Definition: Fiduciary

A fiduciary is a person serving in a role that legally obligates him or her to fulfill duties of good faith, trust, candor, and confidence to another person. The roles of a fiduciary can include managing finances, property, and even legal rights on behalf of another. A fiduciary is held to a high standard of care. The fiduciary must act in the best interests of the person to whom they owe their duties, avoiding conflicts of interest and self-dealing.

Examples of fiduciaries include attorneys (who owe duties to their clients), personal representatives, guardians, custodians, and attorneys-in-fact.