Difference between revisions of "Four Key Duties of a Fiduciary"
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To help you act honestly, in good faith and in Martina’s best interest, follow these guidelines. | To help you act honestly, in good faith and in Martina’s best interest, follow these guidelines. | ||
==Understand when the power of attorney is in effect== | ===Understand when the power of attorney is in effect=== | ||
Understand when the power of attorney starts. It may be right away or only on some “triggering event”—for example, when Martina can no longer make her own decisions (this type is called a “springing power of attorney”). Check to see if the power of attorney document says how you will know when Martina can no longer make her own decisions. | Understand when the power of attorney starts. It may be right away or only on some “triggering event”—for example, when Martina can no longer make her own decisions (this type is called a “springing power of attorney”). Check to see if the power of attorney document says how you will know when Martina can no longer make her own decisions. | ||
==Be guided by Martina’s wishes, beliefs and values== | ===Be guided by Martina’s wishes, beliefs and values=== | ||
Many things can affect your decisions about Martina’s money and property. For example, you might feel pressure from others. Martina’s abilities to make decisions might change from time to time. | Many things can affect your decisions about Martina’s money and property. For example, you might feel pressure from others. Martina’s abilities to make decisions might change from time to time. | ||
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Make the decisions you think Martina would have wanted, unless doing so would harm her. | Make the decisions you think Martina would have wanted, unless doing so would harm her. | ||
==Avoid conflicts of interest== | ===Avoid conflicts of interest=== | ||
A conflict of interest happens if you make a decision about Martina’s property that may benefit someone else at Martina’s expense. As a fiduciary, you have a strict duty to avoid conflicts of interest. You should avoid even the appearance of a conflict of interest. | A conflict of interest happens if you make a decision about Martina’s property that may benefit someone else at Martina’s expense. As a fiduciary, you have a strict duty to avoid conflicts of interest. You should avoid even the appearance of a conflict of interest. | ||
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==Don’t give or loan Martina’s money to yourself or others== | ===Don’t give or loan Martina’s money to yourself or others=== | ||
Be very careful when it comes to giving Martina’s money—or even loaning it—to yourself or others. | Be very careful when it comes to giving Martina’s money—or even loaning it—to yourself or others. | ||
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For example, let’s say Martina’s taxable income for a year is $20,000. 10% of that amount would be $2,000. That amount is smaller than $5,000. So $2,000 would be the total maximum value of all gifts and loans (of the type Martina regularly made) you could make in the following year. | For example, let’s say Martina’s taxable income for a year is $20,000. 10% of that amount would be $2,000. That amount is smaller than $5,000. So $2,000 would be the total maximum value of all gifts and loans (of the type Martina regularly made) you could make in the following year. | ||
==Don’t pay yourself unless the power of attorney allows it== | ===Don’t pay yourself unless the power of attorney allows it=== | ||
Don’t pay yourself for the time you spend acting as Martina’s attorney, unless the power of attorney allows it. [http://canlii.ca/t/849l The law] says that you can be paid for acting as an attorney '''only if''' the enduring power of attorney document says you can and sets out the amount or rate. | Don’t pay yourself for the time you spend acting as Martina’s attorney, unless the power of attorney allows it. [http://canlii.ca/t/849l The law] says that you can be paid for acting as an attorney '''only if''' the enduring power of attorney document says you can and sets out the amount or rate. | ||