What is a Fiduciary? - Who needs a Fiduciary?
Why use a Licensed Fiduciary? - How do you choose a Fiduciary?
On this page we attempt to provide some basic information about the fiduciary profession. If your questions are not answered, please feel free to call us. We will be happy to answer questions and where we do not have an answer, refer you to someone who does. Consultations are free with no obligation and all information is held in strictest confidence.
What is a Fiduciary?
A fiduciary is someone who accepts responsibility for taking care of the personal or financial needs of another person. The fiduciary may be a person or an institution, like a bank. Fiduciary duties depend on whether services are provided for a deceased person or someone still living.
You might be more familiar with the common terms used for fiduciary, such as Trustee, Executor, Estate Administrator, Personal Representative, Power of Attorney, Conservator, or Guardian.
When a fiduciary accepts responsibility for taking care of the personal needs or the finances and property of a person who cannot take care of these issues themselves, the law requires the fiduciary to act honestly, ethically and always with the best interest of his client in mind.
Fiduciaries do not have to be professionals. They may be relatives, professionals in private practice, government agencies, or institutions such as banks. A fiduciary named in a will or trust does not have to be licensed. It may be a family member, close friend, or a professional fiduciary. However, to be eligible for court appointment in Arizona, the state requires professional fiduciaries to be licensed through the Certification and Licensing Division of the Arizona Supreme Court.
Who needs a Fiduciary?
When there is a need for managing the personal or financial affairs of individuals who cannot do so themselves, somebody else must step in to assure finances, health care, or general well-being are taken care of and the person is protected from abuse or exploitation. Typical situations requiring a fiduciary for a person still living are:
- Conservatorship, which is the management of financial affairs of vulnerable individuals. For a conservator to be appointed, the court first has to find a person to be incompetent or vulnerable to exploitation. This could be because of age-related diseases like dementia, serious illness, substance abuse, or being a minor. In such cases the probate court will appoint a fiduciary to manage the person's finances and property.
- Guardianship is the management of the daily life and health care of individuals who are found to be incompetent to handle those affairs themselves. A process similar to the one to appoint a conservator is required before a guardian may be appointed. The individual then becomes a "ward" or "protected person". The guardian has the right to make all decisions for the protected person, except those related to finances. The guardian may arrange for a place of residence, select caretakers, monitor personal hygiene, choose doctors, decide on medications and treatments, etc.
In the case of deceased individuals, fiduciary duties usually have to do with accounting for possessions and passing them on to the rightful heirs.
- Estate Administration for a deceased person means to take inventory of everything owned by the deceased, find the rightful heirs, paying off any debts, selling or passing on property and personal possessions, filing tax returns, etc. If there is a Last Will and Testament, it usually names a fiduciary and gives directions as to what to do with property and personal items. If there is no will, the probate court will appoint a fiduciary and any inheritances are passed on to legal heirs as determined by law (Intestacy law).
- Manage or distribute trust assets. When the deceased has a Trust, the trust document usually names a successor trustee. If no successor trustee is named, or the successor trustee is dead, or not available to assume the responsibilities of a trustee, the court will appoint a fiduciary. That fiduciary may be a someone from the deceased's family, or it may be a professional private fiduciary chosen by either the family or the court.
A rather common reason for court appointment of a licensed private fiduciary are cases where there is conflict about the administration of an estate or trust, or a family member who was chosen as fiduciary cannot meet the requirements of the court. An alternate fiduciary may be named by the parties involved or directly appointed by the court.
Why use a licensed private fiduciary?
Most people will use trusted family members or friends as fiduciaries. When neither family nor friends are available, private fiduciaries are routinely named in Wills, Trusts, Power of Attorney, Living Wills, or other life-planning documents.
The advantage of using a certified & licensed fiduciary is the assurance that the fiduciary has met the requirements set for licensing by the the Arizona Supreme Court. Certified fiduciaries in Arizona must meet certain educational requirements, have professional experience, pass a licensing test, get fingerprinted, and undergo an extensive criminal and financial background check. Once certified, fiduciaries must be bonded and meet continuing education requirements to maintain their license.
Licensed Fiduciaries are held to a high standard under the law. They are accountable to clients, the clients' families, heirs, and other beneficiaries. Court appointed fiduciaries must meet stringent reporting requirements and justify to the court all actions and decisions and account for all income and expenses made on a client's behalf. Fiduciaries violating the Arizona Code of Judicial Administration are subject to reprimand, fines, and revocation of their license.
Why choose Premier Fiduciary Services?
Kurt Tittelbach, (Arizona certification #20641), our founder and principal fiduciary, has years of experience in estate and trust administration. He is a compassionate professional who understands people who are concerned for the well-being of a vulnerable family member and he knows the difficulties and challenges families face after the death of a loved one.
When life planning documents such as wills or trusts are set up, often the question comes up "Who do I want to take care of my affairs when I am incapacitated or after my death?". Most of the time family members are chosen. The chosen person might well be qualified for the job, but more often than not, the individual is totally unprepared and overwhelmed when the moment comes when they are suddenly responsible for someone else's welfare or finances. If the person was chosen without any regard to qualifications simply because "they are nice", or "I don't know anyone else", the result could be a legal and financial disaster that decimates or wipes out an estate.
At Premier Fiduciary Services we are ready to step up when the moment comes where a skilled fiduciary needs to take over someone's financial affairs. Our company philosophy is based on solid ethics. We are not only meeting our legal obligations to our clients, but also fulfilling the moral obligations we take on with every client. Our goal is 100% client satisfaction. To achieve this, we make use of extensive communication with clients and professionals for total transparency in all transactions concerning client matters. We believe that open communications, which means letting interested parties know not only what we do - but why we do it and why certain decisions serve the client's best interest, will help avoid mistrust, second guessing, and unpleasant surprises.
As private fiduciary, we are a cost-saving alternative to the generally more expensive corporate trust companies and trust departments of large banks. But most importantly, our clients enjoy a caring personal relationship with their fiduciary. We genuinely care about our clients, making it our duty to understand their needs and desires and see they are met wherever possible.
When you engage Kurt Tittelbach you will have an experienced professional on your side who understands the legal and financial ramifications of handling "someone else's money" and who will prudently safeguard and protect your assets or those of your loved ones.
If you are looking for an experienced trustee, personal representative, or conservator, please give us a call to discuss your personal circumstances.
Consultations are free and absolutely confidential.
Call: 602-334-4084
Or tollfree: 1-866-616-7828