Appointing Professional Executors, Trustees, and Attorneys

There are many reasons why appointing a professional Executor, Trustee, or Attorney can be beneficial.

1. The clue is in the name! Estate administration, Trusts and managing someone's affairs are not always straightforward tasks. These roles are our profession, and we spend years training to become experts in these areas, meaning the complexity of the matters can often be best left to the professionals. 
2. Mistakes cost money. There are no rules against lay people acting as Executors, Trustee or Attorney. In some cases, it is entirely appropriate. However, a common misconception is that appointing friends and family will save the Estate, Trust, or individual money as the costs of the professional are not incurred. We often assist lay individuals who come to us when they have tried to act alone, but things have gone wrong. This could include Inheritance Tax Reliefs in Estates not being claimed, Trusts receiving penalties and accruing interest for exit charges, anniversary charges and income tax not being dealt with or Attorneys who have unknowingly acted outside of the powers granted to them. Contrary to common belief, the costs incurred by a professional Executor, Trustee or Attorney will often be considerably less than the costs of remedying the mistakes of a layperson. 
3. Avoid the burden. Estate and Trust administration, along with managing someone's affairs, can be very timely, particularly where the individual has their own work, family, and social life to balance. Many people decide that their family or friends have too many other commitments in their life to fit in taking on these roles. Instead, they appoint a professional and save their loved ones the burden, which can be particularly helpful when these roles arise because of a family death or one losing mental capacity, as these experiences carry their own difficulties and stresses. 
4. Prevent disputes. Some individuals have friends and family who they think may be able to take on these roles, but due to family dynamics, such appointments could cause a family dispute. This could arise in circumstances where a couple has children who do not get along, there is mistrust of a particular individual, or you believe someone could make a claim against your Estate due to being omitted from the Will. Disputes in Trusts, Estates and managing someone's affairs can be very costly and professional involvement is almost always necessary to resolve the problem. There are often legal costs on both sides to reach an agreement and additional costs to unravel the mistakes made. For individuals who can foresee a potential dispute in their family, it would be wise to consider professional involvement from the outset to prevent spiralling costs.
5. Lack of alternatives. Many of our clients choose professionals to act as their Executor, Trustee or Attorney, as there is no one else to take on the role. This could be because someone has limited family or their close relatives are incapacitated, irresponsible, unwell, abroad or minors. It could also be because the individual intends to keep funds out of their loved ones' control/Estate. Professionals can be useful appointments to give individuals peace of mind to ensure their affairs will be looked after.

This question can only be answered considering your individual circumstances.

Here at Myerson, we would always advise on both professional and non-professional appointments and discuss the advantages and drawbacks of each approach, as this is unique to your position to allow you to make a fully informed decision.