What are the responsibilities of a fiduciary?

The responsibilities of a fiduciary encompass a range of duties that prioritize the interests of another party, typically the client or principal. Specifically, a fiduciary is expected to exercise care, which involves acting with the competence and diligence that a reasonable person would use under similar circumstances. This means they must be knowledgeable about the dealings they conduct on behalf of their clients and make well-informed decisions.

Obedience refers to the fiduciary's duty to follow the lawful instructions of the principal, adhering strictly to their wishes as long as those wishes do not contradict the law or ethical considerations. Loyalty is another crucial element; the fiduciary must always act in the best interests of the client, placing the client's needs above their own personal interests or benefits. Finally, notice involves keeping the principal informed about all relevant facts and developments concerning their interests.

These responsibilities are foundational to maintaining trust and integrity in the fiduciary relationship, ensuring that the client is protected and their interests are served effectively.