How to Choose a Fiduciary
What Is A Fiduciary?
A Fiduciary is a person who has a legal obligation to act for the benefit of another with good faith and prudence.
Who Are Fiduciaries?
Executors, Trustees, guardians, conservators and committees are fiduciaries.
Who Can Be A Fiduciary?
Anyone can be a fiduciary - a family member, a friend, a professional person (lawyer, accountant, financial planner, etc.) or a
financial institution (bank, trust company, stock brokerage company, etc.).
There may be certain tax and other disadvantages in some people serving as a fiduciary in specific circumstances.
What Do I Look For In A Fiduciary?
- Honesty and integrity.
- Familiarity with the task the fiduciary is being asked to undertake.
- Investment experience or the ability and willingness to secure and use professional investment advice.
- Legal experience or the ability and willingness to secure and use professional legal advice.
- Ability and willingness to keep good financial records and prepare and file all necessary accountings and tax returns or secure and use professional assistance.
- Cost
Disclaimer:
The information provided by us at this site is not legal advice. If you
need legal advice, you should consult a lawyer in person. We are licensed in
Virginia and Washington, DC, and we practice exclusively in these jurisdictions.
