ST. CROIX INSIGHTS
Choosing the Right People for Your Estate Plan: A Faith-Based Guide
When it comes to creating a strong faith-based estate plan, one of the most important decisions you’ll make is who you choose to carry out your wishes. These roles—executor, trustee, and guardian—come with great responsibility, and choosing the right people for them can have a lasting impact on your family and legacy.
As financial advisors who can help incorporate biblical wisdom into the planning process, we believe these decisions are not just legal or financial—they are spiritual. Proverbs 3:5-6 reminds us to “Trust in the Lord with all your heart and lean not on your own understanding; in all your ways submit to him, and he will make your paths straight.” That’s true for every aspect of life, including estate planning.
Let’s walk through each of these roles along with some guidance on how to select the right people to serve.
1. Executor (or Personal Representative)
The executor is responsible for settling your estate after you pass away. That includes collecting assets, paying off debts, and distributing what’s left according to your will.
Key Considerations:
- It’s a temporary role. Typically, an executor serves for 12 to 24 months.
- Locality matters. It’s helpful if the executor lives in the same state as you to avoid logistical challenges.
- Time, expertise, and willingness. Ask yourself: Does this person have the time and capacity to take this on? Do they understand what’s involved?
- Cost. Executors can be compensated—it’s common practice for executor fees to range between 2% and 5% of the estate’s value, depending on the circumstances.
- DIY or delegate? Some people prefer to name a professional (like a corporate executor) rather than burden a loved one.
2. Guardian for Minor Children
If you have minor children, naming a guardian is one of the most important decisions you’ll face. This is the person (or couple) who would raise your children if something happened to you. As harsh as it is to think about, you need to consider this because if you don’t, the courts can make it for you.
Key Considerations:
- Couples can separate. If you’re naming a couple, consider language in your documents like “as long as they remain married” to avoid future confusion.
- Financial readiness. Will this person need help upgrading their home to accommodate your children? Be sure to leave enough resources in your estate plan.
- Shared values. Make sure the person you name shares your spiritual beliefs and parenting philosophy.
3. Trustee
A trustee is the person (or institution) responsible for managing assets held in a trust—often for children, beneficiaries with special needs, or for long-term control over how funds are used.
Key Considerations:
- Length of service. Unlike an executor, a trustee may serve for decades. Age and long-term availability matter.
- Control and wisdom. A trustee should be someone who can say “no” when needed, while maintaining family harmony.
- Should your child be their own trustee? Often, we recommend children wait until age 30 or 35 before becoming their own trustee because being a trustee isn’t just about having access to funds—it’s about managing them wisely, adhering to fiduciary duties, navigating legal requirements, and making thoughtful financial decisions that align with the trust’s intent. Many young adults in their 20s, even if responsible, may not yet have the life experience or financial discernment needed to manage a significant inheritance prudently.
- Family vs. corporate trustee. A family member might know the beneficiaries well, but could it strain relationships? A corporate trustee can offer neutrality and consistency.
- Cost. A trustee managing assets and distributions might charge 0.35%–0.50%, while a full-service trustee (also managing investments) might charge up to 1.5% (or more) annually.
What About Co-Executors or Co-Trustees?
While it might seem wise to name two people to serve together, co-decision-makers can lead to complications: needing multiple signatures, disagreements, or slow decision-making. If you do use co-trustees or co-executors, be sure your documents clearly explain how decisions will be made—especially in a tie.
Don’t Forget Backups
Every role should have a contingent (or backup) person or institution listed. Life changes quickly, and the person you name today may not be able—or willing—to serve when the time comes.
Naming a corporate trustee or executor as a backstop is a wise decision. It ensures someone can step in if your primary choice becomes unavailable. Also, communicate clearly with those you’re naming: Let them know they’ve been selected, but also give them permission to decline if needed.
A Kingdom Legacy
These are weighty decisions, but they are also beautiful opportunities to reflect on your values and the legacy you want to leave. One powerful question to consider is not “How much should I leave to my children?” but rather, “How much is God calling me to leave to make a difference?” That shift in thinking may guide your giving in a more purposeful way.
Some people treat charity like another child—if you have three children, you might divide your estate into four parts: one for each child, and one for charitable giving. Others choose a dollar amount or percentage. If you name specific charities in your legal documents, changes later may require a legal amendment. Instead, consider using a Donor Advised Fund (DAF) for flexibility.
Final Thoughts
Estate planning isn’t just about money—it’s about discipleship. It’s about stewarding well what God has entrusted to you, caring for your family, and furthering His Kingdom even after you’re gone.
If you’re unsure where to start, or if you just want to talk through your options, we’re here to help—both practically and prayerfully. Contact us today.
When it comes to creating a strong faith-based estate plan, one of the most important decisions you’ll make is who you choose to carry out your wishes. These roles—executor, trustee, and guardian—come with great responsibility, and choosing the right people for them can have a lasting impact on your family and legacy.
As financial advisors who can help incorporate biblical wisdom into the planning process, we believe these decisions are not just legal or financial—they are spiritual. Proverbs 3:5-6 reminds us to “Trust in the Lord with all your heart and lean not on your own understanding; in all your ways submit to him, and he will make your paths straight.” That’s true for every aspect of life, including estate planning.
Let’s walk through each of these roles along with some guidance on how to select the right people to serve.
1. Executor (or Personal Representative)
The executor is responsible for settling your estate after you pass away. That includes collecting assets, paying off debts, and distributing what’s left according to your will.
Key Considerations:
- It’s a temporary role. Typically, an executor serves for 12 to 24 months.
- Locality matters. It’s helpful if the executor lives in the same state as you to avoid logistical challenges.
- Time, expertise, and willingness. Ask yourself: Does this person have the time and capacity to take this on? Do they understand what’s involved?
- Cost. Executors can be compensated—it’s common practice for executor fees to range between 2% and 5% of the estate’s value, depending on the circumstances.
- DIY or delegate? Some people prefer to name a professional (like a corporate executor) rather than burden a loved one.
2. Guardian for Minor Children
If you have minor children, naming a guardian is one of the most important decisions you’ll face. This is the person (or couple) who would raise your children if something happened to you. As harsh as it is to think about, you need to consider this because if you don’t, the courts can make it for you.
Key Considerations:
- Couples can separate. If you’re naming a couple, consider language in your documents like “as long as they remain married” to avoid future confusion.
- Financial readiness. Will this person need help upgrading their home to accommodate your children? Be sure to leave enough resources in your estate plan.
- Shared values. Make sure the person you name shares your spiritual beliefs and parenting philosophy.
3. Trustee
A trustee is the person (or institution) responsible for managing assets held in a trust—often for children, beneficiaries with special needs, or for long-term control over how funds are used.
Key Considerations:
- Length of service. Unlike an executor, a trustee may serve for decades. Age and long-term availability matter.
- Control and wisdom. A trustee should be someone who can say “no” when needed, while maintaining family harmony.
- Should your child be their own trustee? Often, we recommend children wait until age 30 or 35 before becoming their own trustee because being a trustee isn’t just about having access to funds—it’s about managing them wisely, adhering to fiduciary duties, navigating legal requirements, and making thoughtful financial decisions that align with the trust’s intent. Many young adults in their 20s, even if responsible, may not yet have the life experience or financial discernment needed to manage a significant inheritance prudently.
- Family vs. corporate trustee. A family member might know the beneficiaries well, but could it strain relationships? A corporate trustee can offer neutrality and consistency.
- Cost. A trustee managing assets and distributions might charge 0.35%–0.50%, while a full-service trustee (also managing investments) might charge up to 1.5% (or more) annually.
What About Co-Executors or Co-Trustees?
While it might seem wise to name two people to serve together, co-decision-makers can lead to complications: needing multiple signatures, disagreements, or slow decision-making. If you do use co-trustees or co-executors, be sure your documents clearly explain how decisions will be made—especially in a tie.
Don’t Forget Backups
Every role should have a contingent (or backup) person or institution listed. Life changes quickly, and the person you name today may not be able—or willing—to serve when the time comes.
Naming a corporate trustee or executor as a backstop is a wise decision. It ensures someone can step in if your primary choice becomes unavailable. Also, communicate clearly with those you’re naming: Let them know they’ve been selected, but also give them permission to decline if needed.
A Kingdom Legacy
These are weighty decisions, but they are also beautiful opportunities to reflect on your values and the legacy you want to leave. One powerful question to consider is not “How much should I leave to my children?” but rather, “How much is God calling me to leave to make a difference?” That shift in thinking may guide your giving in a more purposeful way.
Some people treat charity like another child—if you have three children, you might divide your estate into four parts: one for each child, and one for charitable giving. Others choose a dollar amount or percentage. If you name specific charities in your legal documents, changes later may require a legal amendment. Instead, consider using a Donor Advised Fund (DAF) for flexibility.
Final Thoughts
Estate planning isn’t just about money—it’s about discipleship. It’s about stewarding well what God has entrusted to you, caring for your family, and furthering His Kingdom even after you’re gone.
If you’re unsure where to start, or if you just want to talk through your options, we’re here to help—both practically and prayerfully. Contact us today.