Most people facing this question are in a hard spot. A parent has died or can no longer manage, and no one in the family can step in. Sometimes no one lives close enough, no one has the time or health, or the siblings no longer trust each other to be fair. The family is asking whether a stranger can do this job, who that person answers to, and how to confirm the license before handing over the keys to a house or a bank account. Silver Lining Estate is a California website of educational estate-settlement resources, and the license lookups described below belong to the state.
What a Professional Fiduciary Is Under California Law
The licensing rules come from the Professional Fiduciaries Act, the name Cal. Bus. & Prof. Code section 6500 gives the chapter. A fiduciary is someone trusted to manage property or make decisions for another person. The Act decides when that work requires a state license.
Under Cal. Bus. & Prof. Code section 6501, a "professional fiduciary" includes a person who acts as a guardian or conservator, or as a personal representative of a decedent's estate, "for two or more individuals at the same time who are not related to the professional fiduciary or to each other." A personal representative is the person who settles a deceased person's estate. The definition also covers a person who acts as a trustee, or as an agent under a durable power of attorney for health care or for finances, "for four or more individuals, at the same time." The section counts people in a particular way. Relatives of the fiduciary are not counted. People related to each other count as one. "Related" means by blood, adoption, marriage or registered domestic partnership.
A daughter who serves as trustee of her own mother's trust does not fall within that definition. The license is for people who do this work for unrelated clients.
The section also lists who is not a professional fiduciary, including trust companies, FDIC-insured banks and their affiliates, public agencies such as a county public guardian, and certain charitable organizations. Under Cal. Bus. & Prof. Code section 6530, the licensing requirement does not apply to a licensed attorney. It does not apply to a certified public accountant acting within that profession's scope of practice. It does not apply to an enrolled agent acting within the scope of practice before the IRS. The Professional Fiduciaries Bureau's consumer guide explains that the Bureau is part of the Department of Consumer Affairs and was created in 2007.
The Roles a Licensed Professional Fiduciary Can Fill
Each role answers a different family situation. The titles are not interchangeable. The Bureau's guide describes the roles this way.
- Trustee. A trustee carries out "the terms of the trust as stated in the trust document." The person who created the trust names the trustee. If no trustee is available or named, the guide says a court may appoint one.
- Personal representative of a decedent's estate. This person handles "the administration and distribution" of an estate after a death. The guide says this person may be named in a will. It also says this person "may need to be officially appointed by a court depending on the value of the assets in the estate." An executor is the personal representative named in a will. An administrator is appointed by the court when there is no executor.
- Conservator. A conservator manages the financial and personal affairs of an adult who can no longer make safe or sound decisions. A conservator must be appointed by the court. A conservator of the estate handles money and property. A conservator of the person handles personal care.
- Guardian. A guardian manages the affairs of a minor, and the court's permission is needed to create the guardianship.
None of these roles lets a fiduciary act on whim. A trustee answers to the trust document. A personal representative, conservator or guardian answers to the court that made the appointment. Where the family disputes an appointment or questions a fiduciary's conduct, that is a contested matter, and it is handled by an attorney who litigates trust and probate cases.
How California Licenses Professional Fiduciaries
Cal. Bus. & Prof. Code section 6530 states the basic rule: "On and after January 1, 2009, no person shall act or hold themselves out to the public as a professional fiduciary unless that person is licensed." The Bureau's guide adds that courts cannot appoint an individual as a professional fiduciary for nonfamily members unless that person holds a valid license or is exempt by law.
The Act provides for a professional fiduciary examination. Cal. Bus. & Prof. Code section 6592 has the Bureau set the fees for the exam, the license and renewal, and for retired, inactive and reinstated status. The current education, experience and renewal requirements for applicants are published by the Bureau. A family can treat the Bureau, not a website summary, as the source for those details.
Cal. Bus. & Prof. Code section 6534 requires the Bureau to keep a file on each licensee. The Bureau must make four kinds of information in that file public:
- the total value of assets the licensee currently supervises;
- whether the licensee has been removed for cause, or has resigned or settled a matter after a court complaint;
- any discipline the Bureau has imposed;
- certain bankruptcies within the last 10 years.
Other information in the file, such as client names, is available to a court but otherwise kept confidential.
A trade group, the Professional Fiduciary Association of California, has its own membership. Membership in that group is a separate thing from the state license.
How to Look Up a California Professional Fiduciary License
The Bureau's page, Instructions to Search for a Licensed Professional Fiduciary, says its License Verification tool can be used to search for a specific licensee, list licensees in a geographic area, or verify a license status. The Bureau's guide adds that searches can use a fiduciary's name, license number, city or county.
Three points on that page matter most to a family:
- Status. The Bureau asks readers to confirm the license is in "active" status and not expired. It states that licensees with an expired license "are not legally permitted to operate in the State of California."
- Discipline. Any disciplinary action against a licensee is posted on that licensee's page in the "public documents" section.
- Advanced Search. For a search by specific criteria, the page says to use the Advanced Search feature, select the Professional Fiduciaries Licensing Bureau in the Board/Bureau section, and then choose the search criteria. That tool is the Department of Consumer Affairs' broader license search.
A few minutes on this lookup can settle a worried family member's question before any paperwork is signed.
When a Family Might Need a Professional Fiduciary
For many families, a relative serves as trustee or personal representative, and that works. The Bureau's guide lists reasons people choose a professional instead:
- no friends or family are available to help;
- the person wants to avoid burdening family;
- relatives lack the skills, are unwilling, or "live too far away to help";
- relatives have conflicts that make a neutral party a better choice.
Other facts can point the same way. The estate or trust may hold a rental house, a business interest or other assets that take steady management. The guide notes that a professional fiduciary may hire other professionals "at the expense of the trust or estate." It also notes that the fiduciary stays responsible for those services. In a conservatorship or a trust with no available trustee, the court itself may appoint someone.
These are circumstances, not a verdict on any one family. Whether a professional fits depends on the documents, the assets and what the court allows. A probate or trust attorney can say how those pieces fit together.
Finding a Licensed Professional Fiduciary in California
The state's License Verification tool is the authoritative check on whether a license is active. It can also list licensees by geographic area, so a family can see who is licensed near the county where the estate or trust is being handled.
The professional association's membership is voluntary. A fiduciary who is not a member may still hold a valid state license, so the Bureau's lookup remains the place to confirm a license. The Bureau's guide also suggests considering referrals from family, friends or another professional. A probate or estate planning attorney working in the county is one such source.
Before hiring, a family can ask questions like these:
- Is your license active, and what does your public record show?
- Which roles have you served in, such as trustee or personal representative?
- How are you paid, and from what funds?
- Which outside professionals do you expect to hire?
- How will you report to the beneficiaries or the court?
