When you hear “fiduciary services,” you might think of financial advice. But fiduciary services are much more than that. They involve a deep, personal commitment to protect and manage your assets, honor your intentions and make sensitive decisions on your behalf.
What You Might Not Know About Fiduciary Services
1. Legal Obligations: A Commitment Beyond Promises
A fiduciary is legally and ethically bound to act solely in your best interest. This means they must avoid conflicts of interest, make careful decisions and always prioritize your needs over their own. They are required to document their actions, review investments regularly and communicate clearly to prevent legal issues and maintain trust.
2. Scope of Responsibilities: Beyond Investments
Fiduciary services extend well beyond managing investment portfolios. They often include:
- Administering trusts and estates before and after death
- Managing cash flow and paying ongoing bills
- Supporting individuals during periods of incapacity
- Facilitating communication between beneficiaries and professionals
- Overseeing charitable trusts, family foundations, and legacy planning
Fiduciaries often handle personal and emotional matters, such as resolving family disputes, maintaining real estate and acting swiftly in emergencies.
3. Types of Fiduciaries: Diverse Roles for Your Needs
Fiduciaries can be individuals, institutions, or a combination of both. Common roles include:
- Trustee: Manages a trust and ensures it is used according to your wishes.
- Executor: Oversees the distribution of your estate after your passing.
- Agent under Power of Attorney: Acts on your behalf in financial and legal matters if you become incapacitated.
- Guardian: Cares for a minor or an incapacitated adult.
- Trust Company: Provides professional fiduciary services for trusts and estates.
At Johnson Financial Group, we are a corporate fiduciary, offering stability, continuity, and experienced leadership through life’s most important transitions.
4. Consequences of Breaching Fiduciary Duty
Breaching fiduciary duty can lead to serious legal and personal consequences. This includes lawsuits, financial penalties, and removal from a fiduciary role. Beyond legal risks, a breach can damage relationships among family members, beneficiaries, or business partners, sometimes irreparably. Even small mistakes, like not following the terms of a trust or failing to keep beneficiaries informed, can have lasting effects. That’s why we emphasize careful documentation, clear communication, and consistent adherence to fiduciary responsibilities.
5. Benefits of Working with a Fiduciary Advisor
For many individuals and families, working with a fiduciary provides more than just financial or technical expertise. It offers peace of mind, knowing that decisions will be made objectively, consistently and with your best interests in mind. Whether you’re planning for future generations or dealing with an unexpected life event, a fiduciary ensures continuity and clarity.
- Family Disputes: Fiduciaries can act as impartial mediators, helping to resolve conflicts and ensure fair treatment of all family members.
- Risk Management: They provide expert advice on managing and mitigating financial risks, safeguarding your wealth for future generations.
- Tax-Aware Planning: Fiduciaries help navigate the complex tax landscape, ensuring your estate is structured to minimize tax burdens.
- Upholding Values and Goals: They work closely with you to understand your unique family values and goals, ensuring your wishes are carried out with care and precision.
Beyond Financial Advice
Fiduciary services offer more than just financial management; they provide personal and emotional support during life’s most challenging moments. By choosing a fiduciary, you build a relationship with a trusted partner who acts with loyalty, prudence, and care. This ensures peace of mind, allowing you to focus on what truly matters—your family and your legacy.
At Johnson Financial Group, working with a fiduciary means having a partner who listens, follows through, and always puts your best interests first. Whether you are planning for the future or navigating a transition, we guide you with care, clarity, and purpose.
