COMMON TERMS TO KNOW
Professional Fiduciary Licensing was created by legislation that passed and was enacted into law in 2007 to regulate non-family member professional fiduciaries, including conservators, guardians, trustees, and agents under durable power of attorney.
Professional fiduciaries provide critical services to seniors, persons with disabilities, and children. They manage matters for clients including daily care, housing and medical needs, and also offer financial management services ranging from basic bill paying to estate and investment management. Requirements for licensing include passing an examination and completing 30 hours of approved education courses (See Pre-Licensing Education Information), and earning 15 hours of continuing education credit (2 hours must be in ethics for fiduciaries) each year for renewal. The word fiduciary means trust (fiducia) and faith (fides).
A trustee is a person or firm that holds and administers property or assets for the benefit of a third party.
Individual that meets with client to assess how they are doing. Often a Care Navigator is the eye’s and ears for family and works closely to help create goals, reassess a care plan, and help client communicate personal/medical needs with medical providers, family, or legal agent acting on the client’s behalf.
Special Needs Trust
Special needs trusts are made specifically for the benefit of disabled, drug addiction, or mentally ill beneficiaries. We all have relatives that may have a disability that prevents them from making good decisions. A Special Needs Trust allows a designated person other than the beneficiary to distribute funds when allowable, needed, or appropriate. The goal is to preserve the assets over the beneficiaries lifetime.
Meets with client at home to assess organization of files, create a budget, pay bills, assist in answering questions, and help file correspondence. Can include bills being paid at from office if preferred.
An executor is a legal term referring to a person named by the maker of a will or nominated by the testator to carry out the instructions of the will.
A guardian or a protector is appointed by a judge to manage the financial affairs and/or daily life of another due to physical or mental limitations, or old age.
Durable Power of Attorney—Finance & Health
A power of attorney is a legal document that gives someone you choose the power to act in your place. In case you ever become mentally incapacitated, you’ll need what are known as durable powers of attorney for medical care and finances.