A fiduciary is a person named in a private agreement or by a court to hold a position of trust. The fiduciary must act in the best interests while handling medical and/or financial affairs for another person either while he or she is still alive or after passing away. Examples of fiduciary roles include an agent under a power of attorney document, an executor administering a will, and a trustee managing a trust. Each of these roles have a unique set of duties and responsibilities. A fiduciary can be an individual or a corporate entity. It can also be someone you know or a paid professional.
Sometimes a person in need of a fiduciary does not have someone they trust to appoint or they may be trying to avoid family conflict. In both of these situations, they may need to look at hiring a professional fiduciary. If loved ones live far away, lack the necessary skills or trustworthiness or refuse to serve, then considering a professional to serve is a great option. While it may seem unnerving to appoint someone you do not know, professionals follow a strict code of ethics and are subject to regulation by Maryland state law.
Estate planning attorneys often run into this issue when creating an estate plan for someone who is undecided about who they should choose to serve in a fiduciary role. All too often these individuals avoid completing the appropriate documents during this period of indecision which puts them in an extremely vulnerable position. Hiring a professional fiduciary, even if for a temporary period, allows the individual to get the proper documents in place and this can always be modified later should someone surface that the individual would choose to use in this role.
Benefits of a professional fiduciary:
- Lends objective advice;
- Subject to stringent ethics rules; and
- Knowledgeable and proficient.
Cons of a professional fiduciary:
- May be expensive; and/or
- Often works with many clients leading to accessibility issues.
For more information on creating a trust or other estate planning documents and appointing a professional fiduciary to serve your best interests, contact Stouffer Legal in the Greater Baltimore area.
