A “fiduciary” is a person or entity who is in a relationship of trust and confidence to another. Such individuals are held to a high standard of care and trust. They are obligated to act in the best interests of the person for whom they are acting as a fiduciary rather than in the fiduciary’s own personal interests. Included in this category are Personal Representatives, Trustees, Agents, Guardians, and Conservators.
Personal Representative:
A Personal Representative is an individual or entity that has been appointed by a court in a probate proceeding to administer the probate Estate of a decedent (whether governed by the decedent’s Will or by the state’s laws of intestate succession). This appointment may be based upon the nomination of a Personal Representative in the decedent’s Will; or it may be based upon priority established by Arizona statute if the Personal Representative nominated in the Will is unable or unwilling to act or if the decedent died without a Will.
Trustee:
A Trustee is an individual or entity who has been appointed to administer a Trust created by a Trustor, a Settlor, or a Grantor for the benefit of a Beneficiary. Often, the appointment of a Trustee is made by the Trust document with no involvement of a court. Other times it may be necessary to have a court appoint a Trustee because there is no named Trustee or that Trustee is unable or unwilling to act.
Agent:
An Agent is an individual or entity who has been appointed to act for the benefit of another under a Power of Attorney created by that other person. The Power of Attorney might be either a Durable General Power of Attorney (to handle legal and financial affairs) or a Health Care Power of Attorney (to handle health and medical care decisions).
Guardian:
A Guardian is an individual or entity who has been appointed by a court to act on behalf of an “incapacitated” person who might need a Guardian either because of age (i.e., he or she is a minor) or because of health problems (such as a mental or physical illness or disability) which renders the person unable to make or communicate responsible personal decisions. The Guardian is then responsible to make provisions for the person’s care, comfort, and maintenance among other things.
Conservator:
A Conservator is an individual or entity who has been appointed by a court to handle the legal and financial affairs for another individual. This might be either because the individual is a minor or because the court has determined that the individual is unable to manage his or her legal or financial affairs effectively for reasons due to health problems (such as a mental or physical illness or disability). The Conservator is then responsible for making such financial decisions on behalf of the person.