Myths About Being a Professional Fiduciary (and What’s True)

The professional fiduciary field is experiencing rapid growth—and with that growth comes a fair amount of confusion. Many people first learn about fiduciaries when a family member becomes incapacitated, when a trusted person needs help managing finances, or during a complex estate settlement. Others come to the profession as a second career, drawn by the opportunity to provide structure, stability, and direction for clients who truly need it.

But because the field is still emerging and varies widely from state to state, myths circulate. These misconceptions can discourage potential fiduciaries, confuse families seeking support, and undermine public understanding of the profession.

At The Fiduciary Institute, we are committed to strengthening the profession through training, standards, and shared language. So let’s clear up some of the biggest misunderstandings about what fiduciaries do—and what they don’t do.

Myth #1: “A Professional Fiduciary Is Basically a Social Worker.”

The Truth: While professional fiduciaries often work with social workers, their role is distinct.

Fiduciaries are appointed to make legal, financial, and sometimes health-related decisions when clients cannot act for themselves—or when no appropriate person is available.

Social workers focus on care coordination, psychosocial needs, and support services.

Fiduciaries may work closely with social workers, but fiduciaries hold legal authority and responsibility—often through court appointment, power of attorney, or trust administration.

Where social workers assess and recommend, fiduciaries implement and are accountable for outcomes.

In short: Social workers support care, while fiduciaries hold legal authority to make decisions.

Myth #2: “Being a Fiduciary Means Providing Caregiving.”

The Truth: Fiduciaries manage care—they do not provide it.

A fiduciary may arrange home care services, review care plans, hire caregivers, relocate a client to a safer environment, or intervene when care is inadequate. But fiduciaries are not hands-on caregivers. They do not cook meals, transport clients, provide medical treatment, or handle personal care tasks.

In fact, attempting to “do it all” can compromise professional boundaries and increase liability.

The fiduciary’s job is to ensure the right care happens at the right time—delivered by trained professionals.

Myth #3: “Fiduciaries Only Work With Older Adults.”

The Truth: Many clients are older adults, but fiduciaries work with people of all ages.

Clients may include:

• Adults with disabilities who need ongoing decision support

• Young adults receiving structured trust distributions

• Individuals recovering from accidents or health crises

• People with mental health conditions affecting decision-making

• Beneficiaries of complex or contentious estates

What these clients share is not age—it’s a need for trustworthy, structured support where independence is limited or contested.

Myth #4: “You Need a Financial or Legal Background to Be a Fiduciary.”

The Truth: While experience in finance, law, healthcare, or social work can be helpful, it is not required.

The most effective fiduciaries bring strengths in:

• Decision-making and judgment

• Communication with families and providers

• Managing conflict

• Organization and documentation

• Maintaining professional boundaries

Many fiduciaries enter the field after careers in operations, education, business ownership, nonprofit administration, project management, or caregiving oversight.

Skills can be learned. What matters most is integrity, clarity, and follow-through.

Professional training, mentorship, and continuing education fill in the technical knowledge.

Myth #5: “Fiduciaries Just Manage Money.”

The Truth: Financial management is only one part of the work.

Depending on the appointment, fiduciaries may:

• Manage client finances and budgets

• Pay bills and handle tax filings

• Coordinate and monitor healthcare and long-term care

• Oversee real estate maintenance or liquidation

• Navigate court reporting requirements

• Manage family relationships and communicate decisions

• Protect vulnerable clients from exploitation

• Close or settle estates

This is a whole-person role, balancing legal, financial, practical, and ethical considerations.

Myth #6: “Fiduciary Work Is Primarily Administrative.”

The Truth: The work is administrative and deeply human.

While fiduciaries handle records, reporting, and documentation, they are also present during some of the most significant and personal moments in their clients’ lives. They may step in when someone loses the ability to make decisions, when families are in conflict, or when a client is nearing the end of life.

Fiduciaries hold both authority and empathy—but the goal is always to respect dignity, autonomy, and personal preference wherever possible.

Myth #7: “Fiduciaries Replace Families.”

The Truth: Fiduciaries support families—and sometimes protect clients from family conflict.

In many cases, the fiduciary is the neutral third party who makes decisions when families cannot agree or when no one in the family is able or willing to take on the role.

Families may still stay involved, visit, and provide emotional support. The fiduciary ensures decisions are made consistently, ethically, and in compliance with the law.

Myth #8: “Fiduciary Work Is Either Simple or Impossible—No Middle Ground.”

The Truth: The work ranges from straightforward to deeply complex.

Some cases require only periodic financial oversight. Others involve medical decision-making, property liquidation, court hearings, and family mediation. Most cases are somewhere in the middle.

This is why systems, training, and ongoing mentorship matter. Fiduciaries who build clear processes and professional support networks are able to manage complexity effectively and sustainably.

Myth #9: “There’s No Real Career Path for Fiduciaries.”

The Truth: The field is evolving rapidly, and professional pathways are strengthening.

Growth in fiduciary services is driven by:

• Longer life expectancy

• Increased prevalence of cognitive decline

• More complex family structures

• Larger intergenerational wealth transfers

• Greater awareness of financial exploitation

• Court systems increasingly turning to professional fiduciaries

Professional associations, training programs, and mentorship communities are expanding—and opportunities for specialization are emerging.

Fiduciaries may focus on:

• Conservatorships / guardianships

• Trust administration

• Estate management

• Agent under Power of Attorney services

• Special needs trusts

• Business or real estate oversight

There is room to build a sustainable, meaningful, and respected career.

Myth #10: “You Have to Do This Work Alone.”

The Truth: While fiduciaries often work independently, they should never work in isolation.

A strong fiduciary practice is supported by:

• Peer consultation

• Legal and tax professionals

• Care managers and clinical teams

• Estate planners and trust officers

• Structured systems and processes

• Continuing education and professional supervision

The fiduciary profession is strongest when practitioners collaborate, seek guidance, and create support networks that sustain insight and ethical clarity.

The Real Work of a Professional Fiduciary

At its core, the fiduciary profession is about three things:

1. Supporting decision-making when clients cannot act alone.

2. Protecting the integrity and independence of vulnerable individuals.

3. Providing stability, clarity, and good judgment in complex moments.

It is a profession built on trust—earned through consistency, competence, and compassion.

Moving the Profession Forward

The work of building this profession is ongoing. As fiduciaries, educators, and practitioners, we can strengthen our field by:

• Using shared language

• Establishing clear standards of practice

• Providing training and mentorship

• Creating sustainable business models

• Valuing both human and technical expertise

The Fiduciary Institute is committed to supporting that growth—through education, resources, and a community of practice.

If you are exploring the profession, considering training, or seeking support to develop your fiduciary practice, we invite you to connect with us.

Learn more at: https://www.thefiduciaryinstitute.com