An entrepreneur who wants his or her estate plan to protect their legacy should consider several key factors to ensure that their intentions are honored and their assets are managed effectively.
Duties of Agents Under Power of Attorney
An agent acting under a power of attorney must act in accordance with the principal’s reasonable expectations and in the principal’s best interest. The agent must act loyally, avoid conflicts of interest, and preserve the principal’s estate plan to the extent known and consistent with the principal’s best interest. This includes considering the value and nature of the principal’s property, foreseeable obligations, tax minimization, and eligibility for benefits. Agents are protected from liability to beneficiaries if they act in good faith and with care, competence, and diligence.
Role of Personal Representatives and Trustees
Personal representatives and trustees have a duty to settle and distribute the estate in accordance with the terms of any probated and effective will, and to do so expeditiously and efficiently in the best interests of the estate. Trustees must administer the trust in good faith, in accordance with its terms and purposes, and in the interests of the beneficiaries. This ensures that the estate is managed and distributed according to the decedent’s wishes and legal requirements.
Selection of Trustees
The selection of trustees is critical, especially if the estate includes significant business interests. Trustees should be chosen based on their relationship with the entrepreneur and their experience with the business interests that comprise the estate. This ensures that the trustees can manage the estate effectively and in the best interests of the beneficiaries. Trustees must avoid self-dealing and conflicts of interest, and their actions should align with the best interests of the trust’s beneficiaries.
Clear and Specific Instructions in the Will
The will should provide clear and specific instructions regarding the distribution of assets and the management of the estate. This includes setting up trust funds for beneficiaries and specifying the terms and conditions under which the assets are to be distributed. Clear instructions help prevent disputes and ensure that the estate is managed according to the entrepreneur’s wishes.
By considering these factors, an entrepreneur can create an estate plan that effectively protects their legacy and ensures that their assets are managed and distributed according to their intentions.