Four fiduciary roles compared
| Role | Handles | Acts |
|---|---|---|
| Executor | A probate estate | After death, once the court appoints them |
| Trustee | Trust property | As the trust provides |
| Financial agent | Financial and legal matters under a power of attorney | During life, as the document provides |
| Health-care agent | Health decisions | When authorized under the directive |
Match the person to the role
Consider reliability, financial judgment, communication, location, health, family dynamics, recordkeeping, conflicts, and willingness. One person can fill several roles, but that is not always the best design.
Plan around friction
Co-fiduciaries can add oversight but may also create delay or deadlock. A neutral professional may help when assets are complex, family relationships are strained, or long-term administration is likely.
Always name a workable backup
A plan can stall when the first choice cannot act.
- Ask before naming someone
- Name at least one successor
- Consider age and geographic distance
- Address compensation
- Separate conflicting roles
- Document how successors are confirmed
Do the executor, trustee, and agent have to be the same person?
No. They do different jobs at different times. An agent acts during your life, a trustee manages trust property, and an executor settles the estate.
Many families use one person for two roles and a second person for the third.
What qualities matter most in a fiduciary?
Honesty, organization, availability, and the ability to stay calm when family is upset. Financial expertise helps, but a careful person with a good lawyer and accountant can do the job well. Age and health matter, since the roles can last for years.
Can I name a bank or trust company?
Yes. A professional fiduciary offers continuity and experience, and it charges fees.
Some families pair a family member with a professional. A trust company may have minimums, so ask about them.
Can I name co-executors?
Yes. It can help when children live in different places or when you want checks and balances; it can also slow decisions and cause deadlock. Say in the document whether they must act together or can act alone.
Should I choose the oldest child by default?
No. Birth order says nothing about ability or willingness. Choose the person who is best suited, and explain your reasoning to the family in advance so nobody is hurt.
What happens if my first choice cannot serve?
The successor you named steps in. If nobody is named, the Probate Division appoints someone, following the statute's order of priority for administrators. Naming backups for each role avoids that.
Can my executor live out of state?
Often yes, but the Judiciary requires a non-resident to appoint a Vermont resident agent; a distant executor may find the work harder, especially with a house to manage. A local co-executor is a common fix.
Can my executor also be a beneficiary?
Yes, this is very common. The person then has a personal interest, so they should be careful to document decisions. If a fiduciary is also the sole heir, the court may waive some supervision on a sworn motion, as long as no Vermont real estate is owned.
How do I make sure the person will say yes?
Ask. Explain the job, the time it takes, and how the fee works; give them a chance to decline, since a reluctant fiduciary can hurt the estate. The Judiciary notes the court will not force anyone to serve.
Can fiduciaries be paid?
Yes. An executor gets reasonable fees and expenses, a trustee gets reasonable compensation, and an agent may be reimbursed and compensated under the Act. Many family members waive fees, and you can say so in the documents.
What is a conflict of interest for a fiduciary?
A situation where the fiduciary's own interest could pull against the duty to the estate or trust, such as buying estate property or favoring one beneficiary. Disclose it, avoid the deal, or get the court's or beneficiaries' approval.
How should I let my fiduciaries know what I want?
Give them a written list of contacts, accounts, and wishes, plus a plain summary of the plan; a letter of instruction is not binding but it is very useful. Tell them where the originals are kept.
Sources and further reading