Fiduciary Duty

A fiduciary is a person who has been entrusted with the care of another's property or other valuables and who has a responsibility to exercise discretionary judgment in this capacity solely in the interest of this other person's interest. Common examples of fiduciaries are trustees, guardians, executors, agents, and, in business, directors, officers, and executives of corporations. Fiduciaries provide a valuable service for individuals who are unable for some reason to exercise control over their own property or assets. Thus, a parent facing death might provide for a dependent child by creating a trust to be managed by a trustee.

A fiduciary is part of a fiduciary relationship, in which another person is the beneficiary of the fiduciary's service. Typically, the beneficiary is in a vulnerable ...