What a licensed professional fiduciary does in California, when a family should bring one in, and how the role works when the largest asset in the estate is a house.
What is a professional fiduciary in California?
A professional fiduciary is someone licensed by the State of California to hold a position of trust for another person: trustee, conservator, guardian, personal representative of an estate, or agent under a power of attorney. The role is licensed by the Professional Fiduciaries Bureau inside the Department of Consumer Affairs, under the Professional Fiduciaries Act at Business and Professions Code section 6500 and following.
This episode of the Aragone and Advisors podcast is a conversation with Diana Meinhold, owner of Anchor Fiduciaries. It runs about twenty seven minutes and covers what the role actually involves day to day, which is a good deal less dramatic and a good deal more administrative than most families expect.
What the licence actually means
California regulates this. A licensed professional fiduciary has to meet education and examination requirements, complete continuing education, and file annual statements with the Bureau.
The practical consequence for a family is that there is a public record to check and a body to complain to. Neither exists when a relative is serving as trustee. That is not an argument against a family trustee, but it is the difference a family should weigh honestly.
Check the licence before you engage anyone. The Bureau publishes a lookup with licence number, status and any disciplinary history, the same way you would check a contractor or a broker.
When a family should consider one
- The person named in the trust has died, declined, or cannot serve
- The beneficiaries are in conflict and any family member who serves will be accused of favouring one side
- The estate is complex enough that an untrained trustee is carrying real personal exposure
- Someone needs a conservator and there is no appropriate family member
- The trustee lives out of state while the property, the tenants and the court are all here in Orange County
Where the role meets a property sale
Most of the trust estates we work on hold one asset that dominates the rest, and it is the house.
A professional fiduciary selling that house carries the same duties any trustee carries, and the same need for a record: more than one opinion of value, an honest account of condition, the options considered, and a written note of why the chosen path was chosen.
What changes is who is exposed. A professional fiduciary does this for a living, is licensed for it, and is used to being asked to justify a decision years later. A family member serving for the first time usually is not, and that gap is where most of the damage happens.
It is worth being clear about what it does not solve. The fee comes out of the estate, which means it comes out of what the beneficiaries receive. It does not make a badly drafted trust well drafted, it does not stop a determined beneficiary from litigating, and it does not make the administration quick. It moves the work and the exposure to somebody trained to carry them, which is worth a great deal in the right situation and an unnecessary cost in the wrong one.
The house is usually the reason this decision matters
If you are weighing whether an estate needs a professional fiduciary, and the largest asset in it is a house here, that is a conversation worth having first. Paula Aragone is one of the few CPRES certified agents in Orange County and works alongside fiduciaries and probate attorneys every week.
Before anyone is appointed
Paula works alongside fiduciaries and probate attorneys every week, and the house is usually the asset that decides how the administration goes.
Frequently asked questions
When would a family bring in a professional fiduciary?
Most often when there is nobody suitable to serve, when the named person cannot take it on, when the family is in conflict, or when the estate is complex enough that an untrained trustee is exposed. A professional fiduciary is also appointed by the court when no appropriate private party is available.
Does appointing one take control away from the family?
It moves the administration to a neutral party, which is usually the point. Beneficiaries keep their rights to information and to an accounting, and the fiduciary answers for the decisions. Families in conflict often find the arguments have less to grip when the person holding the title is not one of the siblings.
How do I check that a fiduciary is licensed?
The Professional Fiduciaries Bureau publishes a licence lookup. Check the licence number, the status and any disciplinary history before you engage anyone.
Does Aragone & Associates get paid for an introduction?
No, in either direction. Nobody pays to be mentioned on this site, and we do not accept a fee from a professional for making an introduction. You engage whichever professional you choose directly, on their terms, and the arrangement is between you and them.
Keep reading
- Which professional you need
- The successor trustee guide
- For attorneys and fiduciaries
- The full trust series
Stay Connected
New posts on Orange County trust and probate real estate land every week. Subscribe to the blog or listen to the podcast on Spotify. You can also follow along on Instagram, Facebook, LinkedIn and YouTube.
Paula Aragone, CPRES, SRES, DRE #01364746, Aragone & Associates at First Team Real Estate, 4 Corporate Plaza Dr #100, Newport Beach, CA 92660. Telephone (949) 415-4784.
This article is general information about California trust administration and is not legal, tax or financial advice. Nobody pays to be mentioned on this site and no fee is accepted for an introduction. Verify any licence with the issuing body before you engage anyone, and confirm your own situation with your attorney or your accountant.
Tags: professional fiduciary, licensed fiduciary California, successor trustee, trust administration, conservatorship, trust property sale, Orange County trust real estate
About Paula Aragone
Paula Aragone is the founder of Aragone & Associates, a real estate firm in Newport Beach, California specializing in probate, trust, divorce, luxury and senior downsizing transactions. With 23+ years of experience, 900+ closed transactions, $900M+ in sales and five professional designations including CPRES and SRES, Paula brings legal precision and market mastery to every deal.
The house is usually the asset that decides how the administration goes.
Ten minutes on the phone is usually enough to tell you whether the estate needs a professional fiduciary at all.