You’ve probably heard the word fiduciary in conversations about trusts, power of attorney, and financial decisions. It can sound formal, but the meaning is straightforward:
A fiduciary is someone who is legally required to act in another person’s best interest—with a duty to be loyal, careful, transparent, and accountable.
Common fiduciary roles families run into
- Trustee: manages trust assets and follows the instructions in the trust
- Agent under Power of Attorney (POA): can handle finances/transactions only within the scope of the POA
- Executor: carries out a person’s wishes after death
- Professional fiduciary: a neutral third party (often used when there’s no family available, or when family dynamics are complicated)
What “acting in someone’s best interest” really looks like
A fiduciary is generally expected to:
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Avoid conflicts of interest (no self-dealing)
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Keep strong records (receipts, statements, documentation)
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Make decisions consistent with the legal documents (trust/POA)
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Communicate appropriately with the people who are entitled to information
- Protect the person’s safety, stability, and assets—especially when they’re vulnerable
Why this matters for seniors and their families
Senior transitions often involve urgency (health changes, moves, medical needs). Urgency can create confusion. Understanding who has legal authority—and what that authority includes—helps protect the senior and can reduce family conflict.
If a senior still has capacity, they can proactively hire a professional fiduciary and formally authorize them through a durable power of attorney and/or trust documents. This can be a helpful solution when there’s no family available (or no family member who can realistically take on the responsibility), because it creates structure, oversight, and protection before a situation becomes a crisis.
