When you create an estate plan, you want to protect your assets and make sure your wishes guide every decision. Understanding fiduciary duty helps you achieve this. In Arkansas, fiduciary duty means a person you trust must act in your best interest with loyalty and care.
What does fiduciary duty mean?
Fiduciary duty requires the person handling your estate to act honestly, responsibly, and with complete loyalty to you. They must avoid any conflicts of interest and always put your needs and wishes ahead of their own. This duty applies when they manage your property, pay your bills, or distribute your assets.
Who has fiduciary duty in estate planning?
In Arkansas, executors of wills, trustees of trusts, and agents with powers of attorney hold fiduciary duties. Executors manage the probate process after you pass away. Trustees oversee any trusts you set up, making sure assets reach the right people at the right time. Agents with powers of attorney manage your financial or medical decisions if you become unable to do so.
Why does fiduciary duty matter for your estate plan?
Fiduciary duty safeguards your estate from mismanagement or abuse. When someone holds this duty, they act carefully and in good faith. This protects your assets and ensures you control how others use them. If a fiduciary fails in their duty, courts can remove them and impose legal consequences.
Knowing what fiduciary duty involves lets you choose the right people for your estate plan. You can pick individuals who will act in your best interest and set clear instructions to avoid confusion or disputes later. This understanding gives you peace of mind that your estate will follow your directions.