FIDUCIARY
An individual in whom another has placed the utmost trust and confidence to manage and protect property or money. The relationship wherein one person has an obligation to act for another’s
benefit.
A fiduciary relationship encompasses the
idea of faith and confidence and is generally
established only when the confidence given by
one person is actually accepted by the other per-
son. Mere respect for another individual’s judg-
ment or general trust in his or her character is
ordinarily insufficient for the creation of a fidu-
ciary relationship. The duties of a fiduciary
include loyalty and reasonable care of the assets
within custody. All of the fiduciary’s actions are
performed for the advantage of the beneficiary.
Courts have neither defined the particular
circumstances of fiduciary relationships nor set
any limitations on circumstances from which
such an alliance may arise. Certain relationships
are, however, universally regarded as fiduciary.
The term embraces legal relationships such as
those between attorney and client, BROKER and
principal, principal and agent, trustee and bene-
ficiary, and executors or administrators and the
heirs of a decedent’s estate.
A fiduciary relationship extends to every
possible case in which one side places confi-
dence in the other and such confidence is
accepted; this causes dependence by the one
individual and influence by the other. Blood
relation alone does not automatically bring
about a fiduciary relationship. A fiduciary rela-
tionship does not necessarily arise between par-
ents and children or brothers and sisters.
The courts stringently examine transactions
between people involved in fiduciary relation-
ships toward one another. Particular scrutiny is
placed upon any transaction by which a domi-
nant individual obtains any advantage or profit
at the expense of the party under his or her
influence. Such transaction, in which UNDUE
INFLUENCE of the fiduciary can be established, is
