What is a fiduciary duty?

A fiduciary duty is a legal obligation of one person to act in the best interest of another. In probate law, a fiduciary duty is a responsibility of one party to another that involves trust and loyalty. One of the most common examples of a fiduciary duty is that of a guardian or executor to the person whose estate they are administering. In this context, a guardian/executor must make decisions for the estate that are in the best interest of the estate, even if that means making a decision that may not be favorable to them. In California, the probate code defines fiduciary duty as any duty imposed by law when a person undertakes to act for the benefit of another. Furthermore, in the context of probate law, fiduciary duties often come into play when an executor or trustee waits to settle the estate after a person has passed away. In California, the executor or trustee must demonstrate loyalty to the estate as a whole, such as by collecting all of the assets, paying creditors, and distributing assets to the beneficiaries. To ensure that they are fulfilling their fiduciary duty, they must also keep accurate records of all transactions, maintain proper accounting of all funds and assets, and provide beneficiaries with all of the information needed to make an informed decision about their inheritance.

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What is a fiduciary duty?

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