A fiduciary is a person given the responsibility of caring for your finances when you are unable to do so. Many times people choose a trusted friend or family member to care for their financial assets. Why use a professional fiduciary instead? Consider our top three reasons.
Dementia is a general term for loss of memory and other mental abilities. It has always been a common affliction among the elderly, but has become more and more prevalent in recent years. Awareness, acceptance, early treatment and intervention are crucial to help slow and manage the effects of this potentially devastating problem.
It is essential that a trustee exercise an extreme amount of caution when dealing with the trust and its assets. The personal duties of a trustee start with the most important: never, ever, under any circumstances commingle estate funds with the trustee’s personal funds. This is an essential component of the duty to avoid a conflict of interest. A trustee must be aware of and avoid any situation that creates a conflict of interest with the terms of the trust and the duties of the trustee.
I developed the idea of a communications notebook when I was caring for my grandmother which became a valuable tool that helped me stay on top of her day-to-day care while ensuring she maintained a high quality of life. Visitors are a very important aspect of ensuring the elder in your care has enough social stimulation, but there may also be times when you need to curtail a situation where there is too much activity.
The duty of loyalty includes the duty to deal impartially with all beneficiaries. This can be especially challenging if there are many beneficiaries each with different wants and needs. It is further complicated when the trustee is also a beneficiary. Above all, the terms of the trust dictate how the trustee must proceed with regard to the beneficiaries. When the trust documents are not explicit the trustee must use their best judgment to perform his job.
When I was taking care of my grandmother I developed a communications notebook as a tool to help her day-to-day caretakers and myself manage her quality of life. In the past two newsletters I covered the overall purpose of the communications notebook and the Weekly Activity Schedule included in Tab 1. This month I will address the second tab, which includes the Daily Meal Schedule.
The beneficiaries of the trust are those who enjoy the benefit of a trust’s assets. Beneficiaries may include the spouse, children, associates or other family members of the creator of the trust. Non-profit organizations, religious institutions and other charitable entities as well as businesses may also be beneficiaries. The Trustee has certain duties to all the beneficiaries of the trust, which may become more complicated when there are different classes of beneficiaries or when the trustee is also a beneficiary. One very important duty is the duty of loyalty to the trust’s beneficiaries.
The Daily Schedule tab of the Communications Notebook is an excellent way to ensure the elder in your care continues to lead a full life that she enjoys. It helps caregivers understand what activities are important and ensures that they have a full range of ideas for what to do each day. You can keep a close eye on how your elder is doing each day too.
Lindsay Leonard of Santa Barbara Estate Services became a licensed California Professional Fiduciary this year and earned certifications in Professional Fiduciary Management for Conservators and for Trustees. She also became a National Certified Guardian and joined the Professional Fiduciary Association of California. These credentials will allow her to enhance the scope of services offered to existing clients and expand her practice to a wider audience.
This is the third article in a series detailing the duties of a trustee. We have explored the duty of a trustee to comply with the terms of the trust instruments as well as the duties to control trust property and make it productive. This time I will address the duty to enforce claims the trust has against others and to defend actions against the trust. Before taking on the responsibility of acting as a trustee it is crucially important that you fully understand all the legal duties that come with the job.
