Simply put a fiduciary is a professional or individual advisor who agrees to acts on behalf of one or more persons. A fiduciary also accepts the legal responsibilities, duties and obligations that are required by their specific role.

These roles can be court appointed, such as a Conservator, Guardian or Personal Representative of an estate, or voluntary grants of authority, such as an appointment to act as Trustee of a trust, or through a granted Power of Attorney. In many cases, those granting these powers are individuals who, for many different reasons, wish to have a trusted advisor assume the responsibility of making legal, business and healthcare decisions in their stead.

These positions come with duties that carry legal liability if not performed with the best intention, prudence and with the utmost care.

Fiduciaries, both professional and those who have accepted the role voluntarily are required to act with:

Loyalty - and in the best interest of their clients or beneficiaries, while avoiding any conflicts of interest or self-dealing. They should also never personally benefit from their role, at the expense of their client.

Care and Competence - and the diligence that a prudent person would exercise in similar circumstances. This involves making informed decisions and taking actions that a reasonable person would consider appropriate.

Good Faith - and with honest, transparent, and fairness in all dealings. They also must not mislead or deceive their clients and must fully disclose all relevant information.

Confidentiality - and must protect the privacy and confidentiality of the information related to their clients. They also should not disclose sensitive information without proper authorization.

Adherence to the Law - must adhere to all relevant laws and regulations in their conduct and decision-making processes.

If you are now, or will soon be acting in a fiduciary role, it’s important to know that they can bring some unexpected demands and surprises. These roles are almost always much more time consuming than one anticipates and most often, making a careful and competent decision will require information you may not even be aware that you need.

Even if your expertise is broad based or you have acted in a similar fiduciary capacity before, having advisors that can help fill in the blanks is a wise step to take. Also, it is almost a guarantee that the duties you undertake will end up impacting your family relationships in some way. Anytime money and family come together, things can get interesting quickly.

Signing legal paperwork (Photo credit Cytonn Photography)

A large part of our consulting and real estate practice centers around providing the information and services our fiduciary clients need to confidently act in their roles. We’re here to be your partner through this process and to provide the one point of contact that can connect you with the other relationships and services you may need.

We’re interested in hearing your questions and your unique situation. Please contact us at info@expectmoore.com or call me directly at the number below. We’d be honored to help.

Kevin Moore,

Real Estate Broker/Advisor, Mediator and Facilitator

616-318-1322

(The author of this article and the owners of this website are not attorneys and the information presented here is not intended to constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Readers should contact their attorney to obtain advice with respect to any particular legal matter)

What is a Fiduciary?

When is Vacant Home Insurance Necessary?