Fiduciary Services
A fiduciary is someone you designate to act on your behalf. A fiduciary includes people serving as a health care agent, attorney-in-fact, personal representative, trustee, guardian, or conservator. A fiduciary’s duties will be created by the document naming them as your fiduciary or by law.
A health care agent is responsible for making medical decisions if your physician determines you are unable to make or communicate your own decisions. The agent will make decisions relating to medication, medical care, hospitalization, surgeries, and life sustaining treatments.
An attorney-in-fact is responsible for managing all aspects of your finances. The attorney-in-fact can start managing your assets the moment a power of attorney is signed or at the point in time you become unable to manage them on your own. The attorney in fact will collect income, pay bills, file tax returns, and make investment decisions.
The personal representative of your Will collects, manages, and protects your assets, pays your debts and funeral expense, prepares and files federal and state income tax returns, pays income taxes required to be paid be your estate, pays expenses of the administration of your estate, and distributes your estate in the manner directed by your will.
A trustee of your Trust collects, manages and protects your assets, works with and coordinates with your personal representative in the administration and distribution of estate assets, prepares and files federal and state income tax returns, pays income taxes, pays expenses as directed by your personal representative, pays expenses of the Trust, keeps beneficiaries informed and provides an annual accounting to beneficiaries, and distribute your trust assets as directed by your Trust.
Since fiduciaries make important decisions regarding your health, assets, and finances, you should only choose someone you fully trust, such as a spouse. When people have no close or trusted family members or friends to serve as their fiduciary, they can nominate a professional to serve as a fiduciary. Examples of professional fiduciaries include banks and trust companies, investment advisors, accountants, bookkeepers, financial institutions, and attorneys.
An attorney or other professional is a good choice for a fiduciary in the following scenarios:
You do not have any living family members of legal age;
Your prior fiduciary passed away or has become unable to perform their duties and you have not named a successor;
You do not want to burden family or friends with management or financial obligations; or
You do not fully trust friends or family members to act in your best interests.
There can be benefits and risks to choosing a family members or professionals as a fiduciary. We are happy to discuss these benefits and risks with you further.
Attorneys at the firm can serve as Attorney-in-Fact under Durable Powers of Attorney, Health Care Agents, Conservator, Guardian, Personal Representative, and Trustee.