The Critical Roles a Fiduciary Can Serve

Helping Families Navigate Life’s Most Important Decisions

When people think about estate planning, they often focus on documents- wills, trusts, and powers of attorney.

But behind every document is an even more important question:

Who will actually carry out these responsibilities?

This is where fiduciaries play a critical role.

Trustee

A trustee is responsible for administering a trust according to the wishes of the person who created it.

This can involve:

• Managing investments and financial accounts

• Distributing funds to beneficiaries

• Paying expenses and taxes

• Communicating with beneficiaries

• Ensuring the trust operates according to the law and the trust document

Serving as trustee requires financial judgment, organization, and careful attention to fiduciary duty.

Attorney-in-Fact

An attorney-in-fact operates under a durable power of attorney and may handle financial matters if someone becomes unable to manage their own affairs.

Responsibilities can include:

• Paying bills

• Managing bank accounts

• Working with financial institutions

• Signing legal documents

• Protecting the person’s financial well-being

Because these powers are significant, the role requires high integrity and careful accountability.

Personal Representative

When someone passes away, a personal representative (also called an executor) settles the probate estate.

This often involves:

• Gathering assets

• Paying creditors

• Working with attorneys and accountants

• Filing tax returns

• Distributing assets to beneficiaries

During a time of grief, this administrative responsibility can feel overwhelming for families.

Health Care Surrogate

A health care surrogate steps in when someone cannot make their own medical decisions.

These moments are deeply personal and often emotional. The role requires thoughtful judgment and careful respect for the individual’s wishes.

Bill Paying and Financial Organization

Another role that often goes unnoticed—but is incredibly valuable—is helping individuals organize their financial lives.

This may include:

• Paying bills on time

• Organizing financial records

• Reviewing statements for accuracy

• Reducing unnecessary expenses

• Preparing records for tax professionals

For many seniors, this service provides tremendous relief and peace of mind.

Why Experience Matters

Each of these roles carries real legal and ethical responsibility.

When individuals appoint someone to serve in these roles, they are asking that person to act faithfully, prudently, and in the best interests of others.

Professional fiduciaries bring experience, structure, and accountability to these responsibilities.

Next in this series: Building the Right Team to Serve Families Well