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When we sit down with clients here in Savannah to discuss their estate plans, one term that often causes confusion is “fiduciary.” At Smith Barid, LLC, we believe in demystifying the estate planning process, so let’s break down what fiduciaries are and why they’re so important in your estate plan.

What ‘sa Fiduciary?

In simple terms, a fiduciary is someone who acts on behalf of another person, putting that person’s interests ahead of their own. It’s a relationship built on trust and confidence. In estate planning, fiduciaries play crucial roles in managing and distributing your assets according to your wishes.

Types of Fiduciaries in Estate Planning

1. Executor (or Personal Representative): This is the person responsible for managing your estate after you pass away. They’ll pay your debts, file your final tax returns, and distribute your assets according to your will. If you own a business in Savannah, your executor might also be responsible for managing it until it can be transferred or sold.
2. Trustee: If you’ve set up a trust (which can be a great tool for avoiding probate, especially for valuable Savannah real estate), the trustee manages the trust assets for the benefit of your chosen beneficiaries. This could involve investing funds, maintaining properties, or making distributions.
3. Guardian: For parents of minor children, this is perhaps the most important fiduciary. The guardian is responsible for raising your children if something happens to you. They’ll make decisions about education, healthcare, and day-to-day care.
4. Power of Attorney Agent: This person can make financial decisions on your behalf if you become incapacitated. They might pay your bills, manage your investments, or even run your business if you’re unable to do so.
5. Healthcare Proxy: Also known as a healthcare power of attorney, this person makes medical decisions for you if you can’t make them yourself. This role is particularly important in ensuring your healthcare wishes are respected.

The Fiduciary Duty

All these roles come with what’s called a “fiduciary duty.” This legal obligation requires the fiduciary to act in your best interests, not their own. They must:

• Act in good faith
• Avoid conflicts of interest
• Keep detailed records
• Not use their position for personal gain

Choosing Your Fiduciaries

Selecting your fiduciaries is one of the most important aspects of estate planning. Here are a few things to consider:

• Trustworthiness: This is paramount. Choose someone you trust implicitly.
• Capability: Particularly for roles like executor or trustee, financial savvy can be important.
• Willingness: Make sure the person is willing to take on the responsibility.
• Location: While not always necessary, it can be helpful if your fiduciary lives in or near Savannah, especially for guardians or healthcare proxies.

It’s also wise to name backups for each role, just in case your first choice is unable or unwilling to serve when the time comes.

The Savannah Perspective

Here in Savannah, we often see unique situations that require careful consideration when choosing fiduciaries. Maybe you own a historic home that requires special care, or perhaps you have a family business that’s been operating in Savannah for generations. In these cases, you might want to consider a fiduciary with specific expertise or local knowledge.

At Smith Barid, LLC, we understand the nuances of estate planning in our community. We can help you navigate the process of choosing fiduciaries who will honor your wishes and protect your legacy.

Ready to discuss fiduciaries and other important aspects of your estate plan? Give us a call at 912-352-3999 or click here to schedule an initial discovery meeting. Let’s work together to create an estate plan that gives you peace of mind, knowing your affairs will be handled exactly as you wish.

Related reading:

• Why Even “Reputable” Sources Can Get Estate Planning Wrong: A Georgia Lawyer’s Perspective
• Keeping Your Family’s Personal Matters Private: Estate Planning in Savannah and Georgia