If you are creating or updating your estate plan, you may be considering whether a family member can act as a fiduciary. The answer is yes, but there are important factors to consider.
The role of a fiduciary
A fiduciary handles critical tasks, such as managing assets, paying off debts, and distributing property according to the will or trust. If you have named a family member to serve as executor or trustee, they must understand that this role comes with legal and financial obligations. For individuals looking to avoid probate or simplify the process, selecting the right fiduciary is important to keep costs down and avoid delays.
Legal requirements
Texas allows family members to act as fiduciaries, but they must meet specific legal requirements. The person must be over 18 and mentally capable. Courts can disqualify individuals with criminal records or those deemed unfit. The court may deem a person unfit if they have a history of financial mismanagement, substance abuse, or conflicts of interest.
Challenges and costs
Although choosing a family member might seem ideal, they must handle the estate impartially. This can be challenging in emotionally charged situations. Mismanaging the estate can lead to legal issues. For those focused on avoiding costly probate, a well-informed fiduciary is essential to navigating these complexities.
Informed decisions
Selecting a family member as a fiduciary can simplify estate administration if they are well-prepared for the role. With careful planning, they’ll manage your estate effectively, ensuring they honor your wishes and minimize potential costs.