A fiduciary is any person given responsibility for the financial and or care decisions of someone experiencing a decline in capacity, or a minor. A person responsible for closing out the affairs of the deceased is also a fiduciary. Given their significant duties, fiduciaries often find it very useful to secure the guidance of an experienced fiduciary attorney.
Fiduciary Roles Explained
Consumer Finance offers this basic definition of fiduciary: “A fiduciary is someone who manages money or property for someone else. When you’re named a fiduciary and accept the role, you must – by law – manage the person’s money and property for their benefit, not yours.” It can, for example, become necessary to designate a fiduciary, such as a guardian, conservator or power of attorney, as part of a care plan for a minor, an elder or other loved one experiencing a capacity decline. Additionally, as estate plans are created, fiduciaries, such as executors or trustees, are typically named to carry out the asset arrangements expressed in wills and trusts.
Whenever it comes time to appoint a fiduciary, it is common practice to designate relatives and close friends. Because these loved ones do not always have the experience and time to fulfill their significant responsibilities, guidance from fiduciary attorneys can be essential in helping fiduciaries “perform their duties in a way that is legally and morally appropriate”:
Being named a fiduciary is a considerable responsibility. You have the responsibility of making decisions that are in the best interest of someone else and you can be held liable if you do not properly follow through as you’ve been instructed.
The law firm of Davidow, Davidow, Siegel & Stern offers specific examples of how fiduciary attorneys can assist fiduciaries with their duties in a variety of circumstances, whether appointed as executor or trustee in an estate plan, being named guardian or given power of attorney. The firm also explains that it is even possible to appoint an attorney as a professional fiduciary, freeing family members from some of the strain and stress inherent with the duties: “When someone is designated as the decision maker they quickly realize that it is an awesome responsibility. They may not have any experience, or don’t want to deal with adversity from other family members. An alternate solution is to entrust our firm to serve as your Executor, Trustee or Power of Attorney. We are knowledgeable, objective and professional and can make decisions in a compassionate manner which results in family harmony.”
Fiduciary Bonds Explained
Given the gravitas of the responsibilities involved in serving as a fiduciary, a bond, referred to as a fiduciary bond, is often required. A fiduciary bond serves as a guaranty that duties will be carried out in accordance with the law and in the best interests of the beneficiaries. Sometimes fiduciary bonds are specifically referred to based on the particular role the fiduciary is filling. For example, executor bonds, personal representative bonds, administrator bonds, trustee bonds, guardian bonds, and conservator bonds are all specific types of fiduciary bonds.
Whenever any type of fiduciary bond is needed, Colonial Surety Company, a leading national and direct provider, makes it easy and speedy to obtain them. To get a fiduciary bond, simply: obtain a quote online, fill out the information, and enter a payment method. Download and e-file a digital fiduciary bond in minutes, from anywhere:
Choose and Obtain Fiduciary Bonds Here
Fiduciary Attorney?
When families put their trust in you, there’s no time to waste. With a few clicks on The Partnership Account® for Attorneys, lawyers everywhere around the country can quickly obtain needed fiduciary bonds for themselves or their clients. Just select the specific bond, enter payment (or send to client for completion) and then download, e-file or print the bond. Our fiduciary bonds include: administrator, estate, executor, guardian, personal representative, probate, surrogate, trustee, conservator and the list goes on.
Easy, speedy fiduciary bonds are always at your fingertips, from your own private dashboard, via our complimentary service for fiduciary attorneys:
The Partnership Account® for Attorneys
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.