The Hidden Burden: What It Really Means to Serve as an Executor, Trustee, or Agent Under a Power of Attorney

An 80-year-old widower relied on his adult daughter for help with daily life and finances for more than a decade. Acting under a valid financial power of attorney, she managed his accounts, pension income, and even the proceeds from the sale of his home. What began as simple assistance gradually became full financial responsibility.

After her father’s death, her brother—appointed as executor—sued her for breach of fiduciary duty. A court ordered her to repay more than $15,000 to the estate, along with $35,000 in attorney’s fees.

There was no allegation of abuse or bad intent. By all accounts, the father was well cared for. The issue was process: incomplete records and a failure to strictly separate funds created legal exposure.

This was not a theoretical example. It was drawn from a case discussed by the American Bar Association.

For families in Midland and Saginaw, Michigan, and in Murfreesboro, Nashville, Franklin, and across Rutherford County, Tennessee, the lesson is straightforward: fiduciary roles are not ceremonial. They carry real legal standards and personal risk. Part of responsible estate planning is not only choosing the right people—but preparing and supporting them so avoidable problems never arise

These Roles Carry Real Legal Weight

Most professionals understand what it means to be a fiduciary. Attorneys, CPAs, and financial advisors operate under a legal duty to act in another’s best interest.

What is often overlooked is that the same standard applies to the individuals named in an estate plan.

Executors (personal representatives), trustees, and agents under powers of attorney are fiduciaries. If they make mistakes, maintain inadequate records, or blur financial boundaries—even unintentionally—they may face personal liability, court proceedings, and family conflict.

In our experience working alongside advisors in Middle Tennessee and Mid-Michigan, the majority of fiduciary disputes do not arise from misconduct. They arise from inexperience, lack of structure, and unclear expectations.

“I didn’t know” is rarely a sufficient defense.

Thoughtful planning can clear the path in advance—reducing administrative friction, preventing unnecessary probate trouble, and quietly handling what would otherwise become problems.

Understanding the Roles—and the Risk

Agent Under a Power of Attorney

The Role


Manages financial affairs during lifetime incapacity. This may include banking, investments, bill payment, and real estate transactions.

Where Problems Arise


Informal reimbursements. Commingled funds. Incomplete documentation. Family disagreements that surface later—often after death.

Potential Consequences


Repayment demands, legal fees, court involvement, and fractured family relationships.
Even in well-intentioned families, the absence of clear accounting standards can create suspicion after the fact.

Executor (Personal Representative)

The Role


Administers the estate after death: gathering assets, paying debts and taxes, and distributing property under the will and applicable law.

Where Problems Arise

Delays, communication breakdowns, perceived favoritism, missed deadlines, or procedural missteps in probate court.

Potential Consequences


Removal by the court, personal liability, prolonged probate administration, and diminished estate value.
When probate cannot be avoided, efficient and discreet administration becomes critical. The goal is not merely to “get through court,” but to reduce strain on the family and protect the integrity of the estate.

Trustee

The Role


Manages and distributes trust assets according to the trust terms—sometimes for many years.

Where Problems Arise


Misinterpretation of distribution standards. Inconsistent decision-making. Inadequate reporting. Beneficiary distrust.

Potential Consequences


Surcharge claims, removal proceedings, litigation costs, and erosion of trust assets.
Trust planning is designed to smooth transitions and prevent court involvement. But without competent administration, even well-drafted trusts can become sources of conflict.

The Overlooked Cost

Legal exposure is only part of the burden.

Fiduciaries frequently devote hundreds of hours to administration—often during periods of grief. Emotional stress can cloud judgment. Administrative complexity increases the likelihood of error.

Professional fiduciaries commonly charge between 1–2% of managed assets. In many cases, that cost is modest compared to the financial and relational damage caused by delay or litigation.

Another practical option is to compensate family fiduciaries at a comparable rate. The role is substantial. Treating it as such often improves accountability and reduces resentment.

For advisors counseling clients with growing estates, blended families, business interests, or strained dynamics, the question is not whether the fiduciary is trustworthy. It is whether they are equipped.

Preparation Is as Important as Selection

Selecting a fiduciary is not simply a matter of loyalty. It requires consideration of:

• Time and organizational capacity
• Emotional steadiness under stress
• Willingness to follow formal processes
• Ability to work collaboratively with professional advisors

Clients should also ask:

• Does this person know they have been named?
• Do they understand what the role entails?
• Have expectations been clearly communicated?
• Are key documents and contacts organized and accessible?
• Is there a backup plan?

Effective estate planning is not document creation alone. It is risk reduction. It is clearing the path so that family members are not left navigating uncertainty.

In our work with families across Michigan and Tennessee, we have found that modest preparation—such as organized records, written guidance, and pre-appointment conversations—often prevents significant conflict later.

For trusted advisors, these conversations are an opportunity to serve clients at a deeper level. A well-prepared fiduciary reduces probate complications, preserves family relationships, and protects the broader planning strategy.

A Collaborative Approach

There are situations where appointing a professional fiduciary—or naming one to serve alongside a family member—makes practical sense. In other cases, family members can serve effectively with appropriate legal, tax, and administrative support.

Our role is not to replace trusted advisors. It is to work alongside them—ensuring that estate planning truly eliminates problems rather than deferring them.

For advisors in Midland, Saginaw, Murfreesboro, Nashville, Franklin, and throughout Rutherford County, we welcome the opportunity to collaborate when these questions arise. We are happy to help think through fiduciary structure, probate avoidance strategies, and practical steps that reduce risk before it becomes conflict.