fiduciary
Definition
A fiduciary is someone who is legally required to act in another person's best interest rather than their own. This is one of the highest levels of trust and responsibility the law recognizes, and it applies to relationships like financial advisors managing your money, lawyers representing you, or business partners running a company together.
Example
If you hire an investment manager to handle your retirement savings, they become your fiduciary, which means they must choose investments that benefit you even if a different option would earn them a higher commission.
Watch Out
If you take on a fiduciary role without realizing it, such as managing money or assets for a partner or investor, you can face serious legal consequences for making decisions that benefit yourself at their expense.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.