When most people think about who will manage their estate or step in if they can’t make decisions, the answer feels obvious: a spouse, an adult child, or a trusted relative. But sometimes family isn’t the best option. That’s where professional fiduciaries come in.
Clear planning around who will take on these roles helps avoid conflict, ensures continuity, and gives you peace of mind knowing your affairs will be handled properly.
What Is a Fiduciary?
A fiduciary is someone with the legal responsibility to act in another person’s best interests. In elder law, this role may include serving as a:
- Trustee
- Executor
- Guardian
- Agent under a power of attorney
A professional fiduciary is a neutral third party—often an attorney, accountant, trust company, or licensed professional—who assumes this role for a fee.
Why Families Choose Professional Fiduciaries
There are several benefits to naming a professional fiduciary:
- Neutrality: They can reduce family conflict by making decisions without favoritism.
- Expertise: Professionals are familiar with complex rules around retirement accounts, trusts, Medicaid, and tax reporting.
- Consistency: They provide long-term stability, even if family members move away or pass on.
- Accountability: Fiduciaries are held to high standards and can be legally liable if they misuse funds.
Things to Consider
Professional fiduciaries aren’t right for everyone. Some potential drawbacks include:
- Cost: They charge fees, often hourly or as a percentage of assets.
- Less personal connection: Unlike a family member, they may not know your values, quirks, or family history.
- Availability: In some communities, licensed or qualified professionals may be limited.
When Might You Need One?
Families consider professional fiduciaries for many reasons, such as:
- Not having close family or friends to trust with financial or medical decisions.
- Anticipating high family conflict, like siblings who disagree.
- Wanting to relieve children or loved ones of the burden of administering an estate.
- Managing a particularly complex estate that involves businesses, rental properties, or ongoing trusts.
How to Find a Professional Fiduciary
- Ask for referrals from your estate planning attorney, CPA, or financial advisor.
- Search state professional fiduciary associations or licensing boards.
- Explore services from trust companies and banks that specialize in ongoing trust administration.
The Real Goal: Protecting Your Wishes
Appointing a professional fiduciary isn’t the right fit for every family—but for those without clear decision-makers, or those who want to reduce conflict, it can be a wise solution. A neutral, skilled fiduciary ensures your wishes are carried out with care, professionalism, and impartiality.
Plan ahead and choose the right path for your family’s future.
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