How To Sign Documents As a Fiduciary

Have you been named as a fiduciary for a loved one in a legal document but don’t understand what you can or cannot do?  If you answered ‘yes,’ keep reading to learn more. A ‘fiduciary’ is a person who is given a responsibility and held to a standard of care in carrying out their responsibility.  Failure to meet the standard of care can cause a fiduciary to be held liable for any loss that may occur. Examples of fiduciaries include:

• A financial agent named in a Durable Power of Attorney (financial decision-making), or
• A Surrogate named in a Designation of Healthcare Surrogate (medical decision-making), or
• A Trustee named in a Revocable Trust, or a Special Needs Trust Agreement, or
• A Guardian for an incapacitated person or a minor, or
• A Personal Representative for the estate of a decedent.

A fiduciary acts for an individual who is incapacitated and unable to handle either financial affairs, medical decisions, or both.  Sometimes, a fiduciary acts on behalf of a decedent to manage their financial affairs and distribute the assets to the intended beneficiaries.  Being a fiduciary is not something any of us studied in school or read a book about, so it is important to have an experienced attorney represent you.  An experienced attorney can guide you on how to use the legal document and how to have your authority honored by financial institutions or healthcare professionals.  Since each legal document can be written differently, it is necessary to have an experienced attorney read the legal documents in order to advise you of the scope of your authority as well as your limitations (i.e., decisions you cannot make).  An experienced attorney will also be able to guide on the importance of recordkeeping and documenting your handling of the incapacitated person’s financial affairs.

Fiduciaries who are Trustees, Guardians, or Personal Representatives need to be informed of the Florida laws that apply to them.  Florida has specific laws that apply to trustees, guardians, and personal representatives.  Working with an experienced attorney can be beneficial so that you comply with the laws that are specific to the legal document that appoints you.

If you have since assumed responsibilities for the financial and physical well-being of an incapacitated person, you might find yourself having to sign documents (i.e. nursing home admission agreement) for the incapacitated person.  To avoid incurring personal financial liability, after signing your name write: (signature), POA. This will indicate you are signing in your fiduciary capacity not in your individual capacity.

Being a fiduciary is more than just being an adult child or a sibling of an incapacitated person. It is necessary to become educated on your role and responsibilities.  That is why you should partner with a Board-Certified Elder Law Attorney. I work with clients living in as well as outside the State of Florida. I can meet with clients in person or by video conference. I have experience representing guardians, trustees, personal representatives, healthcare surrogates, and financial agents named in a Durable Power of Attorney.  I will be able to help guide you through your fiduciary duties and responsibilities, including how to sign documents so that you don’t incur personal financial liability, and assist you with preparing annual accountings.

If you are reading this article/blog and you and the incapacitated person don’t live in Florida, contact the National Academy of Elder Law Attorneys (www.naela.org )  to find an elder law attorney in your locale and give yourself and your family the gift of peace of mind.