When most people think about who will manage their estate or step in if they can’t make decisions, the answer feels obvious: a spouse, an adult child, or a trusted relative. But sometimes family isn’t the best option. That’s where professional fiduciaries come in.
Clear planning around who will take on these responsibilities helps reduce conflict, ensure continuity, and give you peace of mind knowing your affairs will be handled properly.
What Is a Fiduciary?
A fiduciary is someone with the legal responsibility to act in another person’s best interests. In elder law, this role may include serving as a:
- Trustee
- Executor
- Guardian
- Agent under a power of attorney
A professional fiduciary is a neutral third party—often an attorney, accountant, trust company, or licensed professional—who takes on this role for a fee.
Why Families Choose Professional Fiduciaries
There are several benefits to naming a professional fiduciary:
- Neutrality: They make decisions without favoritism, reducing family conflict.
- Expertise: They understand the complex rules around retirement accounts, trusts, Medicaid, and tax reporting.
- Consistency: They remain available long-term, even if family members move away or pass on.
- Accountability: They’re held to high standards of conduct and can be legally liable for misusing funds.
Things to Consider
Professional fiduciaries aren’t the right fit for every family. Potential drawbacks include:
- Cost: Their services come with fees, either hourly or as a percentage of assets.
- Less personal connection: They may not know your family history, values, or personal preferences as well as a relative.
- Availability: In some areas, there may be limited licensed or qualified professionals to choose from.
When Might You Need One?
Families may consider a professional fiduciary if:
- You don’t have close family or friends you trust to make financial or medical decisions.
- You anticipate family conflict, such as siblings who don’t agree.
- You want to relieve your children or loved ones of the burden of administering your estate.
- Your estate is complex, involving ongoing businesses, rental properties, or long-term trust management.
How to Find a Professional Fiduciary
- Ask your estate planning attorney, CPA, or financial advisor for referrals.
- Check state professional fiduciary associations or licensing boards for directories.
- Explore trust companies and banks that provide fiduciary services for ongoing trust administration.
The Real Goal: Protecting Your Wishes
Appointing a professional fiduciary isn’t the right choice for everyone, but for families without clear decision-makers—or those seeking to minimize conflict—it can be a wise solution. A neutral, skilled fiduciary ensures your wishes are honored with care, professionalism, and impartiality.
Plan for the future and protect your family’s peace of mind.
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