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What a fiduciary does

On Behalf of | Oct 5, 2020 | Fiduciary Representation |

A fiduciary is a person who acts on behalf of his or her client and is required to make decisions that are in that person’s best interests. For instance, accountants, bankers or money managers in Texas or anywhere else could act as fiduciaries. A child’s legal guardian may also be considered to be a fiduciary role.

Fiduciaries must adhere to both ethical and legal guidelines

In 1830, a court ruling established that those who find themselves in a fiduciary role must adhere to a prudent person standard of care. Generally speaking, this means that whoever is considered to be in a fiduciary role cannot do anything that may cause a conflict of interest. Fiduciaries are not permitted to profit from their positions unless they are permitted to do so by their clients.

Trustees are generally seen as fiduciaries

If you create a trust, the person who is appointed to oversee it is bound to abide by the terms of the document. The fiduciary has a specific duty to the beneficiary of the trust as he or she is the one who owns the property it holds. In the event that you run for office, it may be necessary to create a blind trust. The trustee is bound to act in a prudent manner despite the fact that you have no say in how your assets are managed.

An attorney may be able to provide fiduciary representation to individuals or their estates. For instance, a legal professional may oversee a trust created for your benefit during your lifetime or act as an estate representative after you pass. A lawyer may also resolve any legal disputes related to your estate that arise before or after you pass.