What do you mean by fiduciary?

Question

What do you mean by fiduciary?

Answer 1

A fiduciary is one, such as an agent of a principal or a company director, that stands in a special relation of trust, confidence, or responsibility in certain obligations to others; or a person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets for the benefit of the other person rather than for his or her own profit.

Examples:

• A Broker is a fiduciary for the seller.

• A banker is a fiduciary for the bank's depositors.

• An attorney may be a fiduciary for the client.

• A Trustee is a fiduciary for the Beneficiaries.