- CFPB Releases Guide for “Managing Someone Else’s Money”
- November 6, 2013 | Authors: Robert E. Bostrom; Peter L. Cockrell; Brett M. Kitt; Gil Rudolph; J. Scott Sheehan
- Law Firms: Greenberg Traurig, LLP - New York Office ; Greenberg Traurig, LLP - McLean Office ; Greenberg Traurig, LLP - Washington Office ; Greenberg Traurig, LLP - Houston Office
On October 29th, the CFPB’s Office of Older Americans published a series of four guidance booklets to help financial caregivers understand how to fulfill their responsibilities, how to avoid scams and financial exploitation, and where to go for help.1
Each of the four booklets is tailored to persons acting in one of four different fiduciary capacities. The first applies to persons who have been granted powers of attorney to manage the finances and property of others. The second applies to persons appointed by courts to be guardians or conservators of property. The third is for persons named as trustees under revocable living trusts to manage money and property placed in such trusts. And the fourth is for those who have been appointed by government agencies to manage the use of government benefit payments, such as Social Security and Veterans Affairs checks, on behalf of the payees.
All of the booklets advise fiduciaries to fulfill four basic duties:
- Act in the person’s best interest;
- Manage money and property carefully;
- Keep money and property separate from the fiduciary’s own money and property; and
- Keep good records.
1 The booklets are available at http://www.consumerfinance.gov/blog/managing-someone-elses-money/.