What is fiduciary duty?
Fiduciary duty is the legal obligation imposed on trustees, executors, and agents to prioritize the financial and personal interests of beneficiaries above their own when managing estate assets or making decisions on their behalf.
A fiduciary duty arises when someone accepts a position of trust over another person's money, property, or affairs. Trustees, executors, agents under a power of attorney, and guardians all owe fiduciary duties to the people they serve. This obligation requires them to act in good faith, avoid conflicts of interest, maintain transparency, and make decisions solely for the benefit of the person or estate they represent, not for personal gain.
The scope of fiduciary duty varies by role. An executor manages estate property during probate and must distribute assets according to the will and state law. A trustee administers a trust according to its terms, often over years or decades. An agent acting under a durable power of attorney makes financial or healthcare decisions when the principal cannot. In each case, the fiduciary must keep accurate records, avoid self-dealing, and invest or manage assets prudently.
Breach of fiduciary duty is the most common allegation in estate disputes. When beneficiaries believe a trustee or executor has acted improperly, delayed distributions, commingled funds, taken excessive fees, or favored one beneficiary over another, they may file a claim. Estate litigation over fiduciary breaches often centers on whether the fiduciary acted in the beneficiary's best interest and with reasonable diligence. Courts take these violations seriously because fiduciaries occupy positions where beneficiaries cannot easily monitor their conduct.