There are certain types of support that are deeply personal and that come with a degree of risk for the individual who needs help. If another person has to take control over someone’s finances or medical care, for example, it is natural that they might worry about someone abusing that power.
Those in certain situations involving business arrangements or family obligations in which one or more parties may have a fiduciary duty to others. A fiduciary duty requires that one party put the best interests of another before their own. A fiduciary is someone in a position of trust and authority who acts on behalf of another party.
What does it mean for a professional to provide fiduciary services, and who generally needs that kind of help?
Professional fiduciaries handle complex needs
Fiduciary services involve professionals performing specific services for individuals, businesses or trusts. A professional fiduciary could assume a guardianship role over a vulnerable adult when they do not have any nearby family members to act on their behalf. They could also hold authority over medical and financial matters through durable power of attorney paperwork.
A professional offering fiduciary services could administer a trust or an estate for an individual. They could manage financial accounts, pay bills and oversee the administration of medical treatment when a person becomes incapacitated. Fiduciary services can even offer certain legal, financial and management resources for businesses.
Who needs a professional fiduciary?
People in many different circumstances may require fiduciary services. Perhaps someone created a trust and named their children as beneficiaries. They may want an unrelated professional to administer the trust to prevent embezzlement and other conflicts.
Those without close family members may rely on fiduciary services for estate matters or their protection if they experience some kind of incapacitating emergency. Those who have families but who do not want to stress their family members or feel they cannot trust them in an emergency could also benefit from securing professional fiduciary services.
Anyone hoping to entrust another party with tasks that could have a major impact on their well-being might require fiduciary services. Hiring the right professionals can have a major impact on someone’s security and quality of life.
