Fiduciary

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DEFINITION of 'Fiduciary'

1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets for the benefit of the other person rather than for his or her own profit.

2. A loan made on trust rather than against some security or asset.

INVESTOPEDIA EXPLAINS 'Fiduciary'

1. Children or elderly people typically need a fiduciary. The person who looks after the assets on the other's behalf is expected to act in the best interests of the person whose assets they are in charge of. This is known as "fiduciary duty".

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