Estate planning is the legal process that largely revolves around distributing your assets upon your death. That being said, there are also other aspects. For example, you can assign someone to manage your healthcare needs and financial interests should you become incapacitated. You can also nominate legal guardians to bring up your children should something happen to you.
Some of the roles mentioned above will be carried out by fiduciaries. In essence, these are individuals who are expected to act in the best interests of the estate and not themselves. Outlined below are some more specific examples.
Trustees
Trustees are placed in the fiduciary position of managing trusts that you establish within your estate plan. One common example is a trust that has been set up for children to provide them with financial support throughout their life. The trustee must act according to the instructions of the trust and not what they think is best. They are also not permitted to profit from the trust in any way.
Guardians
As stated, you can nominate guardians to look after your children in your estate plan. These individuals must act according to your final wishes and the best interests of the children if they accept the role.
When a breach of fiduciary duty happens
A breach of fiduciary duty is actionable in law. The most common example occurs when a fiduciary uses their position of power for the benefit of themselves and to the detriment of the beneficiaries. If you have experienced this sort of conduct, be sure to seek some legal guidance.
