How do I choose a fiduciary?
Fiduciaries are obligated to provide loyal and reasonable care of client assets for the beneficiary. Having a respectful and trustful relationship is therefore key when choosing a fiduciary. To best serve your needs, choose a fiduciary that you can maintain a long-term trusting relationship with. Remember that the fiduciary role requires a position of great trust, integrity, responsibility, and care – find someone that you think with provide the best service you need.
Kosbie Fiduciary & CPA Services
What is a Fiduciary?
A fiduciary is a trained and knowledgeable professional who has taken on a position of trust and responsibility to act for another person’s benefit. We are advocates for our clients by assisting them in protecting themselves, their property, and their wishes for the future beneficiaries of their estates.
Fiduciaries often act as intermediaries - working with families, health care providers, financial planners, and attorneys - to make sure that our client’s interests are being met. Our job is not to replace these professionals, but rather to provide the responsible leadership and underlying structure necessary to allow each professional to seamlessly integrate their services for the welfare of the client.
Where can I get help looking for a fiduciary?
The Professional Fiduciaries Association of California provides listings of certified fiduciaries and stipulates “All fiduciaries affiliated with the Professional Fiduciary Association of California (PFAC) must fulfill education and experience requirements. In addition, PFAC members are governed by a stringent Code of Ethics. PFAC members must meet annual educational requirements and standards set by the organization.” In answer to the question “Who oversees fiduciaries?”, PFAC guidelines further state, “Private Fiduciaries are governed by state statute. Each California county has Probate Court as part of its Superior Court system. Courts may appoint a PFAC member as a neutral third party to protect vulnerable and incapacitated people from abuse, neglect and exploitation. PFAC members must abide by the PFAC Code of Ethics.”
Why should I choose a professional?
Professional fiduciaries are stringently regulated and held to standards by the court to make sure that your finances are protected. Fiduciaries are required to maintain an insurance policy to prevent losses from negligence. As licensed fiduciaries, we have the knowledge to work cooperatively with accountants, attorneys, and other professionals for your behalf. Unlike with a bank trust, if you work with a fiduciary you will receive a personalized interaction, assuring that your interests will be represented. You can also avoid family conflict that may arise in choosing family members to act as fiduciary.
When should I consider a fiduciary?
Many seniors with families choose to appoint a Professional Fiduciary to avoid burdening family members. Also, children or adults with special needs would benefit from having a professional manage their person and estate. Most people are able to manage their own affairs; they are productive, are able to pay their bills, and they have a social support system that provides them with fulfillment. Others are not so fortunate. For various reasons they are unable to care for themselves and may need assistance in meeting their responsibilities. At this time, it may be necessary to explore the available options in elder services.
When to consider a fiduciary:
When adult children live far away and want someone to make sure their parents are managing to care for themselves and their finances properly.
When a family’s estate is large and complex and requires someone with professional experience that an inexperienced family member may not be able to handle.
When you do not want to leave the responsibility and inherent conflicts of the management of your estate to a loved one.
When an independent trustee is required or desired for estate planning vehicles such as an Irrevocable Trust, Private Foundation, or a Charitable Trust.
When a disabled person requiring public benefits is the beneficiary of a special needs trust.