A private fiduciary is a person or organization that has been licensed by the Arizona Supreme Court to serve as a Guardian of a person, a Conservator of their finances, or as a Personal Representative of a deceased person’s estate or Trustee. A private fiduciary serves in a professional capacity is not a family member, and can never become the beneficiary of the estate. The appointment of a private fiduciary does not change an Estate Plan; only who will carry it out. Similar to a CPA or attorney, a fiduciary charges a fee for their services. These fees are reviewed and approved by the Superior Court of Arizona.
A conservator is appointed by the Arizona Superior Court to manage the assets of a protected person for their benefit. All work is done under the supervision of the court, and each year the Conservator must file an accounting with the court. This annual accounting reports all receipts and disbursements made during the year. The court reviews and approves the Conservator’s annual accounting.
A guardian is appointed by the Arizona Superior Court to make all non-financial decisions for adults who are no longer able to make informed decisions for themselves. The Guardian consents to medical treatments or surgeries and monitors their clients’ medical care. The Guardian also assures that their client is living in the least restrictive, appropriate environment. A Report of Guardian is submitted annually to the court for review.
A Personal Representative (also known in other States as an Executor) can be appointed by the court to administer the estate of a person who died, referred to as the “Decedent.” The Personal Representative is responsible for identifying, inventorying, and protecting all the assets in the estate, paying bills and allowable claims against the estate, locating the heirs and/or beneficiaries, paying administrative costs of the estate, filing all appropriate income and estate tax returns and distributing the remaining assets to the heirs or beneficiaries.
A trustee manages property held by a trust. A trust is a legal entity created by one or more persons called “Trustors” who appoint a Trustee to manage the trust’s assets according to the terms of the trust. Private fiduciaries are often designated Successor Trustees of an existing trust because of their experience in managing and settling estates or as a compromise in disputed matters.
The total cost, including requisite legal fees, for a professional Guardian or Conservator varies greatly depending on the complexity of the estate.
A Power of Attorney, or POA, is an instrument used by a person (the principal) to appoint another person (the agent, also known as an Attorney-in-Fact) to act on their behalf. There are several types of POA authorized under Arizona law. While a POA may confer significant authority to an agent, it also creates a duty of fidelity and good faith by the agent to the principal.