Fiduciary Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Fiduciary, written in plain English, along with examples of how it is used.
What is Fiduciary?
1\) n. Latin meaning “trust.” Refers to a business or person who may act for another with total trust, good faith, and honesty who has the complete confidence and trust of that person. A fiduciary may include a trustee of a trust, a business adviser, attorney, guardian, estate administrator, real estate agent, banker, stockbroker, or title company. The fiduciary has more knowledge and expertise about the matters being handled and is held to a higher standard of conduct and trust than a stranger or a casual businessperson. Conflicts of interest must be avoided where the fiduciary’s interests are not in the best interest of the person who trusts him/her/it. For example: a stockbroker must consider the best investment for the client and not buy or sell on the basis of what brings him/her the highest commission. The best beneficiary’s best interest should be primary even if a fiduciary and beneficiary join together in a business venture. 2) adj. A relationship or situation where someone acts as a fiduciary for another.