A Different Kind of Outsourcing
Many years ago my late uncle told unpleasant for the adult child serving
my wife that he was re-doing his bath-
room plumbing. She responded with
surprise that he had the skills to un-
dertake such a big job. Of course I do,
he told her, smiling. I know how to
hire the plumber.
This is similar to a lesson I once
learned in a management course:
there’s a big difference be-
tween being in control and
being in charge. If you’re
in control, you’re the one
with the wrench and de-
pending on your skill, the
blisters. When you’re in
charge, you outsource, and
hire the guy who knows
how to use the wrench. It’s
a distinction to keep in
mind if you (1) appoint a Joseph S. Karp,
trustee, power of attorney C.E.L.A.
or personal representative of your
estate plan or (2) agree to serve in one
or more of these capacities.
Most people appoint one or more
of their adult children to serve as
trustee, power of attorney or person-
al representative. But as a 2005 Wall
Street Journal article noted (“Time-
ly Tips for Handling Parents’ Estate”),
it’s not unusual for both parents and
children to underestimate the extent
of the responsibility these jobs entail.
Even if you feel your financial and le-
gal affairs aren’t that complex, there
are other issues that may make your
fiduciary’s job more burdensome than
anticipated. Does your power of at-
torney live at such a great distance
that it would not be practical for that
person to handle your affairs if you
became disabled? Is your son’s career
so high pressure that he lacks the time
to competently administer your estate
once you’re gone, despite his best in-
tentions? Are there contentious sib-
lings who are likely to make life
as personal representative under your
will?
Fortunately, your estate plan pro-
vides your fiduciary with the option
of being the one in charge, not in con-
trol. Certain jobs are almost always
outsourced by fiduciaries: for exam-
ple, your trustee will hire a CPA to
do your estate tax return,
and your personal repre-
sentative will hire an attor-
ney if your estate must go
through probate. If you are
disabled and your child
must sell your home, he
will rely on the expertise
of a Realtor.
However, if in setting
up your estate plan you de-
cide from the get-go you
would prefer someone be-
sides a child or other relative to serve
as fiduciary, you can certainly build
this preference into your plan. Among
your options for third-party fiduciar-
ies: A bank or brokerage trust depart-
ment, or a trusted accountant or attor-
ney. It’s always best to find someone
who is an Accredited Investment Fidu-
ciary® (a certification I hold), as it
provides assurance the person you’re
appointing truly understands the job
and its obligations.
As always, see a qualified estate
planning/elder law attorney to discuss
the options that are best for your par-
ticular situation.
Joseph S. Karp is a nationally certified
and Florida Bar-certified elder law attorney
(C.E.L.A.) specializing in the practice of Trusts,
Estates and Elder Law. His offices are locat-
ed at 2500 Quantum Lakes Drive, Boynton
Beach; 2875 PGA Blvd., Palm Beach Gar-
dens; and 1100 SW St. Lucie W. Blvd., Port
St. Lucie. Call him at 561-752-4550 (Boyn-
ton); 561-625-1100 (Palm Beach Gardens);
or 772-343-8411 (Port St. Lucie). Toll-free
from anywhere: 800-893-9911. E-mail: KLF@
Karplaw.com. or website www.karplaw.com