Fiduciary

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Related to fiduciary duty: Fiduciary Responsibility

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 ?
At the core lies the cardinal fiduciary duty of loyalty.
Another caveat: The existence of a limited fiduciary duty does not necessarily extend to everything the agent does.
The law of fiduciary duty can be divided into the following general categories: 1) express fiduciary duty imposed by statute; 2) fiduciary duty based on an agency relationship; and 3) fiduciary duty based on the special relationship of the parties (e.
Illinois and Massachusetts courts have held that shareholders of closely held corporations owe a fiduciary duty to one another analogous to the fiduciary duties partners owe one another.
So, the other side of the fiduciary duty coin is your emotions.
Similar violation: Not defined, but it is likely to encompass a definition that extends beyond a breach of fiduciary duty or a violation of securities law.
Similarly, a California court, stating that a corporate controller-dominator is treated the same as a director of an insolvent corporation -- and, therefore, has a fiduciary relationship to its creditors -- determined that when the defendant paid himself instead of making funds available for creditors, he violated his fiduciary duty to creditors (Commons v.
In a seven-page ruling, however, Breckenridge said Disney failed in its fiduciary duty to treat Katzenberg fairly in business matters, and the judge ordered the company to pay interest on the yet-to-be-determined bonus.
Directors and officers have a fiduciary duty to act in the interest of the organization.
The current board of managers of the condominium, elected by the unit owners, instituted a lawsuit against the sponsor-designated members personally, for damages to the condominium resulting from alleged breach of their fiduciary duty to the condominium by their failure to correct deficient construction and for their failure to properly estimate common charges.
Prior to consummating the aforementioned transaction, NSC's board of directors had been instructed by its legal counsel that they had a fiduciary duty (under Delaware law) to ensure that the tender offer was fair to the shareholders.