Definition of Fiduciary

The term is derived from the Roman law, and means (as a noun) a person holding the character of a trustee, or a character analogous to that of a trustee, in respect to the trust and confidence involved in it and the scrupulous good faith and candor which it requires. A person having duty, created by his undertaking, to act primarily for another’s benefit in matters connected with such undertaking. As an adjec-tive it means of the nature of a trust; having the characteristics of a trust; analogous to a trust; relating to or founded upon a trust or confidence.

A term to refer to a person having duties involving good faith, trust, special confidence, and candor towards another. A fiduciary "includes such relationships as executor, administrator, trustee, and guardian.” ABA Code of Judicial Conduct, Canon 3C(3Xb). A lawyer is also in a fiduciary relationship with the client.

A person or institution who manages money or property for another and who must exercise a standard of care in such management activity imposed by law or contract; e.g. executor of estate; receiver in bankruptcy; trustee. A trustee, for example, possesses a fiduciary responsibility to the beneficiaries of the trust to follow the terms of the trust and the requirements of applicable state law. A breach of fiduciary responsibility would make the trustee liable to the beneficiaries for any damage caused by such breach.

The status of being a fiduciary gives rise to certain legal incidents and obligations, including the prohibition against investing the money or property in investments which are speculative or otherwise imprudent.

Many states have adopted the Uniform Fiduciaries Act, and the Uniform Management of Institutional Funds Act.

See also Fiduciary capacity; Fiduciary or confidential relation.

Foreign fiduciary. A trustee, executor, administrator, guardian or conservator appointed by a jurisdiction other than the one in which he is acting.

That's the definition of Fiduciary in Black's Law Dictionary 6th Edition. Courtesy of