Fiduciary

Definition

A Fiduciary is a person in a relationship or position of trust, acting as a trusted overseer.

Purpose

The purpose of a Fiduciary is to manage assets, make decisions, or oversee activities in the best interest of another party, ensuring honesty, integrity, and loyalty in their duties.

Examples of Use

• Trustees: Managing a trust on behalf of beneficiaries.
• Executors: Administering the estate of a deceased person.
• Financial Advisors: Handling investments and financial planning with a fiduciary responsibility to clients.

Related Terms

• Trustee: A person or firm that holds and administers property or assets for the benefit of a third party.
• Beneficiary: A person who benefits from the actions of a fiduciary.
• Ethics: Moral principles that govern a person's behavior or conducting of an activity.

Notes

• Fiduciaries are legally obligated to act in the best interests of the parties they represent.
• Breach of fiduciary duty can result in legal consequences, including compensation for damages.