The CFPB published a series of guides on Tuesday that are designed to help individuals caring for a family or community member to understand and carry out their fiduciary responsibilities.
“Fiduciaries are generally expected to act in the other person’s best interest, manage their finances carefully, keep those finances separate from their own, and maintain good records,” CFPB Director Richard Cordray said. “Today we are publishing guides for people in four specific fiduciary capacities.”
The guides, which were crafted by the American Bar Association Commission on Law and Aging under contract with the CPFB, are aimed at powers of attorney, appointed guardians or conservators, trustees and government benefit management appointees.
“Our guides are designed to walk these caregivers through their financial duties and provide practical tips, like explaining common consumer scams. Unfortunately, all too often we have seen seniors fall victim to fraud or financial exploitation… People whose decision-making capacity has diminished are especially vulnerable to scams and exploitation. So the guides advise their fiduciaries about warning signs, such as changes in spending habits, which may indicate financial exploitation and explain what to do if the person in their care is a victim.”
Key information from the guides is available on the CFPB’s Ask CFPB tool on the agency website.