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California Professional Fiduciary License Exam
COMPLETE VERIFIED QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE.pdf
Indirect conflict of interest - Answer-Typically includes
professionals by which the fiduciary hires with interests, or
has clients with interests, in conflict of the client's interest.
This can be waived if all involved parties agree.
What are several practices to reduce conflict of interest? -
Answer-Having attorney's review operative documents,
listing closely held business and investment interests, and
maintaining a client and beneficiary database.
How may an attorney be a conflict of interest? - Answer-By
witnessing how the trust is administered, representing a
family member of the client, or be witness to how the
assets were managed.
Duty of Loyalty - Answer-A fiduciary duty owed by an
agent not to act adversely to the interests of the principal
Conflict of interest - Answer-A conflict between self-
interest and professional obligation
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Personal conflict of interest - Answer-Having a personal
stake with the client (i.e. Sharing assets)
Direct conflict of interest - Answer-Having services in
direct conflict of interests to client or proposed client (i.e.
representing two different trusts competing for similar
assets)
How may a client be a conflict of interest? - Answer-By
having a privacy issue, disclosed confidential information,
and committing loyalty to them over beneficiaries or
estates over them (a fiduciary should always remain
neutral and fair to all parties).
Should a fiduciary do what a client wants or what is in their
best interest? - Answer-A fiduciary should commit to
decisions for what is in the client's best interest.
When in doubt, what should the fiduciary do when
uncertain if an action is legal/to code? - Answer-The
fiduciary should seek court approval.
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Who should the fiduciary be loyal to: the beneficiaries, the
estate, or to the client? - Answer-None of them. The
fiduciary should treat everyone equally and remain neutral.
In basic line of work, where complex issues arise in a
conservatorship, in a trust or estate, what should a
fiduciary do? - Answer-Hire professionals to assist,
ascertain what documents are available for trusts (i.e. for
taxes, asset marshaling, etc.), and making sure to have a
starting point.
What is important in understanding a client? - Answer-
Understand the client's background, where they are
coming from.
Under general principles of California's code of ethics, part
(b)-- - Answer-The fiduciary shall obey all local, state, and
federal laws, regulations, and requirements by the courts.
Under general principles of California's code of ethics, part
(a)-- - Answer-The fiduciary shall maintain relations (as
appropriate) with a conservatee, ward, principal, and
beneficiary as appropriate to appointment.
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As general rule, regarding decision making capacity of the
client-- - Answer-The fiduciary shall allow reasonable
opportunity for the client to exercise his or her own
choices as they are capable of.
When making decisions on behalf of the client-- - Answer-
The fiduciary shall take into consideration all known
ethnic, religious, social, and cultural values of the
consumer.
Regarding a client's personal issue(s)-- - Answer-The
fiduciary shall keep issues personal and follow state law in
disclosing said information and/or refuse disclosure if it
means harm to the person.
Substituted judgement - Answer-A form of surrogate
decision making where the surrogate attempts to make
decisions (for the client) based on his/her preferences or
choices.
Best interest - Answer-A decision based off of what the
"Reasonable Person" would do. It requires the least
amount of involvement.
California Professional Fiduciary License Exam
COMPLETE VERIFIED QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE.pdf
Indirect conflict of interest - Answer-Typically includes
professionals by which the fiduciary hires with interests, or
has clients with interests, in conflict of the client's interest.
This can be waived if all involved parties agree.
What are several practices to reduce conflict of interest? -
Answer-Having attorney's review operative documents,
listing closely held business and investment interests, and
maintaining a client and beneficiary database.
How may an attorney be a conflict of interest? - Answer-By
witnessing how the trust is administered, representing a
family member of the client, or be witness to how the
assets were managed.
Duty of Loyalty - Answer-A fiduciary duty owed by an
agent not to act adversely to the interests of the principal
Conflict of interest - Answer-A conflict between self-
interest and professional obligation
,2|Page
Personal conflict of interest - Answer-Having a personal
stake with the client (i.e. Sharing assets)
Direct conflict of interest - Answer-Having services in
direct conflict of interests to client or proposed client (i.e.
representing two different trusts competing for similar
assets)
How may a client be a conflict of interest? - Answer-By
having a privacy issue, disclosed confidential information,
and committing loyalty to them over beneficiaries or
estates over them (a fiduciary should always remain
neutral and fair to all parties).
Should a fiduciary do what a client wants or what is in their
best interest? - Answer-A fiduciary should commit to
decisions for what is in the client's best interest.
When in doubt, what should the fiduciary do when
uncertain if an action is legal/to code? - Answer-The
fiduciary should seek court approval.
,3|Page
Who should the fiduciary be loyal to: the beneficiaries, the
estate, or to the client? - Answer-None of them. The
fiduciary should treat everyone equally and remain neutral.
In basic line of work, where complex issues arise in a
conservatorship, in a trust or estate, what should a
fiduciary do? - Answer-Hire professionals to assist,
ascertain what documents are available for trusts (i.e. for
taxes, asset marshaling, etc.), and making sure to have a
starting point.
What is important in understanding a client? - Answer-
Understand the client's background, where they are
coming from.
Under general principles of California's code of ethics, part
(b)-- - Answer-The fiduciary shall obey all local, state, and
federal laws, regulations, and requirements by the courts.
Under general principles of California's code of ethics, part
(a)-- - Answer-The fiduciary shall maintain relations (as
appropriate) with a conservatee, ward, principal, and
beneficiary as appropriate to appointment.
, 4|Page
As general rule, regarding decision making capacity of the
client-- - Answer-The fiduciary shall allow reasonable
opportunity for the client to exercise his or her own
choices as they are capable of.
When making decisions on behalf of the client-- - Answer-
The fiduciary shall take into consideration all known
ethnic, religious, social, and cultural values of the
consumer.
Regarding a client's personal issue(s)-- - Answer-The
fiduciary shall keep issues personal and follow state law in
disclosing said information and/or refuse disclosure if it
means harm to the person.
Substituted judgement - Answer-A form of surrogate
decision making where the surrogate attempts to make
decisions (for the client) based on his/her preferences or
choices.
Best interest - Answer-A decision based off of what the
"Reasonable Person" would do. It requires the least
amount of involvement.
