Choosing a fiduciary is a common cause of stress in our line of work. After all, we have to pick someone who is honest, responsible, financially savvy, and kind. Further, the client must choose someone who is familiar enough with their family’s situation to understand their needs and choose the best options should they need to step in and manage assets. Although these may seem like minor factors, a fiduciary’s character and skill will influence their ability and willingness to pay debts, handle claims and expenses, negotiate on behalf of the estate, and even conclude the administration of the estate, trust, or other assets.
Although it’s a great honor to be considered for such a position, it’s also a heavy weight of responsibility. Penalties for mismanagement and/or failure to pay taxes can even include personal liability, which is a major consideration for any fiduciary.
For an examination of these issues, we found an article published by the AAEPA that may be of interest to you. Please click here for more.