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Understanding Who Qualifies As A Professional Fiduciary

Several Woodland Hills clients come to us here at The Law Offices of Alice A. Salvo claiming that those whom were entrusted with the management of an estate failed to uphold their fiduciary duty. If you also have such a complaint, then the first thing that you will want to establish is whether or not the person in question is considered by law to be a professional fiduciary. Knowing this will determine what sort of recourse you may have in holding that party responsible for his or her actions.

The exact definition of a professional fiduciary is listed in the California Business and Professions Code. According to the statute, such a classification is given to one licensed by the state who acts as a conservator to a person, an estate, or both for two more people who are neither related to each other nor to the fiduciary. One who is licensed to serve as an agent under durable power of attorney for either health care or finances, or as trustee to three or more individuals may also be considered to be a professional fiduciary.

Conversely, the state does not recognize the following entities as being professional fiduciaries:

  •          Trust companies
  •          Financial institutions insured by the Federal Deposit Insurance Corporation
  •          Public agencies
  •          Nonprofits or charitable trusts

Employees working for any of the aforementioned entities are also not considered to be professional fiduciaries, as are those working as investment advisers or brokering agents.

If the party in question in your case does meet the criteria for being a professional fiduciary and you believe that he or she has violated his or her duty, you can file a complaint with the Professional Fiduciaries Bureau of the Department of Consumer Affairs.

To learn more about dealing with estate representatives, please continue to explore our site.