fiduciary

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fiduciary

(fĭdo͞o`shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. Among the common fiduciary relationships are guardian to ward, parent to child, lawyer to client, corporate director to corporation, trustee to trusttrust,
in law, arrangement whereby property legally owned by one person is administered for the benefit of another. Three parties are ordinarily needed for the relation to arise: the settlor, who bequeaths or deeds the property for another's benefit; the trustee, in whose hands
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, and business partner to business partner. In discharging a trust, the fiduciary must be absolutely open and fair. Certain business methods that would be acceptable between independent parties dealing with one another "at arm's length" may expose a fiduciary to liability for having abused a position of trust. Thus, in an ordinary business transaction the prospective purchaser of land need not inform the seller of an imminent rise in realty values, but one buying land from a partner must disclose such information. In many cases courts will treat an unexplained profit derived from a fiduciary relationship as an instance of constructive fraudfraud,
in law, willful misrepresentation intended to deprive another of some right. The offense, generally only a tort, may also constitute the crime of false pretenses. Frauds are either actual or constructive.
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fiduciary

Law
1. a person bound to act for another's benefit, as a trustee in relation to his beneficiary
2. 
a. having the nature of a trust
b. of or relating to a trust or trustee
References in periodicals archive ?
Most plan fiduciaries are unaware of their legal obligation to prove that they used plan assets to pay reasonable fees.
It has often been suggested that fiduciary law exists to protect vulnerable beneficiaries from exploitation by their fiduciaries.
The DOL initially commented on the subject in IB 94-02, where it explained that fiduciaries may engage in shareholder activity designed to influence corporate management if the fiduciary concludes, after considering the costs involved in voting proxies, that doing so will enhance the value of the plan's investment.
Once the provider is deemed to be a fiduciary, the provider becomes subject to a higher standard of care under ERISA, as well as particular limitations on the conduct of fiduciaries, i.
ERISA and the IRC generally prohibit fiduciaries from receiving payments from third parties and from recommending certain products that increase their own compensation in connection with investment advice rendered to participants and beneficiaries of an ERISA plan, IRA owners and those individuals who act as fiduciaries for an IRA or ERISA plans.
While not related to the DOL Rule, fiduciaries also should be aware of a Supreme Court Case settled in 2015, Tibble v.
50 percent of all respondents and 80 percent who describe themselves as fiduciaries say the standard of care is not well regulated.
Conventional fiduciary relationships are formed between fiduciaries and beneficiaries, and found an interpersonal form of accountability, realized through assignment of correlative rights and duties between the parties.
30) To protect these vulnerable beneficiaries, federal law establishes minimum threshold requirements related to the selection and monitoring of VA fiduciaries.
4) Like private fiduciaries who owe duties to beneficiaries, public officials possess discretionary authority to act on behalf of citizens, who cannot protect themselves from abuse, or so the analogy runs.
The fiduciary patrimony is distinct from the patrimonies of the fiduciaries.
1Fi360 offers training, tools and resources to promote a culture of fiduciary responsibility and improve the decision making processes of investment fiduciaries - individuals who manage money for others.