At Robins Kaplan’s annual Fiduciary and Wealth Disputes Seminar “What Keeps Fiduciaries Up At Night?” attendees heard from John Taft, Vice Chair at Baird and a 40-year veteran of the financial services industry. A former CEO of RBC Wealth Management–U.S. and past Chair of the Securities Industry and Financial Markets Association (SIFMA), Taft’s keynote address, “Stewardship in Times of Uncertainty,” explored the moral and civic foundations of fiduciary duties—connecting his family’s multigenerational legacy of public service to the modern challenges facing finance, business, and society. Taft described those foundations using the concept of stewardship—service, responsibility, and community-minded leadership. In uncertain times, stewardship is not optional. It is essential. Whether in finance, law, business, or government, leaders must remember that their purpose is to serve others and to safeguard the systems that allow society to thrive.
In keeping with the theme of stewardship, Karin Ciano (Senior Assistant Director, Office of Lawyers Professional Responsibility) and Nicole Frank (Senior Counsel, Bradford Andresen Norrie & Camarotto), explored how professional standards intersect with real-world pressures—and how fiduciaries can stay steady when the boundaries of duty, judgment, and ethics begin to blur. The presentation addressed some of the ethical and practical challenges fiduciaries can face in a modern context.
Communication and the Expectation Gap
Few things create sleepless nights faster than miscommunication. Fiduciaries are expected to be responsive and transparent, yet modern technology has made “constant availability” the new norm. Ciano and Frank encouraged fiduciaries to set expectations early, outlining in writing how and when they will respond, what qualifies as urgent, and how decisions will be communicated.
Establishing those parameters not only protects fiduciaries from burnout but also provides clarity for beneficiaries who might otherwise feel left in the dark.
When Co-Fiduciaries Collide
Working with co-fiduciaries can offer balance and shared responsibility, but it can also open the door to confusion and conflict. A proactive governance structure, such as regular meetings, clear documentation, and defined decision-making protocols, can prevent disagreements from escalating.
The message was simple: If fiduciaries don’t define their working relationship at the start, the conflict will define it for them later.
Mediation, Delegation, and Diminishing Returns
Disputes often arise over communication, transparency, or investment judgment. Mediation can be an effective option, but Ciano and Frank cautioned against endless attempts to reconcile differences when outcomes remain unchanged. Each round of mediation consumes time, emotional energy, and estate assets. Fiduciaries must weigh whether ongoing negotiation truly serves beneficiaries or merely prolongs dysfunction.
Delegation was another key theme. While fiduciaries can and should rely on professional counsel, they cannot outsource accountability. Whether it is a financial advisor, attorney, or property manager, ultimate responsibility rests with the fiduciary.
Dual Roles and the Importance of Separation
Serving as both fiduciary and legal counsel can seem efficient, particularly for smaller estates, but the practice carries inherent risks. If undertaken, the two functions must remain separated, both substantively and financially. Billing rates, documentation, and decision-making processes must clarify when a person is acting as a lawyer versus when they are acting as a fiduciary.
Even when such dual roles are chosen by a client for reasons of trust or convenience, transparency is critical to maintaining credibility and avoiding claims of self-dealing.
Recognizing Ethical Red Flags
When does questionable behavior cross into misconduct? The answer often lies in context and transparency. Fiduciaries should be able to explain every decision in terms that would make sense to an objective observer. If a transaction or relationship cannot withstand that scrutiny—or if it benefits a friend, family member, or the fiduciary personally—it may be time to pause and reassess. Writing down observations, consulting trusted colleagues, or seeking confidential ethics guidance can help clarify next steps before a potential problem becomes a professional one.
Elder Abuse and the Fiduciary’s Role
With housing instability and financial stress on the rise, elder exploitation has become an increasing concern. Fiduciaries are often the first to notice warning signs: isolation, unexplained financial shifts, or sudden changes in estate planning. While lawyers’ reporting obligations may differ from those of other fiduciaries, all share a moral and professional responsibility to stay alert and avoid facilitating abuse—directly or indirectly.
Privilege, Confidentiality, and Transparency
The session closed with a reminder that confidentiality and privilege are not interchangeable. Attorney-client privilege protects communication between lawyer and client, not between fiduciaries and beneficiaries. When multiple fiduciaries are involved, there can be no secrets among them. Clarity around what can and cannot be shared helps avoid confusion, protects privilege where it applies, and ensures transparency where it is owed.
The Takeaway: Transparency, Documentation, and Ethical Instinct
Transparency and documentation are a fiduciary’s best tools for maintaining trust. Every major decision should be explainable, traceable, and defensible in hindsight.
Equally important is the role of intuition. Ethical discomfort is often the first sign that something deserves closer scrutiny. Fiduciaries who take that instinct seriously and act before small issues grow into larger problems fulfill not just their legal duties but the deeper ethical promise at the heart of fiduciary service and the core concept of stewardship.
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