My parents' financial planner wants to be named as executor of the will and financial power of attorney. We are in California.
Maybe, if there is no one else who it makes sense to name. There are not enough facts to determine whether or not this is a good idea in your parents' case. The reason NOT to do it would be that the executor can charge a fee for his services. If this is a family member, they often do not charge. If there is no compelling reason to make the financial planner executor, I am not sure why they would want to do so, offhand.
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In this day and age of fraud and financial desperation, I would run from this man. This is a real problem. By the way, what do your parents want? A lot of financial planners are prohibited to serve like this. Call a place like Fidelity Investments or any other large firm and you will see that they have a policy against so serving. Do yourself a favor and get involved with your parents in a caring way.
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For more on talking with aging parents about this topic please read Estate Planning For Elderly Parents: Discussing Finances and Estate Planning with Your Aging Parents at the following link:
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Hope this helps.
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4 lawyers agree
Divorce / Separation Lawyer
To me it doesn’t seem appropriate for your financial planner to serve as executor and financial power of attorney, although, it sounds lucrative for the financial planner.
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3 lawyers agree
Estate Planning Attorney
I agree with Mr. Fromm. In my experience most financial planners' broker-dealers prohibit them from acting as a trustee or executor in a client's estate.
I'd be very wary of any financial planner who's lobbying for the job.
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Estate Planning Attorney
I agree with Mr. Fromm and Ms. Brewer. If this financial advisor is the one who is proposing to have your parents name him as executor & agent under the durable power of attorney, that is a huge red flag. Like Ms. Brewer pointed out, most broker-dealers prohibit their advisors from acting as an executor or successor trustee for their clients because it creates at least a potential conflict of interest. If your parents are looking for someone to act as executor and don't have a family member that they want to fill that role, they should consider naming a private professional fiduciary as executor (assuming the estate is large enough that a private professional fiduciary would take it on). Good luck!
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