Fiduciary is a term we use within the legal realm to describe the type of relationship between two parties.
The fiduciary owes a duty (or responsibility) to the other person in the relationship. Basically, the fiduciary acts primarily for the benefit of another. Under the law, this fiduciary duty is the highest standard of care.
The following people could be considered a fiduciary:
- A Trustee appointed in a trust is one example. Technically, the trustee becomes the owner of the property in the estate. The beneficiary/ies retains no legal title to the assets in the trust. However, the trustee has the duty to make decisions in the best interest of the beneficiary/ies.
- An Executor appointed in a Will is another example of a fiduciary. Again, this person is required to do what is best for the estate and avoid a situation where a conflict of interest could arise.
- An Administrator appointed by the Court when there is no Will is also considered a fiduciary.
- A Guardian appointed in a Will or by the Court, is another example of a Fiduciary. This person is required to do what is in the best interest of the minor child or incapacitated person.
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