When you place trust and confidence in a professional to help you make decisions about something within the expert’s field of expertise and they knowingly accept your request for assistance, that person is expected to live up to a fiduciary duty.
According to United States law, a fiduciary duty exists between two parties when one is obligated to act solely in the interest of the other. A fiduciary duty imposes on the fiduciary a duty to act with the utmost good faith in the bests interests of his/her/their client/partner.
The person identified as the fiduciary is expected to uphold a legal duty to you, the principal, and there must never be any conflicts of interest between you and the fiduciary.
Read on to learn three examples of fiduciary duty.
#1 - A trustee and a beneficiary.
Estate arrangements and trusts often warrant a fiduciary relationship between a trustee and a beneficiary. In such a case, the trustee is the fiduciary and the beneficiary is the principal.
The fiduciary can deal with the assets in the trust’s name since they are the legal owner of the questionable assets. Consequently, they are expected to live up to a duty of loyalty to make choices that are in the best interests of the beneficiary of the trust rather than the trustee’s own interests.
#2 - A guardian and a ward.
When a minor is under the legal guardianship of an adult, the fiduciary responsibility of the guardian may include:
- Deciding where the minor should go to school,
- Making sure the child receives sufficient healthcare, and
- Otherwise providing for the ward’s overall welfare.
#3 - An attorney and a client.
The United States Supreme Court awards the highest level of trust in the attorney-client relationship. When a lawyer or law firm is granted power of attorney by a client, they must live up to a legal duty to act with the utmost good faith in the best interests of the client.
We’re Here to Help Victims
If you have been the victim of a breach of fiduciary duty, you may be owed compensation for your losses. Don’t delay—reach out to our team right away to learn more about how we can help.
If you have been negatively impacted by a breach of fiduciary duty, call our Los Angeles attorneys at (929) 841-6928 or contact us online. We will fight to recover your full and fair compensation.