Fiduciary Services and why it is important

Although personal fiduciary services are a vital part of everyone’s financial portfolio, it is often a sensitive topic  that people would rather avoid. But ensuring that your loved ones are cared for after you pass away is a critical component of a comprehensive estate plan.  The confusion, uncertainty, and negative financial implications of dying intestate may be more severe for your loved ones than had you taken time to plan their financial future while you are still alive.

Personal fiduciary services may be as simple as ensuring that your last will and testament is adequately structured to cater to the needs of your family. This may include the distribution of cash, assets, company ownership, and individual inheritance clauses. Updating these documents when circumstances change is also important – specifically in cases where there are divorces, second marriages, or children from multiple relationships involved.

In this article, we at Efficient Wealth explain what fiduciary services are and why they are so important.

What Are Personal Fiduciary Services?

The term “fiduciary services” derives from the Latin word “fiducia”, meaning “trust”. It indicates that a person or organisation has undertaken to act on behalf of another in a chosen matter that gives rise to a relationship of trust, confidence, courage, or security under a pledge or guarantee.

Drawing up an updated will is the first step in providing adequate fiduciary services for one’s family. The next is to appoint an executor. Many people choose a trusted friend or family member to provide this service. However, this may not be the best solution. There are strict protocols that an executor needs to follow, which are laid out in the Administration of Estate Act. The appointed executor must demonstrate to the Master of the High Court that they have complied with all the legal requirements.


Why Are Fiduciary Services Important?

Your comprehensive estate plan needs to cover several legal factors, including ensuring that there are sufficient funds to cover taxes, estate duties, funeral expenses, and cash bequests and there should be sufficient left over to cover all debts. Provision might have to be taken into account for assisting a surviving spouse or partner and minor children. This may require the setting up of a testamentary trust and succession planning.

Although it can be a simple process, there are these and many other factors that need to be considered when appointing an executor. A sense of responsibility and command should be observed before and after the event to set minds at ease and execute a seamless transition according to one’s final wishes. Succession planning and the division of cash and other assets may sometimes begin while the provider is still alive so that supervision is undertaken throughout the process.


Who to Trust With Personal Financial Planning

Our renowned, trusted financial experts at Efficient Wealth have acted on behalf of many clients to effectively deal with fiduciary services. Our Board of Executors provides you with access to extensive expertise and capabilities in trust and executorships services.

Our services in this area of financial planning include a comprehensive offering, from estate and succession planning to independent trustee services. Allow us to revisit your financial profile and, following a complete assessment of your financial health, we will plan a financial future for you that meets your goals, aspirations, and needs. Contact us today to ensure you leave a legacy your loved ones deserve.