What is a Fiduciary?

A Fiduciary is a person appointed to handle the affairs of another who, for one reason or another is unable to handle their own affairs. If the reason is the person is a minor, the fiduciary is called a guardian. When the reason is death, the court appoints an administrator. If the deceased has left a will, naming some person to be the administrator, the court usually permits that person to qualify as an executor.

If the reason is mental incompetence, physical disability, inability to conserve his own assets, the fiduciary is called a committee, a conservator or a guardian.

When a businessman’s financial affairs become involved, an assignee for the benefit of the creditors is named. If placed in a receivership a fiduciary is known as a receiver.

Please note: Fiduciaries are usually required by statute to furnish bonds, conditioned on faithfully performing their duties in the appointed capacities.