When you create an estate plan, your lawyer will ask you to appoint a fiduciary. The role of a fiduciary is the ultimate form of confidence. You’re entrusting someone with your most intimate information and assets. In return, they promise to act in your best interest. The duties of the fiduciary can be complicated. When establishing an estate plan, you should first understand the fiduciary agreement.  

4 FAQ About Fiduciary Duties

What is a fiduciary duty?

Fiduciary duties include loyalty, good faith, confidentiality, prudence, and disclosure. Your fiduciary must act in your best interest without furthering their own or violating the law. They will not disclose the details of the private information you’ve shared with them. They will perform their duties with skill and care. They must remain in communication with you and be completely honest in all matters.  

Who can act as a fiduciary?

Some fiduciary roles automatically exist in certain situations. You have a fiduciary agreement with your lawyer, doctor, real estate agent, and stockbroker. This also applies to the household. You have a fiduciary obligation to your children, and you and your spouse have a fiduciary obligation to each other. In estate planning, you may appoint anyone to act as your fiduciary. However, most people choose their attorney. As lawyers, they understand the complexity and depth of fiduciary responsibility. They’re also the most knowledgeable about your assets and capable of executing your wishes.  

What are some roles that come with it?

Your fiduciary manages the assets of your estate, including property, finances, and investments. They update you and your creditors on the condition of the estate. They manage its assets and pay necessary taxes and debts. After you pass, they’ll ensure your assets are distributed according to your estate plan. 

When should you seek legal advice? 

If you’re uncertain where fiduciary obligation exists, consult a lawyer before making any decisions. In some cases, a fiduciary might breach their duties. If you believe the fiduciary has mismanaged the estate's assets or distributed them unfairly, contact an estate lawyer.

If you’re unclear about your fiduciary duties, reach out to Schaller Campbell & Untied Attorneys. Since 1914, their dedicated lawyers have built a reputation for success and discretion. Whether you need an estate plan or are going through a divorce, they'll provide dedicated and steadfast representation. If you’re in the area of Newark, OH, schedule a consultation at (740) 349-8505. For a complete list of their services, including probate and estate law, visit their website.