The services of a professional fiduciary can be a huge relief for individuals aging solo, as well as for those with special needs. Professional fiduciaries are also frequently relied upon to administer estate plans, or safeguard the assets designated for minor children. Legally bound by duties like loyalty and prudence, professional fiduciaries are obligated to demonstrate a high standard of care in carrying out their responsibilities.
High Standards of Care and Conduct
Though often lawyers, professional fiduciaries can also be accountants or other financial professionals or even a bank or trust company. Essentially, a professional fiduciary is bound by the requirements of fiduciary duty to “prioritize the interests of the beneficiary over their own,” as they carry out their responsibilities. Beneficiaries may be
entitled to damages, should a fiduciary breach be made in executing duties such as:
Duty of loyalty. Fiduciaries must work in the interests of their beneficiaries and not for their own gain. They should approach all professional responsibilities free of conflicts of interest, and they must fully disclose any potential conflicts that arise.
Duty of care. Before making any decisions for beneficiaries, fiduciaries must review all material information that’s available to them. Pursuing due diligence is another way to refer to the duty of care.
Duty of good faith. When taking action, fiduciaries must fulfill their duties without violating the law.
Duty of confidentiality. Fiduciaries must keep their clients’ information private and not disclose it for their own benefit or personal gain.
Duty of prudence. All decisions must be made with the highest degree of care, skill and caution.
Duty to disclose. Fiduciaries must disclose all information that could impact their beneficiary or their own ability to uphold their fiduciary duties.
Understanding Fiduciary Bonds
Given the significant responsibilities involved in serving as a fiduciary, a type of bond, often referred to as a fiduciary bond is often required. Depending on the specific responsibilities to be undertaken by a professional fiduciary, the bond may alternatively be referred to as a conservator, guardian, trustee, personal representative, executor or estate bond. Essentially, every type of fiduciary bond serves as a guarantee that duties will be carried out in accordance with the law and in the best interests of beneficiaries. Colonial Surety makes it easy and speedy for fiduciaries in every state of the country to obtain their bonds: simply: get a quote online, fill out the information, and enter a payment method. Print or e-file the bond from anywhere.
Obtain Digital Fiduciary Bonds HERE
Bonding Solutions for Professional Fiduciaries
When families put their trust in you, there’s no time to waste, so Colonial Surety offers
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Yes Please: The Partnership Account® for Professional Fiduciaries.
Colonial Surety is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed, and licensed for business everywhere in the USA. Our customers have awarded us a 4.8 Trustpilot score.Whenever and wherever you need a bond, trust Colonial: www.colonialsurety.com