Who is a Fiduciary and Why Does it Matter?

Whether you are creating a revocable living trust, writing a will and choosing an executor, or creating powers of attorney to delegate your legal decision-making abilities to others, you need to understand the concept of a fiduciary. Under the law, ordinary people don’t have an obligation to look out for one another’s interests. But a fiduciary is someone who isn’t just an average stranger. Fiduciaries have a legal obligation to act in the best interests of someone else, known as principals. Let’s take a brief look at fiduciaries and why they are important. Responsible At the heart of the fiduciary relationship is a duty of loyalty and care that the fiduciary has to the principal. For example, when you create a financial power of attorney, the agent you select will not only be responsible for managing the financial obligations you choose to delegate, but will have to do so in a way that serves your interests. The agent cannot simply use his or her new powers to go on a shoppin


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