Selecting someone to manage your estate after you are gone is an important decision. In Texas, this person is a fiduciary. The role of a fiduciary is to ensure the distribution of your assets according to your wishes.
However, common mistakes when choosing a fiduciary can lead to complications and disputes.
Choosing an unqualified person
One common mistake is picking a person who lacks the necessary skills and knowledge to handle estate administration. Choose a fiduciary who is financially responsible, organized and trustworthy. They should have a good understanding of legal and financial matters.
Putting too much weight on personal relationships
Another mistake is favoring personal relationships when choosing a fiduciary. While family members or close friends may seem like natural choices, they may not always be the best fit. Assess each individual’s ability to handle the responsibilities of estate administration impartially and without conflict of interest.
Not reviewing your choice regularly
People may forget to update their choice of fiduciary. Circumstances change over time, and the person you originally chose may no longer be the most suitable option. Review your choice periodically. Make updates as needed to ensure that your estate is in capable hands.
Overlooking communication
Effective communication is key to successful estate administration. Choosing a fiduciary who is unwilling or unable to communicate openly with beneficiaries can lead to misunderstandings and disputes. Select someone who is willing to keep beneficiaries informed and address any concerns they may have.
By avoiding these common mistakes and carefully considering your options, you can ensure effective management of your estate.