Fiduciary
A person who is legally required to act in another person's best interest, not their own.
A fiduciary is someone who holds a position of trust and has a legal duty to put another person’s interests ahead of their own. Common examples include a trustee managing a trust, a guardian caring for a child or vulnerable adult, an executor handling a deceased person’s estate, or a business partner managing company affairs.
Fiduciary duties are among the highest obligations the law recognizes. A fiduciary must act honestly, avoid conflicts of interest, keep accurate records, and make decisions that benefit the person they serve – not themselves.
Why it matters: If someone is a fiduciary for you, they are legally bound to protect your interests. If they misuse funds, make self-dealing transactions, or act carelessly, you can take them to court. Minnesota courts take breaches of fiduciary duty seriously and can order the fiduciary to pay back losses and step down from their role.
Example: Your uncle is the trustee of a trust your grandmother set up for you. He must invest the trust money carefully and only use it for your benefit. If he uses trust funds to buy himself a car, he has breached his fiduciary duty and you can take legal action.
Estate planning, trusts, guardianships, business partnerships, and financial management