What is a professional fiduciary?
A professional fiduciary is entrusted with responsibilities for another person’s affairs. Depending on their role and legal authority, this may include finances, health-care decisions, a trust or an estate.
Some people arrange support during their lifetime. Others name someone to serve if they become unable to manage their affairs, or after their death. The authority to act comes from the relevant legal documents or court appointment, not simply from being hired.
California generally requires professional fiduciaries to be licensed, subject to statutory exemptions. Verify the individual’s qualifications and authority for the work you need.
What does a professional fiduciary do?
Depending on their appointment, a fiduciary may:
- Manage authorized financial matters under a power of attorney, including bills and coordination with tax and investment professionals.
- Make authorized health-care decisions under an advance health care directive.
- Administer a trust and distribute assets according to its terms.
- Serve as an executor or other personal representative of an estate.
- Serve as a court-appointed conservator or guardian.
These roles have different responsibilities and limits. One appointment does not automatically authorize every service.
Why might someone hire one?
You might consider a professional fiduciary if family or friends live far away, are unavailable, or would find the responsibilities difficult to manage. Professional support may also be useful when assets are complex, beneficiaries need ongoing assistance, or an independent person could help manage sensitive family dynamics.
What does it cost?
Fees depend on the role, complexity and services involved. Ask for a written fee schedule explaining billing, minimum charges, expenses and fees for outside professionals.
California probate compensation generally follows statutory rules. Court authorization is required before ordinary or extraordinary compensation is paid. Trust and other fiduciary arrangements follow different rules; ask your attorney how they apply.
How do I find and choose someone?
Your estate-planning attorney can help identify suitable candidates. The Professional Fiduciary Association of California also offers a member directory. Verify an active California fiduciary license and review available disciplinary information through the Professional Fiduciaries Bureau.
Ask about:
- Experience with situations like yours.
- Communication, reporting and emergency availability.
- Fees, insurance and safeguards for money and personal information.
- Conflicts of interest and use of outside providers.
- Who steps in if they cannot continue serving.
Discuss your wishes, values and expectations before making a decision.
How Silver Wave Services can help
Silver Wave works with and supports professional fiduciaries and helps families connect with one when needed. We help coordinate services and independent providers; we do not replace your attorney or appointed fiduciary.
Joseph Lynch is working toward his California professional fiduciary license. His professional fiduciary services are not currently available and remain pending licensure.
Disclaimer
This guide is for general education, not legal, tax or investment advice. Consult your attorney before appointing a fiduciary or changing your estate plan.