One of the most important decisions in any estate plan is choosing who will step in to manage your affairs if you cannot. Who will carry out your wishes after your death? This role is known as a "fiduciary" and while many people instinctively look to a trusted family member or friend, that is not always the most effective, best choice for your unique situation.

At Limitless Law PLLC, we often remind clients that good estate planning is not just about documents, it is about reducing stress, preventing conflict, and making life easier for the people you care about. In some cases, that goal is best served by appointing a professional or corporate fiduciary.

What Is a Fiduciary?

A fiduciary is a person or organization legally obligated to act in someone else’s best interests. In Washington State estate planning, fiduciaries commonly serve as:

·      Personal Representatives (also called executors) of wills

·      Trustees of revocable or irrevocable trusts

·      Agents under Powers of Attorney (financial or healthcare)

·      Guardians for minors or incapacitated adults

Washington law imposes strict duties on fiduciaries, including duties of loyalty, care, honesty, and accountability. A fiduciary must follow the governing documents and comply with state law—sometimes under court supervision.

What Is a Professional or Corporate Fiduciary?

A professional fiduciary is an individual who serves as a fiduciary as part of their profession. A corporate fiduciary is typically an institution, such as a trust company or bank trust department, that provides fiduciary services.

These fiduciaries are paid for their work and are experienced in handling responsibilities such as:

·      Managing and safeguarding assets

·      Paying bills, taxes, and creditors

·      Maintaining detailed financial records and accountings

·      Communicating with beneficiaries

·      Navigating probate, trust administration, and court requirements

·      Making impartial decisions under difficult circumstances

Unlike friends or family members, professional fiduciaries are expected to remain neutral, consistent, and focused on compliance and administration rather than personal dynamics.

When Might a Professional or Corporate Fiduciary Be the Right Choice?

Every family and estate plan is different, but professional fiduciaries are often a good fit in the following situations:

Family Conflict or Tension

If relationships among family members are strained (or may become strained) a neutral fiduciary can significantly reduce conflict. This can help preserve relationships and avoid costly disputes or litigation.

Complex or High-Responsibility Estates

Estates involving businesses, rental properties, commercial real estate, or ongoing trusts often require skills and time that go well beyond what most people expect. A professional fiduciary brings experience and systems designed for these responsibilities.

No Clear or Willing Individual

Sometimes there is no obvious person to serve (or the "right" person simply does not want the job). Serving as a fiduciary can be time-consuming, stressful, and emotionally difficult. A professional fiduciary can step in without placing that burden on a loved one.

Concerns About Capacity or Reliability

Even well-intentioned family members may struggle with paperwork, deadlines, financial management, or conflict among beneficiaries. Choosing a professional fiduciary can provide peace of mind that details will not be overlooked.

Blended Families or Sensitive Distributions

When an estate plan involves second marriages, step-children, or unequal distributions, neutrality matters. A professional fiduciary can help ensure the plan is carried out exactly as intended, without accusations of favoritism.

Long-Term Planning for Incapacity

For long-term Powers of Attorney or trusts designed to operate over many years, a professional fiduciary can provide continuity even if circumstances change or individuals are no longer available.

What About Cost?

Professional and corporate fiduciaries charge fees, which may be hourly or based on a percentage of assets that they are managing on behalf of the estate. While cost is an important consideration, many clients find that the benefits (reduced conflict, professional administration, and peace of mind) outweigh the expense.

In Washington State, professional fiduciaries are subject to licensing and regulatory requirements, providing an added layer of accountability.

A Flexible Approach

Naming a professional fiduciary does not have to be an all-or-nothing decision. Some clients name a professional fiduciary as a backup, while others pair a family member with a professional as co-fiduciaries, balancing personal knowledge with professional oversight.

Thoughtful Planning Is About More Than Trust

Choosing a fiduciary is not about distrusting your loved ones, it is about choosing the right tool for the job. A well-designed estate plan anticipates challenges, protects loved ones, and creates clarity during difficult times.

At Limitless Law PLLC, we help clients think through these decisions carefully, with an eye toward both the legal requirements and the human realities involved.

Ready to Talk Through Your Options?

If you are creating or updating an estate plan and are unsure who should serve as your fiduciary, a thoughtful conversation now can prevent stress and conflict later. We invite you to schedule a strategy session with Limitless Law PLLC to explore your options and design a plan that truly fits your life, your family, and your goals.

Call 360-685-0145 or click here to learn more about how we can help.