Publish Date: January 5, 2022
As we enter 2022, many folks take this time to get their finances in order. Have you considered the need to adopt an estate plan? Doing so is an important step in your financial life.
“There are many reasons to create an estate plan, but it is typically used to fulfill a person’s wishes, provide for loved ones and determine how a person’s assets should be managed and distributed,” says Julie Versluis, Vice President and Trust Officer at Fidelity Bank & Trust. “In establishing your estate plan, you will need to name an executor and/or trustee. An executor or trustee can be an individual or a professional, such as a bank acting as a fiduciary, who will serve as a custodian for the assets held within your estate or trust. It is important to choose a fiduciary that understands your goals and has the capability to follow your instructions,” she added.
Versluis details 10 questions to consider when choosing an executor or trustee that may help you decide what kind of fiduciary is right for you:
- Will someone always be available to act for my estate or trust, regardless of business commitments, vacation or illness?
Bank: Yes Individual: No
- Does my fiduciary have the experience needed to invest and reinvest the assets that will belong to my estate or trust?
Bank: Yes Individual: Maybe
- Can my fiduciary maintain computerized records of all assets, income and disbursements, and assets of my estate and trust?
Bank: Yes Individual: Maybe
- Is my fiduciary experienced in collecting debts owed to me, my estate and trust?
Bank: Yes Individual: Maybe
- Is my fiduciary aware of the numerous tax elections that are available to minimize income and estate taxes payable by my estate and trust?
Bank: Yes Individual: Maybe
- Does the person administering my estate or trust spend full time in estate and trust administration?
Bank: Yes Individual: Maybe
- Is my fiduciary familiar with the formalities to administer my estate or trust and likely to avoid questionable or dangerous acts?
Bank: Yes Individual: Maybe
- Is my fiduciary unrelated to all of my beneficiaries and presumably impartial in deciding among their interests?
Bank: Yes Individual: Maybe
- Is it likely that my fiduciary has previously dealt with situations similar to those concerning my estate and trust?
Bank: Yes Individual: Maybe
- Does my fiduciary’s past experience in administering estates and trusts relieve my attorney of routine administrative duties?
Bank: Yes Individual: Maybe
Wherever you are in your financial journey, our wealth management team is here to help. Learn more about financial planning tips for your life stage, or contact us to see how Your Hometown Bank can meet your expectations.
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