The Professional Fiduciary Profession
An overview of professional fiduciary practice: the roles, the responsibilities, the populations served, and the current state of the profession.
What Professional Fiduciaries Do
A professional fiduciary is an individual who is legally authorized to act on behalf of another person when decision-making, oversight, or management of personal, financial, or legal matters requires formal authority and accountability. Professional fiduciaries serve individuals who are unable to manage their own affairs due to cognitive decline, disability, incapacity, age, or complexity of circumstances.
Professional fiduciaries are distinct from financial fiduciaries. While financial fiduciaries (such as investment advisors) manage investment portfolios, professional fiduciaries manage the whole person's situation. This may include making healthcare decisions, managing finances, overseeing living arrangements, coordinating with care teams, administering trusts or estates, and protecting the person's rights and preferences, often simultaneously and across multiple areas of responsibility.
Professional fiduciaries are appointed by courts, designated in legal documents such as trusts and powers of attorney, or engaged directly by individuals and families. They operate under state law, court orders, ethical standards, and the terms of their governing documents. They are accountable to courts, regulatory agencies, beneficiaries, and the individuals they serve.
A core principle governing fiduciary practice, particularly in guardianship and conservatorship, is the least restrictive alternative, intervening only to the extent necessary and preserving the individual's independence and autonomy wherever possible.