For your wishes to have the best chance of being honored, it is important to carefully choose the people you name in those documents who are entrusted with carrying your wishes out.
Think about that. Your estate planning documents may be in perfect order, yet if the person you choose to carry out its directives fails to follow through with them, then all of your planning was a waste. Thus, in this article, we will look at the importance of picking those right people to name in your documents.
Your estate plan can assign different responsibilities to different people. The person who you most trust to raise your children, for example, may not be the person you’d designate to make health care decisions on your behalf, if you are incapacitated. Before naming individuals to carry out your various estate and incapacity planning wishes, you should carefully consider the requirements of each role and the attributes which each individual has that will allow him or her to perform the duties effectively.
Executor. You name the executor, (also known as a personal representative), in your will. This person is responsible for carrying out all the terms of your will and guiding your will through probate. The executor usually works closely with a probate or estate administration attorney.
Health care agent. Your health care agent is the person you name to make medical decisions for you in the event you are incapacitated and unable to do so yourself. In addition to naming a health care agent (sometimes called a health care power of attorney), most people also create a living will (or health care directive), in which they directly state their wishes for medical care and end-of-life care in the event of incapacity. When choosing a health care agent, select a person who you know understands your wishes regarding medical care, and who you trust to carry out those wishes, even if other family members disagree. You should also consider individuals who have close geographic proximity to you as well as persons you believe can make difficult decisions under pressure.
Power of attorney. A financial power of attorney (or simply power of attorney) is different from a health care power of attorney in that it gives another person the authority to act on your behalf in financial matters including banking, investments and taxes. You can limit the areas in which the person may act, or you may grant unlimited authority. A power of attorney may also be limited for a specific time, or it may be a durable power of attorney, in which case it will continue even after the onset of incapacity (until your death). A power of attorney can take effect immediately or “spring” into effect in the event of incapacity.
Tutors. If you have minor children or other dependents (disabled adult children or other disabled adults for whom you are the named guardian), then your estate plan should name a person or persons to take over the parental role in the event of your death. This person is known as a Tutor. The Tutor may also have control over any assets tha