Choosing the right fiduciary is one of the most important parts of estate planning. Fiduciaries are the people or institutions you trust to manage your assets and fulfill your wishes.
Under Nevada law, fiduciaries must always act in the best interests of the estate and its beneficiaries. Here are some key points to remember.
What do fiduciairies do?
The most common fiduciaries in estate planning include:
- Executor or personal representative: Carries out the terms of a will and handles probate.
- Trustee: Manages trusts according to their terms and for the benefit of the named beneficiaries.
- Agent under a power of attorney: Makes financial or medical decisions when you cannot do so.
Each has a legal duty to act honestly, avoid conflicts of interest and handle finances carefully.
What happens when a fiduciary breaches their duty?
A fiduciary who misuses funds, hides information or fails to follow the estate plan may breach their duties. For example, a trustee might pay themselves unreasonable fees or fail to distribute assets on time. In Nevada, these actions can lead to removal by the court, personal liability or both.
Beneficiaries have the right to ask for records, question decisions and raise concerns in court. If they suspect wrongdoing, they can file a petition in the Nevada probate court. A judge may order the fiduciary to return stolen assets or compensate for financial harm.
Trustworthiness should be the key criterion when choosing fiduciaries. If a fiduciary has breached their duties, you have legal options. Seek further guidance to find out more about these.