Referring the Case to the Right Fiduciary

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Referring the Case to the Right Fiduciary

• Adult Protective Services
• Exploitation Against Elderly and Vulnerable
  Adults
• Statewide Annual Conference
• 2002

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Presented By Richard T. Vanderheiden

• Maricopa County Public Fiduciary
• Director

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Fiduciary Definition

• One who holds a position of trust and confidence
  for another.

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Types of Fiduciaries

• Individuals
• Family member or Friend
• Professional Fiduciary Person
• Government Fiduciary
• County Public Fiduciary
• Arizona Department of Veterans Services
• Corporate Fiduciary
• Banks and Trust Companies
• Non-Profit Fiduciary

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Key Factors to Consider prior to making a referral

• Determining Factors
• Person that meets criteria by statute and there
  is a demonstrated need by statute.
• Is the person in physical risk?
• Will the person suffer a financial loss if the
  assets are not protected?
• Will the appointment of a fiduciary be an
  advantage to the persons situation?

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Criteria for Choosing a Fiduciary

• The Fiduciary must possess the following
  characteristics
• The knowledge to handle the administration of a
  guardianship, conservatorhip, probate estate or
  trust
• The ability to make prudent investment decisions,
  manage real property, handle benefit entitlements
  and tax issues.

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Criteria for Choosing a Fiduciary

• Sufficient experience to deal with complex issues
  and research necessary details for informed
  decisions.
• The time needed to ensure competent
  administration.
• Be certified by the State of Arizona if public or
  private fiduciary.

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AZ Certification Requirement - A.R.S. 14-5651

• Bound to a Code of Conduct
• AZ fiduciaries shall perform all duties and
  discharge all obligations in accordance with AZ
  Law AZ Supreme Court Rules governing
  certification.

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Role of Guardian

• A guardian is . . .
• Coordinator of services
• Surrogate decision maker
• An advocate for the ward

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Myths on Guardianship

• A guardian is not . . .
• a companion
• a therapist
• a reformer
• a warden
• a savior
• a surrogate family
• a caregiver
• a health care provider

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Individual as Fiduciary

• Clients often want friends or relatives to handle
  their estate
• Benefits
• Family Knowledge
• Sensitive to familys needs
• Well informed on unique
  family assets
• Inexpensive

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Individual as Fiduciary

• Concerns
• Lack of Financial Expertise
• Lack of objectivity
• Indecisive
• Dishonesty
• No security for loss of assets
• Death of individual
• tax problems

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Title 14, Article 6. Public Fiduciary

• A.R.S. 14-5602(A)
• The court shall appoint a public fiduciary for
  those persons or decedents estates in need of
  guardianship, conservatorship or administration
  and for whom there is no person or corporation
  qualified and willing to act in that capacity.

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Public Fiduciary

• Benefits
• Diverse experience in handling complex matters
• Least intrusive
• Last Resort
• Demonstrated Need
• Cost Effective
• High Accountability
• Neutral approach to decision making

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Public Fiduciary

• Benefits
• Insured for losses
• Mental Health experience
• Guardian administration experience
• Continuity of fiduciary services

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Characteristics that set us apart from other
fiduciaries in AZ

• Multi-disciplinary approach to initial case
  staffing
• Quality Assurance Annual Case Reviews
• Mental Health Mandates
• Financial Abuse Investigations
• Fee Schedule
• Exempt from Bond Requirements

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Fiduciary of Last Resort

• Public Fiduciary as last resort guardian,
  conservator, personal representative
• We are not fiduciary of first alternative

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Public Fiduciary

• Concerns
• High Demand for Services
• Rural Counties
• Perform multiple tasks limiting ability to
  specialize
• All County Fiduciaries
• Limitations over resources to perform
• Stigma of government oversight

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Type of Cases to Refer to MCPF

• Size of Estate
• Vulnerable Person needing Protection
• Potential or Suspected Abuse
• Difficult person with substantial assets needing
  protection

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Private Fiduciary

• Benefits
• Neutral approach to decision making
• Varied range of experience in handling complex
  matters
• May specialize
• May limit practice area
  to specific type of client
  or by knowledge and
  expertise areas

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Private Fiduciary

• Concerns
• Currently no audits
• Variability of practice
• No deep pocket available for recovery
• Cost Effectiveness Moderate to Highly Expensive
• Potential Lack for case continuity May transfer
  the case after resources are depleted.

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Corporate FiduciaryBanks or Trust Companies

• Recognized as a good choice for
• Large and complicated Estates with no human
  service related issues
• Stock and Bond Assets
• Trust Estates

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Corporate FiduciaryBanks or Trust Companies

• Benefits
• Full time job
• Knowledgeable about Probate Laws
• Organized to meet deadlines
• Investment management expertise
• Computerized accountings
• Audited

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Corporate FiduciaryBanks or Trust Companies

• Institution has unlimited life
• Objective and Impartial
• Deep Pocket - Can afford to pay for mistakes
  made.

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Corporate FiduciaryBanks or Trust Companies

• Common Reasons for Not Choosing a Corporate
  Fiduciary
• Fees Cost prohibitive for most clients with
  Adult Protective Services involvement.
• Do not handle guardianship matters.
• Do not deal with social or mental health
  problems.
• Impersonal or unknowledgeable about family
• Sometimes inflexible in their policies

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Locating a Certified Fiduciary

• www.supreme.state.az.us/fiduc
• Contact your local fiduciary for referral packet
  and intake information