Blog Post by J. Patrick Moore
Mr. Moore is the Administrator of the King City Civic Association. He has degrees in Mathematics and Ministry, and has worked in Community Association Management for over 8 years, and prior, in Ministry positions for over 12 years. Both his mother and mother-in-law live in Retirement Living facilities.

Fiduciary Duty
Many of us have seen the term, “Fiduciary Duty,” or “Fiduciary,” and may have a vague idea of what it means. This article is intended to give a general overview of the concept of fiduciary duty but, since I am not a lawyer, is not intended to offer legal advice.
Wikipedia states: “A fiduciary is someone who has undertaken to act for an on behalf of another in particular matter in circumstances that give rise to a relationship of trust and confidence.” Additionally, “A fiduciary duty is the highest standard of care at equity or law. A fiduciary is expected to be extremely loyal to the person to whom he owes the duty (the principal): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents.”
Many elderly people come to a point where they need someone to help them handle their financial affairs, or take them over completely. Essentially, someone who is given a Power of Attorney takes on a Fiduciary responsibility to the elderly person, to act out of loyalty to the person for whom they are taking that responsibility. It’s very important to be selective about who handles your financial affairs, since you effectively give them power over your assets (real estate, personal property, cash, bank accounts, investment accounts, retirement accounts, etc.). Choosing poorly could have a dramatic – and perhaps drastic – effect on your quality of life in your last years. There have been numerous stories in the news about people who literally lost a fortune when trusting the wrong person.
Generally, many people will look to family members first. If your family members are good, honest, upright people, that has the potential to work out great! However, not all family members are created equal. Just as you might think twice about hiring someone with their own money problems to run a cash register in a store, think twice if you have a relative who has not handled money responsibly in their own life – do you really want that person handling your financial affairs?
The same goes with your acquaintances. A neighbor or person from church who hasn’t done well handling money in the past, won’t be the right person for you. Know that there are some con artists who get involved in groups – some in clubs, others in churches – and commit financial fraud (Bernie Madoff is a great example of someone who came highly recommended from friends, but was not trustworthy).
Sometimes, it can work well to hire a professional – a lawyer or CPA – to handle your affairs, but know that they will charge you fees for their services, and they are not cheap! If you can easily afford their hourly rates, a lawyer or CPA may be just the person you are looking for; be sure to ask how much the fees are, up front.
Transparency is a popular buzz-word in some circles. Essentially, it means that nothing his hidden from sight. If you don’t have family close by, having someone locally who handles your affairs can be a good arrangement, particularly if there is transparency in the way that your affairs are handled – with a monthly reporting of financial condition, and the bank statements being delivered directly to a trusted family member, or having a family member who has internet access to your account, so that the can download the statements directly. Many banks allow access to images of checks that have cleared, which can allow another layer of transparency.
If and when all else fails in finding someone to handle your finances, check with your local city or county services, as they may offer a service through one of their departments; or they may be able to refer you to an agency that can assist you.
Remember, handling your financial affairs is very similar to hiring someone to manage a company. Be careful to choose well, and try to put safeguards in place to ensure your financial safety.
J. Patrick Moore, CMCA
Administrator
King City Civic Association
15245 SW 116th Ave.
King City, OR 97224
503.639.6565 Phone
503.639.8815 Fax
http://www.kingcityowners.com/