How to Avoid Hiring a Private Fiduciary: Smart Strategies to Limit Estate Representative Powers and Preserve Your Family’s Wealth
Published January 12, 2026 | Original Source: CEB Articles
Who This Guide Is For
If you’re a parent with minor children planning your estate, you face a unique challenge: How do you ensure your children’s inheritance is protected if disagreements arise among your chosen representatives or beneficiaries? This guide shows you practical, court-approved methods to avoid costly private fiduciaries while maintaining family harmony and protecting your estate assets.
The Problem: When Family Disagreements Lead to Expensive Solutions
When heirs or beneficiaries distrust each other or question who should manage an estate, attorneys often recommend hiring a private fiduciary—a neutral third party who manages the estate. While this solves the trust problem, it comes with significant costs that reduce what your children ultimately receive.
However, California probate law offers a better solution: strategically limiting your personal representative’s powers to address specific concerns without the expense of a private fiduciary.
Understanding Your Options: Three Levels of Estate Representative Authority
Under California’s Independent Administration of Estates Act (IAEA), personal representatives can operate with three different levels of authority:
1. Full IAEA Authority (The Default Option)
This is the standard authorization unless your will specifically prohibits it. With full authority, your representative can handle most estate tasks independently, but must still get court approval for:
2. Limited IAEA Authority (The Middle Ground)
This option requires court supervision specifically for real estate transactions, including:
3. No IAEA Authority (Maximum Court Oversight)
This provides the most restrictions, requiring court approval for investments, withdrawals of funds, and property sales—essentially preventing any significant action without judicial review.
Real-World Solutions: How California Families Avoid Private Fiduciaries
Scenario 1: Protecting a Rental Property During Estate Administration
Consider this common situation: Your estate includes a rental home that will eventually go to one group of beneficiaries, while other assets go to your children. The property needs ongoing maintenance, but beneficiaries worry the executor might make decisions favoring one side—either installing expensive upgrades or choosing the cheapest possible repairs.
The Solution: Request the court to require your executor to obtain approval (via Notice of Proposed Action) before making non-emergency repairs, alterations, or modifications to the property. This gives all beneficiaries visibility and input without the ongoing cost of a private fiduciary.
Scenario 2: Preventing Insider Real Estate Deals
If you’re concerned that your chosen representative might have conflicts of interest in real estate transactions—perhaps they work in the industry and could manipulate sales—you can request limited IAEA authority. This requires court confirmation of any property sale, including the possibility of competitive overbids at the confirmation hearing.
Why These Strategies Work for Parents Planning Estates
These targeted restrictions accomplish several goals critical for parents with minor children:
Key Takeaways for Estate Planning
Protect Your Children’s Future with Expert Estate Planning
Creating an estate plan that balances protection, cost-efficiency, and family harmony requires experienced legal guidance. At California Probate & Trust, our certified estate planning specialists have helped thousands of California families design customized plans that protect their children and preserve their wealth for generations.
Don’t leave your children’s financial security to chance or let family disagreements erode their inheritance. Schedule your free consultation today to discuss:
Schedule Your Free Estate Planning Consultation at CPT.Law
California Probate & Trust serves families throughout Sacramento, Fair Oaks, and San Francisco with compassionate, expert estate planning services. Call (866) 674-1130 or visit cpt.law to get started.