Creating a comprehensive estate plan should be a lengthy process that requires considerable thought and contemplation on your part. Deciding what will happen to your estate assets after you are gone is certainly an important part of the estate planning decision-making process; however, there are other equally important decisions you will make when creating your estate plan. Choosing fiduciary positions within your estate plan, for example, can directly impact the success of your plan. With that in mind, the Essex Junction attorneys at Unsworth LaPlante, PLLC explain the most common fiduciary roles within your estate plan.
What Does It Mean to Be in a Fiduciary Position?
âFiduciaryâ is a legal term that refers to âa person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons).â A fiduciary is held to very high standards, both ethically and legally because a fiduciary is entrusted with something of value that belongs to, or is intended to benefit, another person. A hallmark of the role of a fiduciary is the requirement that decisions always be made with the best interest of that other person (or people) in mind. Another important aspect of a fiduciary role is the legal requirement that a fiduciary exercise the utmost care when managing and/or investing assets.
What Are the Fiduciary Roles in My Estate Plan?
A common estate planning mistake is choosing the wrong person for a fiduciary role. Because these roles tend to involve âtrust,â people often choose someone based solely on the fact that they trust that person. While being a trustworthy person in general is certainly one factor that makes a good fiduciary, a better understanding of what a fiduciary role entails should help you make the best decisions when choosing fiduciary roles within your estate plan. Your estate plan may not require you to choose all the following fiduciary roles; however, it will undoubtedly require you to choose at least one of them:
- Executor of your estate. Your Executor is appointed in your Last Will and Testament and is responsible for overseeing the probate of your estate. Your Executor will need to be able to manage his/her grief over your death while simultaneously administering your estate. The job of Executor can be very complicated if your estate is complex and/or valuable or if the estate is involved in litigation. Ideally, your Executor should have some financial experience and be willing to undertake a difficult and potentially time-consuming job while also working through strong emotions.
- Trustee of a trust. Like many people, you may incorporate at least one trust agreement into your estate plan. If so, you will need to appoint a Trustee whose job will be to oversee the administration of the trust as well as managing and investing trust assets. Your Trustee should have financial and/or legal experience and be able to make decisions that are in the best interest of the trust beneficiaries while also furthering the trust purpose as stated by you in the trust agreement.
- Agent in a Power of Attorney. Your estate plan may include a financial Power of Attorney (POA) and/or a healthcare POA that requires you to appoint an Agent. Your Agent in a financial POA may be authorized to act on your behalf in very important legal and financial matters while a healthcare POA Agent will have the authority to make medical decisions for you if you cannot make them yourself. Given the important nature of the decisions your Agent will make and the power your Agent will have, choose wisely.
Do You Need Help Choosing the Fiduciary Roles in Your Estate Plan?
For more information, please attend one of our upcoming FREE webinars. If you need help choosing the fiduciary roles in your estate plan, contact an experienced Essex Junction estate planning attorney at Unsworth LaPlante, PLLC by calling 802-879-7133 to schedule your appointment today.
- Young Families Estate Planning in Vermont - May 5, 2026
- 8 Vermont Medicaid Myths Seniors Need to Understand - April 30, 2026
- Things to Consider If Someone in Your Estate Plan Is Not a U.S. Citizen - April 23, 2026
