Lack of a trusted person and pronounced sibling rivalry are some of the reasons a person may require a Professional Fiduciary to oversee his or her trust. The person may also need a Professional Fiduciary who understands the laws governing eligibility for government disability benefits. Especially if a Special Needs Trust is needed to cover the disabled child’s expenses upon the person’s death. Finding a reliable Professional Fiduciary who can efficiently manage a trust is key, and due diligence is required before appointing one.
What is a Professional Fiduciary?
A Professional Fiduciary is a person or entity entrusted with the management of property or funds on another person’s behalf. The Professional Fiduciary can act as an estate Executor, a Conservator of an estate and/or person, trustee, or an agent with finance and healthcare Power of Attorney.
Key Reasons for Appointing a Professional Fiduciary
Unavailability of a Trusted Person
Parents who are single or childless often have challenges in naming a fiduciary to manage their property or money. Parents might also have reservations about naming one of their children as some could be untrustworthy or reside in far distant places. These factors may force a parent to hire a Professional Fiduciary.
Pronounced Sibling Rivalry
Sibling rivalries can escalate after the death of a parent(s). If a parent believes that naming one of his or her children as a Successor Trustee might exacerbate the rivalry, he or she may opt for a Professional Fiduciary to take over the management of the trust to avoid a family feud.
Management of a Special Needs Trust for a Disabled Child
Parents who establish a Special Needs Trust (SNT) for their disabled child might opt for a competent Professional Fiduciary rather than naming a family member as a trustee. Professional Fiduciaries understand the expenses a Special Needs Trust can cover without jeopardizing the beneficiary’s eligibility for government disability benefits.
Appointing a Professional Fiduciary
A person should interview several licensed Fiduciaries and ask them relevant questions prior to making any appointments. He or she should ask about the Fiduciary’s level of experience, fees, availability to customers, security protocols, and operational policies. The person should then analyze this information and settle for a Fiduciary that suits his or her unique needs.
A trust attorney can provide referrals and guide a person throughout the process of appointing a Professional Fiduciary. Attorneys can also offer relevant legal advice to anyone named as a Professional Fiduciary.
