A fiduciary is an individual in whom another has placed the utmost trust and confidence to manage and protect person, property, or money. It is a relationship wherein one person has an obligation to act for another’s benefit. The word itself comes originally from the Latin “fides,” meaning faith, and “fiducia”, meaning trust.

A fiduciary relationship encompasses the idea of faith and confidence and is generally established only when the confidence given by one person is actually accepted by the other person.  Mere respect for another individual’s judgment or general trust in his or her character is ordinarily insufficient for the creation of a fiduciary relationship. The duties of a fiduciary include loyalty and reasonable care of the assets within custody. All of the fiduciary’s actions are performed for the advantage of the beneficiary.