When an individual begins planning their estate, they will have to choose a trusted party who will act as a fiduciary. According to the American Bar Association, a fiduciary can be defined as “an individual or bank or trust company that acts for the benefit of another. Trustees, executors, and personal representatives are all fiduciaries.”
The fiduciary has a number of different responsibilities to fulfill when the decedent has passed away. The person acting as a fiduciary will have to handle all of the decedent’s debts, expenses, and if they are the executor of the will, they also have to distribute all inheritances to beneficiaries. Individuals who are appointed fiduciary have a very significant and time-consuming responsibility. In many situations, the fiduciary may be compensated for their commitment to honoring the wishes of the decedent.
Before an individual accepts the responsibility of being named as a fiduciary, it is important to know that failure to properly manage the estate or failure to properly pay taxes can result in serious consequences. In some cases, an individual can be discharged as the fiduciary if they fail to complete all of their duties.
If you have questions about acting as a fiduciary, contact our firm today.
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.