What is a Professional Fiduciary?

Professional Fiduciary in a meeting

What is a Professional Fiduciary?

Professional Fiduciary in action

Different Types of Fiduciaries

  • Trustee: Managing assets held in trust for the benefit of beneficiaries, ensuring that the wishes of the grantor carry out the terms of the trust.
  • Guardian: Someone who assumes legal responsibility for caring for a minor or incapacitated adult, including making decisions related to healthcare, education, and housing.
  • Conservator: This person manages an incapacitated adult’s financial affairs and assets, ensuring that their financial resources are managed prudently and used for their benefit.
  • Agent Under Durable Power of Attorney: An agent acts on behalf of an individual to make financial and legal decisions due to incapacity to act.

Services Offered by Professional Fiduciaries

  • Banking and Bill Paying: Handling routine financial transactions, including paying bills, managing bank accounts, and reconciling financial statements.
  • Cash Flow Management: Monitoring income and expenses to ensure adequate cash flow for ongoing expenses and financial goals.
  • Daily Care and Housing Needs: Arranging for and overseeing the daily care, housing, and well-being of the client, including coordinating medical care and assistance with activities of daily living.
  • Estate Administration: Managing an estate’s affairs after the client’s passing, including inventory of assets and paying debts and taxes. It also includes the distribution of assets to beneficiaries based on the terms from the will.
  • Fiduciary Accounting: Involves maintaining accurate records of all financial transactions and activities on behalf of the client, providing transparency and accountability.
  • Tax Payment: Ensuring timely payment of taxes owed by the client or their estate, including income taxes, property taxes, and estate taxes.
  • Household Upkeep and Maintenance: Overseeing the maintenance and upkeep of the client’s property, including arranging for repairs, renovations, and necessary improvements.

Benefits of Professional Fiduciary Services

type of Professional Fiduciary
  • Expertise and Experience: Professional fiduciaries possess specialized knowledge and experience in financial management, estate planning, and trust administration, ensuring that clients receive expert guidance and support.
  • Objective Advice: Fiduciaries are bound by law to act in the best interests of their clients, free from conflicts of interest or personal bias. This ensures that financial decisions are made objectively and with the client’s best interests in mind.
  • Peace of Mind: By entrusting their financial affairs to a professional fiduciary, clients know that their assets are being managed competently and following their wishes. This can alleviate stress and uncertainty, particularly during transition or crisis.

Find Professional Fiduciary Services From Executor Support

Professional Fiduciary FAQs

How do professional fiduciaries differ from other financial professionals?

Professional fiduciaries differ from other financial professionals, such as financial advisors or accountants, in that they are legally responsible for acting solely in the best interests of their clients rather than providing advice or services for a fee.

When might someone need to hire a professional fiduciary?

Individuals may hire a professional fiduciary when they can’t manage their financial affairs or require assistance with economic matters such as estate planning or trust administration.

How much is the salary of a Professional Fiduciary?

A Professional fiduciary salary can vary based on factors like experience, qualifications, geographic location, and the scope of responsibilities. Professional fiduciaries earn between $50,000 and $100,000 annually in the United States. However, salaries can differ significantly, with some earning higher wages depending on specialized expertise and employer.