Fiduciary for Dummies
adjective
pronunciation: fɪ'duʃi,ɛriWhat does Fiduciary really mean?
Hey there! So, the word "fiduciary" is a bit of a big one, but I'm going to try and explain it in the simplest way possible. Essentially, a fiduciary is a person or institution that has the legal responsibility to act in the best interest of someone else. It's like being put in charge of taking care of something really important, like a treasure, and you have to make sure you're doing everything to protect and grow that treasure for the benefit of the person who entrusted you with it.
There are actually a few different ways we can think about fiduciary. One way is in the context of finances, where a fiduciary is someone who is legally bound to act in the best interest of their clients when managing their money. Another way to think about it is in terms of a relationship of trust, where one person has a duty to look out for the well-being of another person. So, overall, fiduciary is all about putting someone else's needs before your own and making sure you're always doing what's best for them.
Let's say you have a best friend who's going on a trip, and they ask you to take care of their pet while they're away. You'd have the responsibility to make sure their pet is safe and happy, because your friend is trusting you to look after something that means a lot to them. That's kind of like being a fiduciary - you're taking on the responsibility to protect and care for something important to someone else.
Revised and Fact checked by William Taylor on 2023-11-15 14:44:58
Fiduciary In a sentece
Learn how to use Fiduciary inside a sentece
- When you appoint someone to manage a trust fund for your children, that person becomes a fiduciary and must make decisions in the best interest of your children.
- A lawyer who is given power of attorney to make financial decisions for a client is considered a fiduciary and must act in the client's best interest.
- In a business partnership, each partner has a fiduciary duty to the others, meaning they must act honestly and in the best interest of the partnership.
- When an investment advisor manages a client's retirement account, they are acting as a fiduciary and must make decisions that benefit the client, not themselves.
- A board member of a non-profit organization has a fiduciary responsibility to ensure that the organization's resources are used for its charitable mission.
Fiduciary Synonyms
Words that can be interchanged for the original word in the same context.
Fiduciary Hypernyms
Words that are more generic than the original word.
Fiduciary Hyponyms
Words that are more specific than the original word.
Fiduciary Pertains To
Words to which the original word is relevant