What is a Professional Fiduciary?

Posted on

Sep 26, 2013

Book/Edition

Colorado - Boulder County

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A Professional Fiduciary is an experienced professional who performs decision-making tasks for another. This may include serving as Guardian or Conservator as well as trustee, agent or as a contract services provider for case management and financial services. Colorado does not license or register Professional Fiduciary's but most fiduciaries belong to a national organization that has a code of ethics and conduct; for example the National Geriatric Association of Care Managers (NAPGCM) or the American Association of Daily Money Managers (AADMM). In addition professional fiduciaries may be bonded, or have liability insurance.

You can designate a professional to serve as your financial agent or medical agent or in other estate planning roles. This can come in handy when you don't have family close by or family members are unable to serve or are simply not a good choice. A professional is interested in carrying out your wishes and directions and has no interest in benefiting from your estate plan, as a family member might be, which can cause a conflict of interest for that family member. The professional is focused on you in the most efficient and supportive manner. When our body's age, our mental abilities decline as well. Sometimes this decline is mild and sometimes severe. You do not have to wait until decline occurs to take advantage of the services of your agent. Perhaps you are going on an extended trip to visit family in another state and you don't want to worry about paying your bills or the security of your home while you are gone. Or perhaps you are going into the hospital for a procedure and want to have an experienced professional on hand to advocate for you, your medical agent can temporarily assist you with this support. Your agent can assist you before or as you decline to the degree you request of them. It is a collaborative relationship. A professional fiduciary will keep accurate records, save all receipts and make transactions or decisions for your benefit that are consistent with your wishes and in your best interest. If incapacity occurs the agent can step in completely, but in the mean time you can use the services they provide to make life easier, and more enjoyable, as well as to provide peace of mind, which after all is the whole point of retirement.

This article was submitted by Sally Hirsh, Professional Fiduciary Alternatives Financial Services, LLC. Sally can be reached at 303-776-0585 or by email at shirsh9807@gmail.com.

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