Why Do You Need a Fiduciary
A Fiduciary within California is a licensed professional who provides critical services to seniors, persons with disabilities, and children. Fiduciaries have a legal and/or ethical relationship with the person they serve, known as the beneficiary. Their primary responsibility is to act in the beneficiary’s best interests. They manage ‘matters’ for clients to include both financial management, housing and medical needs as well as investment management. Services are broad and include help with paying bills and organizing tax documents, securing the right housing support, assisting with medical appointments, and serving as a Trust or Estate Administrator or a Conservator.
To become a licensed fiduciary in California, one must: have a bachelor’s degree, pass an exam, complete 30 hours of approved education courses, earn 15 hours of continuing education credit each year, have a clean background check, and be bondable.The bond is required by the Courts to ensure and guarantee that the fiduciary performs their duties ethically and in accordance with state law.
Fiduciary duties include duty of care, loyalty, good faith, confidentiality, prudence, and disclosure. When you’re named a fiduciary and accept the role, you must – by law – manage the person’s money and property for their benefit, not yours.
Some specific examples on services include:
Estate Executor
Notifying potential heirs and creditors, inventorying the deceased assets, resolving debts, and distributing inheritances
Trustee
Fulfilling their responsibilities of executing the requirements laid out in the Trust per the Settlor’s wishes and acting in the beneficiaries’ best interests
Conservatorship
Providing services for those who are mentally or physically incapacitated
Agent Under a Power
Acting as an agent for someone who has given them power of attorney to make financial decisions like paying bills and medical decisions.
A Professional Fiduciary
Has Basic Duties:
Act Only in Their Best Interest
Manage the Client’s Money and Property Carefully
Fiduciaries have important financial responsibilities and must carry them out with care. They might pay bills, oversee bank accounts, and pay for things they need. They might also make investments, pay taxes, collect rent or unpaid debts, and get insurance for them, if needed.
Must Keep Their Money and Property Separate from Clients
