Dec 22, 2022
There are four types of fiduciaries. Serving as a fiduciary comes with great responsibility and takes a lot of work. Whether choosing a fiduciary or agreeing to serve as one, it’s important to understand what the role requires. As Bellomo and Associates prepares to launch its new fiduciary workshop, Jeff introduces us to the various fiduciary types and what is expected of them.
Key Takeaways
01:29 – What is a fiduciary?
- Someone to whom property or power is entrusted for the benefit of another
- Four types of fiduciaries: financial power of attorney, health care power of attorney, executor/executrix, trustee
02:05 – Our growing lineup of workshops
- Will soon launch a new fiduciary workshop
- Current workshops: probate and trust administration, pre-planning, crisis planning, special needs
04:27 – Serving as financial power of attorney
- An advocate to tend to the finances and make sure bills are being paid
- Make important financial decisions
- Impartial, assertive, detail-oriented, organized, diligent, competent
- Living locally is helpful
06:26 – Serving as health care power of attorney
- Make sure individual’s health care needs are being met
- An advocate for important healthcare decisions
- A background in health care is helpful
- Impartial, assertive, detail-oriented, organized, diligent, competent
- Consider choosing a retired health care provider (e.g., nurse or social worker) who is knowledgeable and trustworthy
10:20 – Serving as an executor/executrix
- Executor (male) or executrix (female) of the last will and testament
- An advocate to carry out the wishes of the testator
- Responsible for bills, taxes, liabilities, and distributing the assets according to the will
- Receives authority when they receive the “letters testamentary” after the probate petition
- Gifting assets or naming children as joint owners on accounts is not recommended in many cases
15:15 – Serving as a trustee
- Different types of trusts can be created for a variety of reasons: taxes, asset protection, etc.
- The person appointed as trustee will likely vary depending on the type of trust
- Special needs trusts will usually require a professional fiduciary (e.g., Achieva or Security Trust in Pennsylvania)
- A professional fiduciary, such as a trust company or an insured professional, is recommended when the trust is meant to serve someone who is not responsible enough to manage the money or when extreme wealth is involved
- Choose a fiduciary who is good with money, impartial, assertive, organized, detail-oriented, diligent, and competent
- A person can be the trustee of their own asset protection trust, and this often calls for a second person to serve as co-trustee
Links and Resources Mentioned
Bellomo & Associates workshops: https://bellomoassociates.com/workshops/
For more information, call us at (717) 845-5390.
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Ways to work with Jeff Bellomo
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