FIDUCIARY REPRESENTATION
The fiduciary duty is one of the highest legal and ethical responsibilities one can undertake. Our attorneys have guided and represented fiduciaries not only in carrying out their duties, but have themselves served as trustee, personal representative, attorney-in-fact, and guardian on more than one hundred occasions.
WHAT IS A FIDUCIARY?
A fiduciary is someone who has been entrusted with the power to act on behalf of another. Commonly, a fiduciary controls or has access to someone’s money or property, e.g., a Personal Representative of an estate, a Trustee managing funds held in trust for a beneficiary, or someone using a Power of Attorney to utilize the assets of another person. The fiduciary duty is one of the highest legal and ethical responsibilities one can undertake. The rules governing the actions of a fiduciary can be complex but are rooted in the determination of what a reasonably prudent person would do in the principal’s shoes. Problems arise when interested persons disagree with the fiduciary about what is “reasonable” under the circumstances. Breach of fiduciary duty is a recognized cause of action in Maryland, the District of Columbia, and many other jurisdictions.
If duties are not executed properly, fiduciaries can face significant liability, so trusted legal representation is a must.
FIDUCIARY POSITIONS
Personal Representatives
The personal representative plays a critical role in the management and distribution of your assets after your passing. If you do not name a Personal Representative (sometimes referred to as executor) in your Last Will and Testament, the court will select a representative for you. This will most likely be your spouse or a close relative, but not necessarily the person in your life who is best suited to the task.
Trustees
A trustee is the person, institution, or other organization named in a trust by the person who creates the trust (the grantor or settlor) to manage the assets held within the trust. Trustees are empowered to manage and invest the property held in trust for the benefit for the beneficiaries.
Guardians
Guardians have legal authority to act on behalf of someone, whether their person, property, or both, who is disabled and cannot make decisions for himself or herself. Their actions must be consistent with the best interests of the incapacitated person. A guardian can be of person or of property, and guardians are appointed by a Court for minor children and disabled adults in guardianship proceedings.
Attorneys-In-Fact & Power of Attorney
An attorney-in-fact is a person who is authorized to act on behalf of another person, usually to perform business or other official transactions. The person represented usually designates someone as their attorney-in-fact by assigning power of attorney.
An attorney-in-fact is not required to be a licensed attorney. In fact, attorneys-in-fact don’t require any special qualifications at all. They can be a family member, a close friend, anyone chosen by the principal (the person creating the Power of Attorney).
At King Hall, we have served as fiduciaries and can advise you in your own fiduciary role every step of the way.
At King Hall, our fiduciary obligation is to you, our clients. You can count on our team to handle your case with the utmost care and highest degree of loyalty.
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