Glossary/Wealth planning

Fiduciary

Also known as Fiduciary duty holder

A fiduciary is a person or organization required under applicable law or mandate to act with specified loyalty, care, prudence, or other duties for another party.

Editorially reviewed 2026-07-30

Why fiduciary matters

Fiduciary status shapes conflicts, decision process, documentation, delegation, fees, and remedies, but exact duties vary.

How it is applied

Clients identify the legal role, scope, beneficiary, standard, conflicts, compensation, discretion, reporting, and oversight.

Portfolio example

A trustee invests trust assets for beneficiaries and must follow the governing document and applicable duties.

How to interpret it

A title or marketing claim does not define every duty. Confirm the governing law and agreement.

Limitations and common misconceptions

Standards vary by jurisdiction and role. Fiduciary duty does not guarantee good returns or eliminate conflicts.

Sources and further reading