When you plan your estate, you record your wishes with regard to the way you want your assets to be transferred after you pass away. Everyone is aware of this element, but it is also important to consider the estate administration process that will be initiated.
An executor is the administrator of an estate when a will is used. This individual or entity is called a fiduciary in a formal sense, and they have a legally binding duty to the estate and the beneficiaries.
The executor must serve the best interests of the beneficiaries and the estate without regard to their own interests. This is a simple definition of a fiduciary relationship.
Trustee
A living trust is a good alternative to a simple will for a few different reasons. First, the estate administration process is streamlined because probate is not a factor, and the trust will hold all or most of the assets that comprise the estate.
There are asset protection advantages after you are gone because the trust becomes irrevocable. In addition, you can set up any type of distribution schedule that you choose. This gives you the ability to prevent reckless spending by allowing the trustee to provide limited payouts over time.
You would be the trustee while you are living, and you would name a successor to step into the role after your death. Once again, the successor trustee would have a fiduciary duty to adhere to the terms of the trust and serve the best interests of the beneficiary or beneficiaries.
The revocable living trust is just one of many different types of trusts. There are irrevocable trusts that are used for different purposes, including estate tax efficiency and nursing home asset protection. The trustee of this type of trust would have the same fiduciary duty.
Guardian
A significant percentage of elders become unable to handle their own affairs. Alzheimer’s disease strikes over 30 percent of the oldest old, and there are other causes of cognitive impairment and physical incapacitation.
If you do not take any steps in advance to address this possibility and you become incapacitated, the state could be petitioned to appoint a guardian to act on your behalf. You would become a ward of the state under these circumstances.
When a guardianship is in place, the guardian has a fiduciary duty to the ward. In addition to adult guardianship, there are also guardians for minors that have fiduciary responsibilities to the children.
You can prevent a guardianship and name your own decision-maker in advance if you execute a durable power of attorney. The “durable” designation allows the power of attorney to remain in effect upon the incapacitation of the grantor, so it is quite relevant.
An incapacity plan will typically include a power of attorney for property and a power of attorney for health care decision-making. The agent or agents that you name to represent you would have a fiduciary duty to act in your best interests.
Other Fiduciary Relationships
Every attorney has a fiduciary duty to their clients, regardless of the area of specialization. Retirement plan administrators have a fiduciary relationship with retirees, and a corporate board of directors will have a fiduciary duty to protect the interests of the shareholders.
These are a handful of scenarios, and there are others. It is good to know that a fiduciary is bound by law to act in your best interests if you average one of these relationships.
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Since you are here, you must be looking for information about estate planning in Hilton Head, South Carolina. You are definitely in the right place because we go the extra mile to provide educational materials on this site.
There are countless blog posts that are still relevant that you can check out, and we add new content all the time. In fact, you may want to bookmark this page and come back to visit to stay up to date.
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Look around at your convenience and take full advantage of these useful resources.
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Attorney Hunter Montgomery conducts seminars and webinars on an ongoing basis. The sessions are chock full of useful information, and it is presented in an understandable, down to earth manner.
We get very positive feedback from attendees, so we urge you to join us at one of our special events. There is no admission charge, and in addition to the information that you will be able to digest, you have a chance to make an initial connection with our firm.
You can visit our special events schedule page to learn more. And while you’re there, you will see that we have also recorded a live webinar. This recording can be accessed on-demand, so you can view it at any time, and this is another free resource.
Need Help Now?
Our doors are open if you are ready to work with a Bluffton, SC estate planning lawyer to put a plan in place.
Each situation is different, and the right approach will depend on the circumstances, so personalized attention is key. This is exactly what you will receive when you choose our firm.
Going forward, we will always be available to update your existing estate plan when revisions are necessary. Moreover, we can be called upon by your family to assist during the estate administration process if they need some guidance.
You can send us a message to schedule a consultation appointment, and we can be reached by phone at 843-815-8580.
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- How Long Will My Heirs Have to Wait for Their Inheritances? - July 15, 2026
