When it comes to estate planning, one of the most important decisions you will make is choosing the right person to manage your affairs if you become incapacitated or pass away. That individual may be a licensed fiduciary—a professional who is legally and ethically bound to act in your best interests. But what exactly does that mean, and how do you know if you need one?
In this article, we will break down what a licensed fiduciary is, their qualifications, and their role in an estate plan.
What Is a Licensed Fiduciary?
A licensed fiduciary is a person authorized by the Arizona Supreme Court to manage the affairs of another person. This may include managing finances, health care decisions, or property on behalf of someone who is incapacitated or deceased.
Fiduciaries are often appointed in the following roles:
- Personal Representative (Executor of a Will)
- Trustee (under a trust agreement)
- Agent (under a power of attorney)
Arizona law requires a license for individuals serving in any of these capacities if they are not a family member of the individual that is incapacitated or deceased.
When Might You Need a Licensed Fiduciary?
You might consider appointing a licensed fiduciary in your estate plan if you don’t have a family member or friend who is willing to serve or that you trust to handle your affairs, if your estate is particularly complex, if you anticipate family conflict, or if you want to ensure an impartial, professional party handles your affairs.
We’re Here to Help
If you have questions about licensed fiduciaries or if you are unsure whether you need one, contact our office today to schedule a free consultation with an experienced estate planning attorney.
