The laws on how people plan their estates have begun changing over the past few years. If you haven’t begun planning for how you can provide for your loved ones upon your passing, it might be time to start doing so.
One of the most important parts of developing a plan for your assets is to identify a person or company that will stand in your place and act in the best interest of those you are leaving your assets to. This person or company will be a fiduciary to help make sure your heirs’ interests are taken into consideration and everything is done according to your wishes.
What Is a Fiduciary?
A fiduciary is a responsible party that works to manage your assets after your passing. They can be bankers, accountants, corporate officers and more.
Responsibilities of a Fiduciary
The responsibilities that fiduciaries must follow are both legal and ethical. When they accept their role as your fiduciary, they must ensure your heirs are taken care of. The prudent person standard of care ensures that your chosen fiduciary must not personally benefit from the management of your assets.
When Should You Use a Fiduciary?
When you have significant assets that will require a proper management after you’re gone, a fiduciary in Gibraltar may be able to help you. The following are some significant assets that may require a fiduciary to handle after your passing:
- Trusts: When you have trusts, you will need to make sure you name a trustee who will be held up to a fiduciary standard of care for handling your trusts.
- Estate Settlement: Upon your passing, your fiduciary will be able to act in your best interests to ensure your estate continues on.
- Charities: Your fiduciary can work to ensure your charity and capital resources are safe during your passing.
The Duties of a Fiduciary
Now that you have a better understanding of what a fiduciary is, it is time to take a look at what they must do when you are no longer capable of making these decisions. The following is a short list of some of the duties of a fiduciary:
- The appraisal of estate assets
- Paying any remaining debts and expenses
- Conflict management among any beneficiaries
- Filing taxes
- Managing the liquidity of the estate
- Validating claims on the estate
- Supervising litigation against the estate
- Maximising the estate’s effectiveness
To ensure your wishes are fulfilled and your beneficiaries’ needs are met, you will want to make sure you select a fiduciary that you are able to count on. A fiduciary can help to provide you with long-term asset management. As with anything else you prepare for on a daily basis, it may be time to look at your assets and determine what will happen to them if you should pass away. You probably plan for every other aspect of your life, so now it’s time to make sure you have the management of your estate in the appropriate planning phases as well.