Fiduciary Issues: Selection; Successors; Resignation; Removal and Compensation - 3 Clauses (4 Pages)

CLAUSE 1: Appointment of Personal Representatives, Trustees and Guardians; Waiver of Bond
CLAUSE 2: Resignation, Replacement and Appointment of Successor Fiduciaries
CLAUSE 3: Compensation of Fiduciaries
 

The identification of the proper persons to occupy the roles of personal representative (executor), trustee and guardian are, of course, important decisions to be made in every estate planning situation. It is also important to address possible successors in the same plan, in case a person selected predeceases the testator, or survives the testator but is unable or unwilling to serve. Since most jurisdictions still require a fiduciary to post a bond when they are appointed, most Wills include language, permitted by state laws, directing the any requirement to post a bond be waived. (Clause 1) is a provision to name fiduciaries and their successors and to provide for the waiver of a fiduciary bond.                               

It is also important to consider that persons named as fiduciaries may, after their service has commenced, die, or decide or be forced to resign their appointments. It is important to include a provision in the Will to allow a smooth transition from a deceased or resigning trustee to a successor trustee. Often, this includes giving various persons the right to choose a successor trustee. Those persons may be the spouse of the testator, or another beneficiary under the testator’s Will, or a trusted friend or counselor. Other situations, especially if corporate fiduciaries are serving, may suggest the need to replace a corporate fiduciary, generally requiring that a replaced corporate fiduciary be succeeded by another corporate fiduciary. (Clause 2) is a provision to address the issues of resignation, replacement and appointment as discussed herein, as well as the issue of the relationship among the fiduciaries...

Author:
Steven G. Siegel is president of The Siegel Group, a Morristown, New Jersey - based national consulting firm specializing in tax consulting, estate planning and advising family business owners and entrepreneurs. Mr. Siegel holds a BS from Georgetown University, a JD from Harvard Law School and an LLM in Taxation from New York University.

He is the author of several books, including: Planning for An Aging Population; Business Entities: Start to Finish; Taxation of Divorce and Separation; Income Taxation of Estates and Trusts, Preparing the Audit-Proof Federal Estate Tax Return, Putting It Together: Planning Estates for $5 million and Less, Family Business Succession Planning, Business Acquisitions: Representing Buyers and Sellers in the Sale of a Business; Dynasty Trusts; Planning with Intentionally-Defective Grantor Trusts; The Federal Gift Tax: A Comprehensive Analysis; Charitable Remainder Trusts, Grantor Trust Planning: QPRTs, GRATs and SCINs, The Estate Planning Course, The Retirement Planning Course, Retirement Distributions: Estate and Tax Planning Strategies; The Estate Administration Course, Tax Strategies for Closely-Held Businesses, and Tort Litigation Settlements: Tax and Financial Issues.

Mr. Siegel has lectured extensively throughout the United States on tax, business and estate planning topics on behalf of numerous organizations, including National Law Foundation, AICPA, CCH, National Tax Institute, National Society of Accountants, and many others.  He has served as an adjunct professor of law at Seton Hall and Rutgers University law schools.

The Siegel Group provides consulting services to accountants, attorneys, financial planners and life insurance professionals to assist them with the tax, estate and business planning and compliance issues confronting their clients. Based in Morristown, New Jersey, the Group has provided services throughout the United States. The Siegel Group does not sell any products. It is an entirely fee-based organization.