Key Roles to Include in Your Estate Plan

August 16, 2024

Designating people you trust to fill important roles, including executor and power of attorney, is essential to a successful estate plan.

Effective estate planning isn't just about distributing your assets upon death. It's also about identifying a trusted team of individuals who can look out for your best interests during and after your lifetime.

"No matter how complex or simple your estate, there are certain roles that should be filled—and the sooner, the better," says Austin Jarvis, director of estate, trust, and high-net-worth tax at the Schwab Center for Financial Research.

They include:

A financial proxy: If you're unable to make financial decisions, a financial power of attorney (POA) empowers another person or persons to make them for you. "Even if you're married, your spouse may not have the authority to act on your behalf," Austin says. "A financial POA ensures your chosen representative can take charge without delay."
A health care proxy: A health care POA similarly authorizes another person or persons to decide your medical care should you become physically or mentally incapable.
An executor: This person is responsible for administering your estate, including paying debts and taxes, and distributing what's left to heirs according to the terms of your will.
A trusted contact: Most financial institutions allow you to name a trusted individual who can be contacted if the firm suspects financial exploitation and/or has trouble communicating with you about your account. A trusted contact, however, does not have access to your account.

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Depending on your situation, you might also need to appoint:

A guardian: It's critical you identify someone to care for minor children should you become incapacitated or die without a surviving spouse. In a similar vein, if you're the conservator for your disabled or otherwise impaired adult child, you may be able to petition the court to name a successor conservator if your state permits it.
A trustee: This person manages and distributes your trust's assets in accordance with the trust documents, a role that can require a commitment for years or even decades. "Make sure your selected trustee is clear on what's expected of them and for how long," Austin says. "Alternatively, a corporate trustee can provide the expertise and resources to offer seamless administration no matter the duration of your trust."

Learn about Schwab Personal Trust Services.

It's also wise to select backups in case your primary selections are unavailable. "Aside from the conservator role for a disabled or otherwise incapacitated adult child, which has special legal considerations, you should identify at least one but ideally two backups for each role," Austin says. "Estate planning is all about the unexpected, so having a plan B and plan C is a good idea."