* Loyalty: Acting solely for the benefit of the person or entity they represent.
* Good Faith: Acting honestly and with integrity, without personal gain.
* Prudence: Acting with reasonable care and skill in managing the assets or interests of the other party.
* Disclosure: Providing full and accurate information to the person or entity they represent.
Examples of Fiduciary Relationships:
* Trustee and Beneficiary: A trustee manages assets for the benefit of a beneficiary.
* Agent and Principal: An agent acts on behalf of a principal.
* Attorney and Client: An attorney represents the legal interests of a client.
* Corporate Officer and Shareholders: Corporate officers have a fiduciary duty to act in the best interests of the shareholders.
* Guardian and Ward: A guardian manages the affairs of a ward.
In essence, a fiduciary is someone who is obligated to act in the best interests of another party, even if it means sacrificing their own personal interests. This duty is essential for maintaining trust and fairness in various legal and financial relationships.