Fiduciary

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Related to Fiduciary duties: Fiduciary relationship

Fiduciary

One who must act for the benefit of another party.

Fiduciary

1. A person appointed to handle another person's finances. A fiduciary holds the assets of another person and is required to act in the best interests of that person; he/she is not allowed to invest for personal profit. See also: Prudent person rule.

2. Describing a duty or obligation to act in the best interest of another person or institution. For example, an elected government might state that it has a fiduciary duty to wisely use the taxes it collects.

3. An unsecured loan.

fiduciary

A person, such as an investment manager or the executor of an estate, or an organization, such as a bank, entrusted with the property of another party and in whose best interests the fiduciary is expected to act when holding, investing, or otherwise using that party's property.

Fiduciary.

A fiduciary is an individual or organization legally responsible for managing assets on behalf of someone else, usually called the beneficiary. The assets must be managed in the best interests of the beneficiary, not for the personal gain of the fiduciary.

However, the concept of acting responsibly can be broadly interpreted, and may mean preserving principal to some fiduciaries and producing reasonable growth to others.

Executors, trustees, guardians, and agents with powers of attorney are examples of individuals with fiduciary responsibility. Firms known as registered investment advisers (RIAs) are also fiduciaries.

fiduciary

A person who enjoys a relationship of trust or confidence with respect to another such that the law will impose greater than normal responsibilities on the fiduciary for honesty, integrity,candor,and scrupulous good faith even if it means sacrificing the interests of the fiduciary. Typical fiduciaries include attorneys, real estate agents representing principals, trustees, and guardians. Because of the fiduciary relationship between an agent and principal, it is difficult to understand the concept of dual agency, in which the broker may represent both the buyer and seller.A seller's fiduciary must keep all the client's information confidential,not volunteer anything unless absolutely required by law, and attempt to gain the highest possible price for the property. A buyer's fiduciary must ferret out all secrets, volunteer all information regarding anything at all that might affect property values, recommend the most thorough home inspectors, and attempt to obtain the lowest possible price for a property. These positions are extremely difficult to reconcile in one person.

Fiduciary

One who acts for an estate or trust to manage the property of the estate or trust.
References in periodicals archive ?
If your client's goal is to limit exposure to a potential claim for breach of fiduciary duties, then formation of a Delaware LLC with an operating agreement that includes exculpatory language may be an alternative to consider.
Directors and officers are able to: (1) prospectively limit the ability of parties to bring claims for breaches of fiduciary duties through exculpation provisions in corporate formation documents; (2) act in a manner to reduce or eliminate the likelihood that breaches of fiduciary duties occur; (3) contract with other parties to satisfy claims for breaches of fiduciary duties through indemnification agreements and director and officer liability insurance; and (4) negotiate for agreements to release them from liability.
Surprisingly, given their importance, we know relatively little about the justification for fiduciary duties.
In lawsuits we often see fiduciary duties referred to as a "heightened duty of care," but that isn't exactly so.
While the California Real Estate Broker Law included some fiduciary-type duties for licensees, the new statute extended additional fiduciary duties to them as well as to "licensed persons" under other California laws.
11) However, the Court's analysis also has important implications for the interpretation of directors' and officers' statutory fiduciary duties under the CBCA, which will be the focus of this comment.
24) They observe that fiduciary duties between shareholders in a closely held corporation are necessary "because while a closely held corporation embodies the corporate form, it in many ways resembles a partnership.
The private business entity contract can be seen as operating within a framework of mandatory fiduciary duties that may be modified, but not wholly eliminated, and that are enforced through active judicial intervention.
Although these efforts to reinforce fiduciary duties by removing conflicts of interest and restoring objectivity may produce some improvements, they do not address the most important challenge posed by the recent scandals.