What Is a Fiduciary? Duties and Meaning Explained
In this guide
What is a fiduciary? A fiduciary is someone who manages money or property for someone else. This is the basic fiduciary meaning: when you are named a fiduciary and accept the role, you must, by law, manage the person’s money and property for their benefit, not yours. Expats are often asked to take this role for aging parents back home or for family members abroad.
Quick answer
- A fiduciary handles another person’s money or property.
- The law requires you to act for their benefit.
- A family member or friend can name you a fiduciary through a power of attorney (POA).
Fiduciary meaning and definition
If you want to define fiduciary in plain words, it is a person (or organisation) who has accepted the legal job of managing another person’s money or property in that person’s interest. The fiduciary definition is not about the job title. It is about the duty: put the other person first.
What types of fiduciaries are there?
Beyond an agent under a power of attorney, the CFPB lists guardians or conservators of property, trustees, Social Security representative payees and VA fiduciaries. If you accept a role under a POA and act on their behalf, you are required to follow the instructions and act in accordance with the terms of the POA.
What are the four basic duties of a fiduciary?
| Duty | What it means |
|---|---|
| Act only in their best interest | Decisions must be best for them, not you |
| Manage their money and property carefully | You may pay bills, oversee bank accounts, make investments, pay taxes, collect rent or unpaid debts and arrange insurance |
| Keep their money and property separate | Never mix it with your own or anyone else’s; confused records can bring trouble with agencies such as adult protective services and the police |
| Keep good records | Keep true and complete records or you could face legal consequences |
Common mistakes
- Using the person’s account for your own expenses, even temporarily.
- Not keeping receipts and records.
- Accepting the role without reading the POA terms.
FAQ
What is the meaning of fiduciary?
A fiduciary is someone who manages money or property for another person and must act for that person’s benefit.
What is the definition of a fiduciary?
Someone who has accepted the role of managing another person’s money or property, and who is legally required to put that person’s interests ahead of their own.
Is a trustee a fiduciary?
Yes. The CFPB notes that a trustee is a fiduciary.
Can I be a fiduciary for a family member?
Yes, if they name you, for example through a power of attorney, and you accept.
Key takeaways
- Fiduciaries must put the other person’s interests first.
- Four duties: best interest, careful management, separate funds, good records.
Related guides
Last updated: October 2026. This guide is general information, not legal advice.
Sources
- Consumer Financial Protection Bureau: What is a fiduciary?