“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.”
– Ayn Rand, novelist, playwright, and screenwriter
Someone you can trust
Most families of wealth have, or will have, some form of a trust. And next to determining the types of assets to go into the trust, choosing someone to govern the trust may be the most important decision you make.
Often families don’t know who to choose to take on this important role. Or, it’s entirely possible they don’t realize the tremendous responsibility and risk of this role.
What’s a fiduciary anyway?
Fiduciary [fi-doo-shee-er-ee] (n). from the Latin fiducia, meaning “trust,” a person or business who has the power and obligation to act for another under circumstances which require trust, good faith and honesty. Most commonly a trustee of a trust, fiduciaries can include business advisers, attorneys, guardians, administrators of estates, real estate agents, bankers, stockbrokers, title companies or anyone who undertakes to assist someone who places complete confidence and trust in that person or company. Characteristically, the fiduciary has greater knowledge and expertise about the matters being handled. A fiduciary is held to a standard of conduct and trust above that of a stranger or of a casual businessperson. He/she/it must avoid “self-dealing” or “conflicts of interests” in which the potential benefit to the fiduciary is in conflict with what is best for the (person who trust him/her/it).
Simply said, choose your fiduciary carefully. Your legacy is in their hands.