When preparing your estate plan, one of the most important decisions you will make is whom to appoint as your fiduciary. This individual(s) will be responsible for managing your financial, legal, and medical affairs during periods of incapacity and for administering your estate after death. Understandably, choosing fiduciaries is one of the most common and challenging questions clients raise during the estate planning process.

This article explains the different fiduciary roles in an estate plan, what each role involves, and the key factors to consider when deciding who is best suited to serve. Thoughtful fiduciary selection can help ensure your wishes are carried out efficiently, responsibly, and with minimal conflict.

What Is a Fiduciary in Estate Planning?

A fiduciary is an individual you designate in your estate planning documents to act on your behalf and in your best interests in the event of your incapacity or death. Fiduciaries are legally obligated to follow your instructions and comply with state law when managing your affairs.

Depending on the document, fiduciaries may be responsible for administering your estate, managing trust assets, making financial decisions, or overseeing medical care.

Common Fiduciary Roles in an Estate Plan

Personal Representative (Executor)

Under your w, you appoint a Personal Representative (called an Executor in some states). This individual is responsible for administering your probate estate, which typically includes:

• Filing probate court documents
• Managing estate assets
• Paying debts and expenses
• Filing estate tax returns, if required
• Distributing assets to beneficiaries

If your estate plan includes a Trust, your will may direct assets to be transferred to the Trustee, who then manages further distributions according to the Trust’s terms.

Trustee

A Trustee administers your trust and manages trust assets for the benefit of your beneficiaries. Trustee responsibilities commonly include:

• Liquidating, managing and investing trust assets
• Making discretionary and/or mandatory distributions
• Maintaining records and accountings
• Communicating with beneficiaries

Depending on the terms of the trust, Trustees may have significant discretion in deciding when and how much to distribute to beneficiaries, making this role especially important.

Attorney-in-Fact (Durable Power of Attorney)

Under a Durable Power of Attorney, you appoint an attorney-in-fact to handle financial matters on your behalf. This person is authorized to step into your shoes and make financial decisions, which may include:

• Managing bank accounts and investments
• Paying bills and expenses
• Handling real estate or business matters

In Massachusetts, Durable Powers of Attorney typically become effective immediately upon execution even though the attorney-in-fact generally acts only if you are unable to do so yourself.

Health Care Agent

A Health Care Agent, appointed under a Health Care Proxy, is authorized to make medical decisions if you are incapacitated. This includes:

• Making treatment decisions
• Communicating with doctors and medical providers
• Making end-of-life decisions in accordance with your wishes

Your health care agent plays a critical role in ensuring your medical preferences are respected.

How to Choose the Right Fiduciaries For You

Selecting fiduciaries requires careful thought. Each role carries legal responsibilities and often involves long-term commitments.

Choosing a Personal Representative or Trustee

When naming a Personal Representative or Trustee, consider someone who is:

• Financially responsible
• Organized and detail-oriented
• Capable of handling complex tasks
• Willing and able to devote time to the role

Estate and trust administration can take months or even years. Many people choose the same individual to serve as both Personal Representative and Trustee due to the overlap in responsibilities.

Choosing an Attorney-in-Fact or Health Care Agent

For incapacity planning documents, trust is paramount.

• Attorney-in-Fact: This person may have immediate access to your financial accounts, so you should feel fully comfortable granting them broad authority to handle all of your financial affairs.
• Health Care Agent: Choose someone who understands your values and will honor your medical and end-of-life wishes, even under pressure.

Joint Fiduciaries: Pros and Cons

You may name joint fiduciaries—often adult children—to share responsibility. Estate planning documents can include provisions addressing decision-making and dispute resolution.

However, joint fiduciaries are not recommended for emergency documents such as Durable Powers of Attorney or Health Care Proxies. In urgent situations, institutions typically prefer working with one decision-maker.

Practical Considerations

Additional factors to weigh include:

• Age and health of the fiduciary
• Physical and mental capacity
• Geographic proximity to you and your assets

A fiduciary who lives nearby may be better positioned to communicate with family members, access property, and manage logistics efficiently.

What Legal Guidance Do Fiduciaries Receive?

Most fiduciaries have no prior experience administering estates or managing another person’s affairs. Fortunately, they receive guidance from both state law and the estate planning documents themselves.

All fiduciaries are subject to:

• Duty of Care: The obligation to make informed, prudent decisions
• Duty of Loyalty: The obligation to act solely in the best interests of the beneficiaries and disclose conflicts of interest

Estate planning documents also outline specific responsibilities. For example, Trustees are often required to provide written accountings to beneficiaries. Fiduciaries typically work closely with estate planning and probate attorneys to ensure compliance with legal requirements.

It is often helpful to discuss your expectations with nominated fiduciaries in advance so they understand your intentions and the scope of their responsibilities.

Can Fiduciaries Be Changed or Removed?

Yes. Fiduciaries can generally be changed while you are alive and competent. Estate plans should always name at least one successor fiduciary in case the primary designee is unable or unwilling to serve. It is common for spouses to name each other as the primary fiduciaries for these roles, with their adult children or other adult family members as successors.

If a fiduciary fails to act responsibly, most estate planning documents allow beneficiaries to remove them or petition a court for removal. A replacement fiduciary can then be appointed to ensure proper administration. Most state law also permits a fiduciary to be removed for inappropriate behavior.

Final Thoughts

Choosing fiduciaries is a foundational element of a well-crafted estate plan. While these decisions can be revisited over time, selecting individuals you trust to honor your wishes and manage your affairs responsibly is essential to your estate plan.

As relationships and circumstances change, it is wise to periodically review your fiduciary appointments to ensure they continue to align with your intentions and long-term goals.