Fiduciaries – What they are and what they do

A fiduciary is a person to whom you trust your money and/or property with the obligation that he or she acts for your benefit. This may be someone you know, such as a relative or friend or it may be a professional fiduciary such as a financial advisor. Choosing a fiduciary allows you to place the power of administration into the hands of one person, preventing further conflict between others close to you over who controls your money.

It may be wise to choose a professional fiduciary over someone you know personally. Professional fiduciaries have the experience of working with previous clients and they are generally a safer choice when it comes to insuring your money to prevent any loss due to negligence.

If you choose a relative or friend as a fiduciary, be sure that he or she will stay true to the obligations of working toward your benefit and not let his or her own interests breach the fiduciary duty.