Being entrusted with the responsibility of a fiduciary can be an honor, but it also comes with significant obligations. A fiduciary is someone who manages another person’s assets or affairs, and this role demands a high level of trust and integrity.
However, circumstances may arise where you no longer feel willing or able to fulfill those duties. This raises the question of whether or not you can back out of the fiduciary role.
Understanding the fiduciary role
A fiduciary is duty-bound to act in the best interests of the person they represent. This role typically involves managing financial matters, making decisions on behalf of the estate and maintaining a high standard of loyalty.
Assessing personal capacity
Life is unpredictable, and circumstances can change unexpectedly. Whether due to health issues, personal matters or other unforeseen challenges, a fiduciary may find themselves questioning their ability to continue in the role. In such situations, you should assess your personal capacity honestly.
Legal implications and alternatives
It is important to acknowledge that fiduciary roles often come with legal implications. Understanding any legal obligations or consequences associated with stepping down is crucial. In some cases, appointing a successor may provide a way to navigate the situation without completely abandoning the fiduciary role.
A recent survey revealed that 46% of respondents had a written will, and for each of those wills there will be an executor or fiduciary. Assigning a fiduciary is a necessary step for the probate process, but that does not mean you have to be the one to fulfill that role if you are no longer willing.