan participants don’t know who’s responsible for managing it and how to use it the most effectively. 

Identifying who is responsible for your 401(k) plan can help give you greater clarity about working towards your retirement goals. A 401(k) plan, simply put, is a special purpose trust identified by your employer to help you save for retirement. This is overseen by one or more individuals known as plan trustees.

These plan trustees are legally responsible fiduciaries that must make sure that the 401(k) plan operates for the benefit of the plan participants and the participants’ beneficiaries. Furthermore, the plan trustees have to verify that your plan complies with the requirements of the Employee Retirement Income Security Act, which requires that every plan participant is treated fairly. A formal written document should be included with your 401(k) plan about how the plan does operate and the summary plan description can also be a valuable piece of information to review.

Bringing this information to your meetings with your financial planner or your estate planning attorney can help position you to better understand how this will protect your future.

 

Your estate planning documents will put together numerous roles where other individuals will step in and have responsibilities on your behalf. One of these is the executor. The executor is responsible for the gathering of information regarding your assets after you pass away, handling all tax responsibilities and then distributing those assets for you. Besides the executor, however, there are several other people who might play a key role in determining how to handle your assets or estate plan while you are alive or after you pass away. You need to know the distinction and also ensure you have selected someone for each of these roles appropriately. This is a crucial step in comprehensive estate planning for your individual or business needs.

A guardian is an individual who is responsible for the physical and regular care of your minor children if something were to happen to you. An agent, on the other hand, is a person who is appointed to manage your assets or make decisions on your behalf if you are unable to do so as a result of incapacitation or disability.

A trustee, on the other hand, manages and invests trust assets by distributing them in accordance with the terms of the trust you created. He or she is also responsible for filing all necessary tax returns. There may be multiple fiduciaries assisting with the management of your estate plan. Identifying the right people is extremely important as they should be both capable of handling this and willing to do so. Consulting with an experienced estate planning attorney can help you understand how these different roles will intersect and play a role if something happens to you while you are alive or after you pass away.