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Claridge Fiduciary Services, LLC
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What Is a Fiduciary?

Many of us will eventually face a time when someone we love needs help managing their affairs, or when we’re asked to administer a family member’s estate. In these moments, the word fiduciary may come up. While the term may sound intimidating, it’s straightforward.

A fiduciary is someone trusted to act legally and ethically in another person’s interests. That work often plays out against a backdrop of grief, illness, incapacity, or conflict.

A fiduciary’s specific tasks depend on the governing documents, such as trusts, wills, powers of attorney, or court appointments, along with applicable laws. A fiduciary acts within the authority those documents grant, always in the interest of the person they serve rather than their own.

Core Fiduciary Duties

Fiduciary roles share the fundamental responsibility of protecting and managing another person's interests with care and integrity. That responsibility rests on four core duties.

Loyalty

Act in the best interests of the person or beneficiaries they serve, never their own.

Prudence

Manage assets and make decisions with care, skill, and caution.

Impartiality

Treat all beneficiaries fairly, especially when their interests differ.

Confidentiality

Fiduciaries must also understand the scope of their authority and responsibilities, which is unique to each appointment.

Fiduciaries must also understand the scope of their authority and responsibilities, which is unique to each appointment.

Types of Fiduciary Roles

Fiduciaries can work in several different capacities depending on each appointment's requirements. Common examples of fiduciary roles include:

  • Trustee
Manage and administer assets held in a trust according to the established terms of the trust.
  • Executor/Personal Representative
Administer a person’s estate following their death.
  • Conservator
Manage financial affairs or property for someone who can no longer independently manage those matters.
  • Guardian
Make decisions about the daily life and care of someone who can no longer safely take care of themselves.
  • Agent
Handle financial or other matters on behalf of another person under power of attorney authorization.

The Role of a Trustee

A trustee manages and administers assets held in trust. Trusts are legal arrangements designed to hold and manage assets for a person or persons both during life and after death. The trustee may be responsible for protecting assets, managing investments or property, paying expenses, keeping records, and making distributions to beneficiaries.

Trust administration can last for months or years depending on the trust’s terms and the circumstances. Trustees may also be required to coordinate affairs on behalf of the trust with attorneys, accountants, financial advisors, and beneficiaries throughout the duration of the trust.

The Role of an Executor or Personal Representative

In Oregon and Washington, the person who administers an estate after a death is called a personal representative. Many other states use the term executor. Both describe the same role.

A personal representative administers a person’s estate after their death. This can involve identifying and securing assets, addressing debts or expenses, or managing property. A personal representative may also need to work through the probate process and distribute assets according to the person’s estate plan and other applicable legal requirements.

Estate administration often requires coordination and attention to detail as an estate can include multiple assets, real estate, or business interests in addition to any personal interests.

The Role of a Conservator

A conservator manages the financial affairs or property of a person who is unable to manage those matters independently. Depending on the authority granted, a conservator may manage assets, pay bills, oversee property, or make financial decisions on behalf of the person they represent.

Conservatorships carry significant responsibility. With the individual unable to make decisions on their own, the conservator is tasked with managing resources while balancing the needs and interests of the individual.

The Role of a Guardian

When someone can’t safely take care of themselves anymore, a court may step in and appoint a guardian. The guardian makes decisions about the person’s life, like where they’ll live, which doctors they see, and what kind of daily care they need.

A guardian doesn’t usually handle finances. For that, the court appoints a conservator to manage the person’s income, bills, and assets. One person can hold both roles, but they’re two distinct jobs.

The Role of an Agent

An agent who acts under power of attorney may manage financial or other responsibilities on behalf of a principal. The agent’s authority is set by the terms of the power of attorney document. An agent may manage financial accounts, handle property, or carry out additional authorized transactions.

What Does a Professional Fiduciary Do?

A professional fiduciary is someone paid to serve in these roles. They manage the personal or financial affairs of people who can't manage them on their own, or administer a trust or estate after a death, often when there's no family member able or willing to step in. They carry all the core fiduciary duties. What sets them apart is the scope of the day-to-day work and the professional standards they're held to.

This is often the biggest piece. A professional fiduciary pays bills, collects income like Social Security and pensions, manages bank and investment accounts, files taxes, and makes sure public benefits stay in place. They also look for fraud or financial exploitation, which is common with vulnerable adults.
A trustee is a person or entity that manages a trust for the benefit of the beneficiaries, as outlined in the trust document. A trustee is a fiduciary
That can mean securing a house, arranging repairs, keeping insurance current, cataloging and appraising personal belongings, and eventually selling real estate or distributing items to heirs.
As a trustee or personal representative, the fiduciary gathers assets, pays debts, and distributes a person’s assets according to their will or trust document. They also work through disagreements among beneficiaries.
Most cases involve attorneys, CPAs, financial advisors, care managers, realtors, and appraisers. It is the fiduciary’s duty to make sure the support team carries out every objective correctly and on time.
Guardians and conservators must file regular reports and accountings with the court. Detailed records should back up every decision a fiduciary makes, along with a clear explanation of why each decision was made.
Professional fiduciaries are held to a higher standard. In California, they are licensed by the Professional Fiduciaries Bureau. In Oregon and Washington, professional guardians and conservators must meet certification requirements and follow National Guardianship Association standards. Continuing education supports their skills, and insurance and bonds provide added protection in certain instances.

Family Member or Professional Fiduciary?

In many cases, a family member is named or appointed to act as a fiduciary. A family member may better understand or have close knowledge of their loved one’s wishes, family dynamics, and relationship history.

An individual is not required to have a financial or legal background to serve as a fiduciary. Still, serving involves more than helping a loved one with finances or other affairs. The person accepting the responsibility must understand and fulfill the duties associated with the appointment.

A professional fiduciary brings an independent perspective and career experience to the role.

A professional fiduciary brings an independent perspective and career experience to the role. Choosing between these two options can depend on a few factors.
  • Knowledge: A family member may be more familiar with their loved one's affairs, which can provide key insights that help with making decisions. A professional fiduciary brings an understanding of how to manage a trust, estate, or conservatorship efficiently.
  • Objectivity: A family member may be more emotionally conflicted or directly impacted by the estate plan or financial decisions. A professional fiduciary can manage affairs from an independent position.
  • Complexity: A family member may not know how to handle specific or difficult financial issues, coordination with other professionals, or complicated assets, which can draw out the process. A professional fiduciary has experience reviewing and administering estate planning documents, which can help expedite matters.

When Should You Consider a Professional Fiduciary?

Engaging a professional fiduciary can provide an objective means of navigating complex responsibilities independently and with continuity. This may be especially helpful when those responsibilities lead to differing opinions or are emotionally difficult for family members to manage without assistance. Here are some typical situations where a professional fiduciary may be helpful.

When Family Members Need an Independent Third Party or Mediator

Family relationships can be complicated and charged with emotion, often more so when significant financial decisions are required. A fiduciary can provide an objective perspective and keep decision making focused on actionable tasks rather than family dynamics. This can be valuable when beneficiaries have different interests or where relationships are already tense.

When Responsibilities Are Complex or Time Consuming

Trust or estate administration can involve a variety of accounts, assets, documents, and deadlines. An individual or family members may become overwhelmed by the significant commitment required to serve as a fiduciary. A professional fiduciary can help alleviate this strain while bringing the administrative expertise to coordinate details more efficiently.

When Continuity Matters

Some fiduciary relationships continue for extended periods of time. A professional fiduciary can provide ongoing administration with continuity rather than placing responsibilities on various family members who may eventually be unable or unwilling to continue in the role.

When a Family Member Cannot Take Responsibility

In some instances, family members may be reluctant or unable to serve in a fiduciary role. Time, distance, professional obligations, family responsibilities, or emotional circumstances can all make this a difficult situation. A professional fiduciary can provide support while allowing family members to remain involved where appropriate.

Families and attorneys often choose a professional because of experience with complex or contentious cases, and because a neutral outsider can make hard calls without the emotional weight a relative carries.

How Do You Choose the Right Fiduciary?

When selecting the best professional fiduciary for a particular case, consider the four Cs.

  • Circumstance: Trust administration, estate settlement, conservatorships, and powers of attorney all involve different steps and responsibilities. Choose a fiduciary with relevant experience for the circumstances involved.
  • Communication: Managing an estate or trust often involves multiple professionals who need to be kept informed throughout the process. Choose a fiduciary who provides timely, clear communication to reduce misunderstandings or delays.
  • Conflict: Competing interests can impact whether an estate is administered objectively and fairly. Choose a fiduciary or firm that does not have a conflict of interest in the case.
  • Continuity: Fiduciary responsibilities can last for years, decades, or even generations in the case of ongoing trust management and other complex cases. Choose a fiduciary with an established firm and experience in long-term stewardship.

Professional Fiduciary Services for Families and Individuals

Fiduciary services are typically sought out during periods of significant change such as the loss of a loved one or planning for incapacity. The practical responsibilities involved can feel overwhelming in addition to an already emotionally charged situation for family members and beneficiaries.

A professional fiduciary can provide impartiality while ensuring that key responsibilities are handled carefully and thoughtfully.
Claridge Fiduciary Services, LLC provides professional fiduciary services to families and individuals in Oregon, Washington, and California. We specialize in helping clients navigate the complex financial and management responsibilities of trust administration, estate settlement, conservatorships, and acting as power of attorney.

Here’s how to connect: 503.899.2672 or darrell@claridgefs.com

Frequently Asked Questions about the Role of a Fiduciary

Understanding the role of a fiduciary can help families make informed decisions when managing a loved one's affairs or settling an estate. The following questions address some common considerations about professional fiduciaries, what happens when someone cannot serve, and how a professional fiduciary may help when circumstances become more complex.

What is the difference between a fiduciary and a professional fiduciary?
A fiduciary is someone who is formally responsible for acting in another person’s best interests. A professional fiduciary performs this role as a profession rather than as a family member or other individual with a personal connection to the person or estate.

Yes. Both terms describe the person who administers an estate after a death. Oregon and Washington use the term personal representative, while many other states use executor.

If someone named or appointed to serve as a fiduciary cannot or does not want to take on the responsibility, the next steps depend on the type of fiduciary relationship and the governing documents or court appointment. Another person may need to be appointed or selected to serve. When a family member is unable or unwilling to continue, a professional fiduciary may provide an independent option for managing the responsibilities.

An executor or Personal Representative is a person or institution named in a will to carry out the wishes of the deceased and settle their estate. An executor can also be appointed by the Probate Court as the administrator of a decedent’s estate.

The role of executor can be time-intensive and carries a great deal of responsibility. Executors are personally liable for their actions and can face financial or legal consequences if they perform their duties incorrectly

A professional fiduciary can provide an independent perspective when family members have different opinions about financial or estate matters. A professional fiduciary is responsible for carrying out their duties according to the governing documents, applicable requirements, and the interests they are legally obligated to protect. This impartial approach can help keep administration focused on the responsibilities of the role rather than family dynamics.

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