Should You Choose a Professional Fiduciary or a Trusted Friend?

When you're creating an estate plan and don’t have immediate family to step in as trustee or power of attorney, a natural question comes up: “Should I ask a close friend—or hire a professional?”

At first glance, naming a longtime friend seems like the easiest and most affordable path. After all, they know you, they care about your well-being, and they may even feel honored to help. But over time, life changes. People move, relationships evolve, and handling someone else’s legal and financial affairs can become more complex than expected.

That’s where professional fiduciaries come in.

What Does a Fiduciary Do?

A fiduciary is someone legally authorized to act on your behalf when it comes to:

• Managing your finances
• Handling legal matters
• Overseeing distributions from a trust
• Making medical decisions (if also named in healthcare documents)

Whether you choose a friend or a professional, this person must act in your best interest and follow the instructions in your estate planning documents. But how they approach that role—and how reliable they are over time—can vary significantly.

The Case for a Trusted Friend

There’s no question: choosing someone you know personally offers comfort. A friend may have insight into your values and preferences. They may also be more willing to take on the role without charging a fee.

However, there are risks worth considering:

• They may feel emotionally overwhelmed
• They might lack the financial or legal knowledge needed
• They may unintentionally cause delays or missteps
• If a conflict arises among beneficiaries, your friend could be put in a difficult position

In short: good intentions aren’t always enough—especially when the role becomes complicated or long-term.

The Case for a Professional Fiduciary

Michigan is home to several trust companies and banks that serve as professional fiduciaries. These institutions:

• Offer continuity and experience
• Operate under strict legal and ethical guidelines
• Have systems in place to handle investments, distributions, and healthcare coordination
• Are impartial—minimizing family conflict or pressure
  

They also stay current on Michigan-specific regulations, tax laws, and fiduciary duties. That structure can offer peace of mind, especially for solo agers who don’t want to burden friends with major decisions.

The tradeoff? Professional fiduciaries charge a fee, and not every firm will take on smaller estates. But in many cases, the cost is well worth the stability and security they provide.

How to Decide What’s Right for You

Ask yourself:

• Will my chosen friend be willing—and able—to manage my affairs if needed?
• Do they have the time, health, and availability to serve in this role?
• Is my estate simple, or would a professional better handle the complexity?
• Do I want to avoid placing a personal relationship under pressure?
  

Often, the best plans include a mix of both: a friend for certain roles (like healthcare decisions) and a professional for financial or long-term trustee duties.

You Don’t Have to Decide Alone

At Rutkowski Law Firm, we help clients across Michigan design estate plans that balance trust, practicality, and long-term sustainability. Whether you’re naming a fiduciary for the first time or revisiting old documents, we’ll help you weigh your options and create a plan that protects both your wishes and your relationships.

Because when the time comes, you want to know that the person—or institution—you’ve chosen is ready to step in with clarity, care, and capability.