Melodie Scott strongly believes that Professional Fiduciaries are necessary in specific situations. Melodie Scott is a fiduciary specialist based in the California area. As a fiduciary, she has a legal responsibility in managing money for individuals. She believes there are two scenarios in which it is important to use a Professional Fiduciary.
When an individual has planned poorly (or not at all) for an important financial or medical decision, it is important to consider using a Professional Fiduciary. Additionally, they can still be used if you are in the opposite situation where you have made good decisions regarding estate and other personal financial decisions. It is important to execute a well prepared Power of Attorney for financial services, a Health Care Advance Directive, adding a trusted signer to your accounts, and naming a trustee or conservator. This will help to keep your personal issues out of a courtroom. A Professional Fiduciary can serve in these capacities, which can keep the strain off of family members and friends.
Melodie Scott says that it is important to remember that in California, all Professional Fiduciaries can be subject to supervision by the court. Failure to designate an individual you trust can lead to expensive squabbles between family members, so make sure to plan ahead.
They will help you with your monetary decision by managing an important investment process. They must have some kind of outline for how they will accomplish this goal.
- First Step: Organization. Melodie Scott says that your fiduciary will first organize what rules and laws will apply to the current situation at hand. Your fiduciary must do research to determine what those rules and laws consist of.
- Second Step: Formalization. Your fiduciary will then use the information they have researched in order to put a plan together. Melodie Scott says this plan will involve how the funds will be used. The fiduciary will create a program to manage the funds in the best possible way.
- Third Step: Implementation. Melodie Scott says that this is the stage where your fiduciary will put the plan he or she has created into action. Your fiduciary will select specific investments or investment managers to fulfill the roles that have been detailed in the plan
- Fourth Step: Monitoring. Melodie Scott says this is the point where your fiduciary will monitor reports which compare the performance of the investment to others. Your fiduciary will also review any expenses that have incurred during the plan’s implementation.