Fiduciary

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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 ?
Plan fiduciaries must reduce the risk associated with Department of Labor (DOL) investigations and plan participant fiduciary breach claims.
Many plan fiduciaries are increasingly retaining fiduciary advisors that specialize in ERISA risk management services.
It does this by rooting the broad understanding outlined earlier in means and methodologies intended to provide substance to the fiduciary theory espoused, as explained through the principles applied to both fiduciaries and beneficiaries.
The overriding principle of the fiduciary concept is that fiduciaries must act in the best interests of their beneficiaries.
In IB 16-01, the DOL takes the position that fiduciaries should consider whether the plan's vote, either alone or together with votes of other shareholders, is expected to affect the value of the plan's investment vs.
In speaking of fiduciary service, we do not mean to imply that provision of services in the colloquial sense is always or even ordinarily fiduciary, much less that all fiduciaries in conventional fiduciary relationships are engaged in the provision of services so understood.
Taking the public trust seriously by treating officials as fiduciaries, they promise, will prevent the polity's "decay into corruption, cronyism, factionalism, capriciousness, and waste.
Also not everyone has the legal possibility to become fiduciary, but the two categories enumerated in a limitative matter by the law (financial institutions, lawyers and public notaries), and there is a patrimonial division between the personal patrimony of the fiduciaries and the fiduciary patrimony.
12) Similarly, trustees may not be considered fiduciaries where the plan instrument "does not accord the trustees any discretionary authority over investment decisions" of the plan and the plan does not name the trustees as fiduciaries.
In recent years more employees and former employees have filed lawsuits alleging the plan fiduciaries breached their duty under ERISA by offering employer securities in the plan, failing to diversify plan assets, calculating benefits incorrectly, wrongfully terminating a plan, or failing to disclose revenue-sharing arrangements and excessive fees.
But the case for thinking of friends as fiduciaries is exceedingly persuasive and underappreciated, both in the law and in our lives.