A person or entity acting as a fiduciary would be in a position that would make him/her responsible for overseeing the care and/or investments of someone else. A fiduciary duti should be the highest standard of care and he/she must not put his or her personal interests before this duty.
You maybe in a fiduciary position and not even realize it. If you have been elected to be the executor, trustee or power of attorney for a family member or friend’s estate, then you will be expected to act in a fiduciary manner. If you are an employer and provide a 401(k) plan for your emplyees, then you are acting as a fiduciary and would be expected tp act in the best interess of your employees.
If you are thinking of electing someone as a fiduciary, here are some things that you might consider:
Someone you trust. Frequently one spouse appoints the other spouse.
However, where there is none, the named fiduciary may be a sibling, child, friend, trusted adviser, attorney, bank, or trust company.
The ability to handle financial affairs. It may not be wise to assign that family member who still can’t figure out how to balance the checkbook.
Availability and accessibility. If you reside in California, it may not be prudent to elect someone living on the East Coast, or who travels nine months out of the year.
A wise choice of fiduciary now could save headaches, lawsuits and money later.
Theresa M. Nachman
Eward Jones Investments Redding, Ca
Published in the Record Searchlight on 9/15/2008
