What Does a Fiduciary Do? A Guide for Families in Transition
Life is full of transitions—some expected, others sudden. When a loved one passes away, becomes ill, or reaches a point where daily financial or personal matters become overwhelming, families are often faced with difficult questions: Who will manage the estate? Who will make healthcare decisions if mom can’t? How do we keep up with bills, taxes, and legal responsibilities when we’re already grieving or stretched thin?
This is where a fiduciary can step in. A fiduciary is more than just a financial term—it’s a role built on trust, responsibility, and legal accountability. Fiduciaries serve individuals and families during some of life’s most complicated chapters, bringing professionalism, neutrality, and compassion to situations that are often emotionally charged.
In this guide, we’ll walk you through what a fiduciary is, the different roles they can play, and why choosing a fiduciary can provide peace of mind and protection for you and your loved ones.
What Exactly Is a Fiduciary?
At its simplest, a fiduciary is a person or organization legally bound to act in someone else’s best interests. Unlike friends or family members who may mean well but lack professional training, fiduciaries are held to the highest standard of care under the law.
That means every decision a fiduciary makes must prioritize the well-being, financial stability, and personal interests of the person they are serving. This duty of loyalty and care sets fiduciaries apart from general advisors or informal helpers.
Fiduciaries are often licensed or certified professionals with backgrounds in law, accounting, finance, or social services. Many bring years of experience in estate management, healthcare coordination, and financial oversight.
The Many Roles of a Fiduciary
One of the most common misconceptions about fiduciaries is that they only handle money. In reality, fiduciaries can serve in a wide variety of roles depending on a person’s needs. Let’s break down the most common fiduciary services:
1. Personal Representative / Executor Services
When a loved one passes away, their estate must be settled. This involves:
Filing the will with the court.
Gathering and valuing assets.
Paying debts, taxes, and final expenses.
Distributing assets to heirs.
Families often underestimate how complex this process can be, especially during a time of grief. A fiduciary acting as a personal representative (or executor) ensures the estate is handled with diligence, neutrality, and compliance with the law—relieving family members of the heavy responsibility.
2. Powers of Attorney (Healthcare & Financial)
A power of attorney allows someone else to step in and make decisions on your behalf if you cannot. There are two main types:
Healthcare Power of Attorney – Deciding on medical care, treatment options, and end-of-life wishes.
Financial Power of Attorney – Handling financial tasks such as paying bills, managing investments, or signing legal documents.
Appointing a fiduciary ensures that these sensitive decisions are made without bias, drama, or conflict among family members.
3. Case Management
For individuals dealing with complex medical, legal, or financial challenges, fiduciary case managers provide much-needed organization. They act as a central point of contact between doctors, attorneys, accountants, and caregivers—streamlining communication and ensuring nothing gets overlooked.
Case management is particularly valuable for families caring for an elderly loved one or someone with ongoing health needs.
4. Guardian or Conservator Services
When someone is unable to care for themselves or manage their finances, the court may appoint a guardian (for personal and healthcare matters) or a conservator (for financial matters). Professional fiduciaries can step into these roles, ensuring safety, dignity, and accountability.
This service is especially critical when family dynamics are strained or when a neutral third party is needed.
5. Daily Money Management
Even simple financial tasks—like paying utility bills, balancing a checkbook, or monitoring accounts—can become overwhelming for seniors or individuals facing health challenges. Fiduciaries provide daily money management to prevent missed payments, late fees, or vulnerability to financial scams.
This service provides reassurance not only to the client but also to their family members, who may live far away or be unable to provide hands-on support.
6. Financial Oversight & Recordkeeping
Transparency is one of the most important aspects of fiduciary work. Fiduciaries maintain detailed financial records, provide regular reporting, and ensure accountability in every transaction. Families can trust that every dollar is tracked and managed with accuracy.
Why Families Choose Fiduciaries
You may be wondering: Why hire a fiduciary instead of just relying on family?
The answer is often neutrality, expertise, and peace of mind.
Neutrality: Fiduciaries don’t take sides in family disputes. They make decisions based on law, ethics, and the client’s best interests.
Expertise: With training in law, finance, and case management, fiduciaries navigate complicated systems more efficiently than someone without experience.
Protection: Fiduciaries act as a safeguard against mistakes, mismanagement, or even exploitation.
Relief for Families: Instead of juggling financial paperwork, court deadlines, or medical coordination, families can focus on supporting their loved one emotionally.
A Real-Life Example
Consider a family whose mother has recently been diagnosed with dementia. The children live in different states, each with their own families and careers. Decisions about medical care, housing, and finances need to be made quickly—and disagreements begin to surface.
By appointing a professional fiduciary, the family gains a neutral third party who:
Oversees their mother’s healthcare needs.
Manages her finances responsibly.
Provides clear communication to all siblings, reducing conflict.
Instead of constant stress, the children are able to focus on spending meaningful time with their mother—knowing her needs are being handled with compassion and professionalism.
FAQs About Fiduciary Services
Do fiduciaries replace family decision-makers?
Not necessarily. Many families choose to partner with fiduciaries as co-agents or co-representatives, ensuring both professional oversight and family involvement.
Are fiduciaries regulated?
Yes. Professional fiduciaries are licensed in many states, and all are legally bound by fiduciary duty—the highest legal standard of care.
When should I hire a fiduciary?
It’s never too early to plan. Families often benefit from hiring a fiduciary before a crisis occurs, ensuring smooth transitions when the unexpected happens.
Final Thoughts
Hiring a fiduciary can feel like handing over deeply personal matters to a stranger—but the truth is, fiduciaries exist to protect individuals and families during times of transition. Whether you’re navigating an estate, appointing a power of attorney, or simply need help managing day-to-day finances, a fiduciary ensures your wishes are honored and your best interests are always at the forefront.
📞 Ready to explore fiduciary services for your family?
At RZL Fiduciary, our team includes experienced attorneys, a skilled accountant, and a compassionate fiduciary services coordinator. Together, we provide the legal knowledge and practical support families need during life’s most important transitions.
👉 Call us today at (520) 999-3738 to schedule a consultation.
