Since you have been named to manage money or property for someone else, you are a fiduciary. Texas law calls your relationship a fiduciary relationship. As Martin’s fiduciary, you owe him a high duty of good faith, fair dealing, honest performance, and strict accountability. The law requires you to manage Martin’s money and property for his benefit, not yours. It does not matter if you are managing a lot of money or a little. It does not matter if you are a family member or not.
The role of a fiduciary carries with it legal responsibilities. When you act as a fiduciary for Martin, you have four basic duties that you must keep in mind:
1. Act only in Martin’s best interest.
2. Manage Martin’s money and property carefully.
3. Keep Martin’s money and property separate from yours.
4. Keep good records and communicate your actions.
As a fiduciary, you must be diligent, trustworthy, honest, and act in good faith. If you do not meet these standards, you could be removed as a guardian, sued, or have to repay money. It is even possible that the police or sheriff could investigate you and you could go to jail. That’s why it’s always important to remember: It’s not your money!
Different types of fiduciaries exist.
In your role as guardian of the estate, you may act as or deal with other types of fiduciaries.
These may include:
Trustees under a revocable trust: Someone names them to manage money and property.
Representative payees or, for veterans, VA fiduciaries: A government agency names them to manage government money that is paid to someone, like Social Security or VA benefits.
Agents under a power of attorney: Someone names an agent to manage their money and property in case they are not able to do it.
Supporter under a supported decision-making agreement: Someone names them to help make decisions regarding money and property.
For other guides explaining the duties of these fiduciaries, visit our homepage: protecttheirmoneytx.org.