Legal Duties of Fiduciaries

1. 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

2. 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

3. 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

4. Four General Duties of Fiduciaries • 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. Other Information in the Guides • Other fiduciaries • Government benefits • Avoiding problems with family or friends • Working with professionals IDoA Adult Protection & Advocacy Conference 2013

13. Other Information in the Guides • Financial exploitation • Consumer scams • Resources IDoA Adult Protection & Advocacy Conference 2013