Legal Duties of Fiduciaries
•
Lori Stiegel, American Bar Association Commission on Law & Aging
•
Howard Berk, Illinois Disability Association
•
Wendy Cappelletto, Office of the Public Guardian of Cook County
•
Kerry Peck, Peck Bloom LLC
IDoA Adult Protection & Advocacy
Conference 2013
1
Acknowledgement

This session is based on four national
guides for laypersons that the Consumer
Financial Protection Bureau (CFPB) will
publish through a contract with the
American Bar Association Commission on
Law and Aging. The CFPB, through its
collaboration with the Commission and
experts in six states, also will publish
state-specific guides for those six states,
one of which is Illinois.
IDoA Adult Protection & Advocacy
Conference 2013
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Four Types of Fiduciaries
Agent under a power of attorney
 Guardian of the estate
 Representative payee and VA fiduciary
 Trustee under a revocable living trust

IDoA Adult Protection & Advocacy
Conference 2013
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Four General Duties of Fiduciaries
1.
2.
3.
4.
Act only in person’s best interest
Manage person’s money & property
carefully
Keep person’s money & property
separate from their own
Keep good records and report as
required
IDoA Adult Protection & Advocacy
Conference 2013
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Duty 1: Act only in person’s best
interest

All four types of fiduciaries should:
◦ Read & follow key documents
◦ Avoid conflicts of interest
◦ Avoid borrowing, loaning, or giving the
person’s money to themselves or others
◦ Avoid paying themselves unless allowed
IDoA Adult Protection & Advocacy
Conference 2013
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Duty 1: Act only in person’s best
interest

Agents & guardians also should:
◦ Involve person in decisions to extent possible
◦ Avoid changing person’s estate plans

Agents & trustees also should:
◦ Understand when their authority takes effect
IDoA Adult Protection & Advocacy
Conference 2013
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Duty 2: Manage person’s money &
property carefully

All four types of fiduciaries should:
◦ Protect person’s money or property
◦ Pay bills and taxes on time

Agents, guardians, & trustees also should:
◦
◦
◦
◦
List person’s/trust’s money, property, & debts
Collect debts owed to person
Invest assets carefully
Carefully choose & monitor helpers
IDoA Adult Protection & Advocacy
Conference 2013
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Duty 2: Manage person’s money &
property carefully

Guardians also should:
◦ File inventory with court
◦ Make financial plan
◦ Help person get benefits due

Rep payees/VA fiduciaries also should:
◦ Meet needs for food, clothing, & shelter
◦ Consider the person’s dependents
◦ Protect money from creditors’ claims
IDoA Adult Protection & Advocacy
Conference 2013
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Duty 3: Keep person’s money &
property separate

All four types of fiduciaries should:
◦
◦
◦
◦
Keep person’s money separate from theirs
Properly title money or property
Sign documents as fiduciary
Pay person’s expenses from person’s funds
IDoA Adult Protection & Advocacy
Conference 2013
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Duty 4: Keep good records &
report as required

All four types of fiduciaries should:
◦
◦
◦
◦
Keep detailed list of assets received or spent
Keep receipts & notes, even of small expenses
Avoid paying in cash
Keep detailed records of work & charge
reasonable fee if being paid
IDoA Adult Protection & Advocacy
Conference 2013
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Duty 4: Keep good records &
report as required

Guardians also should:
◦ File accountings with court as required
◦ File final accounting after person dies

Rep payees/VA fiduciaries also should:
◦ File reports with agency as required
◦ Keep agency informed about person’s status
◦ Keep agency informed about themselves
IDoA Adult Protection & Advocacy
Conference 2013
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Other Information in the Guides
Other fiduciaries
 Government benefits
 Avoiding problems with family or friends
 Working with professionals

IDoA Adult Protection & Advocacy
Conference 2013
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Other Information in the Guides
Financial exploitation
 Consumer scams
 Resources

IDoA Adult Protection & Advocacy
Conference 2013
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