Choosing An Executor
The executor is the individual or institution such as HSBC appointed by a will to carry out the administration of an estate and the distribution of assets. The task, never easy, has become more onerous in recent years as estates have grown, tax and other laws have become more complex, and beneficiary expectations have expanded.
An executor must be utterly trustworthy, and able to devote time to executorship duties, often at the expense of his or her own obligations. He or she must also have the necessary breadth of expertise to carry out the numerous tasks quickly and efficiently and be perceived as impartial by all the beneficiaries.
The task can be made more manageable when the testator (e.g. the will maker) has a professionally drawn will and keeps complete accurate financial records. These should be readily accessible to the executor on death. An executor should be advised of his or her appointment and be aware of the location of the latest will and any codicils.
Power of Attorney
A power of attorney is a legal document by which an individual designates a third party to act on his or her behalf with respect to financial affairs in specific circumstances and subject to defined conditions. Each state has its own laws dealing with powers of attorney, but two common features are that an individual needs to be mentally competent to execute a power of attorney, and that such powers end upon the death of the donor. Powers of attorney may be drafted to continue after subsequent mental incompetence.
This is a dynamic area of law and the powers given can be extensive. In view of the risks, legal advice is crucial before completing a power of attorney, and any individual appointed must be regarded as absolutely trustworthy.
Securities and annuities are provided by Registered Representatives and Insurance Agents of HSBC Securities (USA) Inc., member NYSE/FINRA/SIPC, registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary of HSBC Holdings plc.
Insurance products are offered through Insurance Agents of HSBC Insurance Agency (USA) Inc., a wholly-owned subsidiary of HSBC Bank USA, N.A., an affiliate of HSBC National Bank USA, and an indirectly wholly-owned subsidiary of HSBC Holdings plc. Products and services may vary by state and are not available in all states.
Securities, Annuities and Insurance Products are:
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NOT A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES |
NOT FDIC-INSURED |
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY |
NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES |
MAY LOSE VALUE |
HSBC Securities (USA) Inc. or any other member of the HSBC Group may from time to time underwrite, perform or seek to perform investment banking services for issuers or make a market or otherwise buy or sell as principal securities or other instruments, or together with the issuers directors, officers and employees may have either a long or short position in securities, commodities, currencies or other instruments or futures or options contracts convertible into securities or other instruments.
All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor.
