Who Owes Fiduciary Duties in Estate Planning
- Trustees: Must manage trust assets for the benefit of beneficiaries, not themselves
- Personal representatives: Must settle the estate honestly and efficiently
- Agents under power of attorney: Must use their authority for the principal's benefit, not personal gain
- Financial advisors (fee-only): Registered Investment Advisors owe fiduciary duties to clients. Commission-based brokers generally do not.
What Fiduciary Duty Requires
A fiduciary must show loyalty (putting your interests first) and care (making informed, prudent decisions). They must also show transparency (keeping you informed and maintaining accurate records). Violating fiduciary duty can lead to personal liability, removal, and legal action.