There are many different terms associated with the administration of a trust, a will or an estate. One common example is the term fiduciary. This refers to an individual who has the legal obligation and power to act on behalf of someone else in situations that require honesty, trust and loyalty.

Fiduciaries have a legal responsibility to act in the best interests of the person who is delegated this responsibility or the beneficiaries associated with the strategies in question.

Fiduciaries can serve in a variety of roles in your estate, both during your life and after you pass away. Fiduciaries can include professionals like bankers, accountants, real estate agents, mortgage brokers, business advisors and financial advisors. One of the most common ways that you will come into contact with a fiduciary is by determining who will serve in the role of executor of your estate.

The executor of your estate should be someone that you trust to handle the important aspects of closing out your formal estate. This requires careful consideration of the beneficiaries and assets in play and the complexities associated with administering your estate.