fiduciary relationship

A fiduciary relationship occurs when one person or entity (the fiduciary) is trusted to act in the best interests of another (the principal or client). This relationship involves a special duty of loyalty, honesty, and good faith, often seen in roles like lawyers, financial advisors, or trustees. The fiduciary must prioritize their client’s interests above their own, carefully managing any assets or decisions entrusted to them. Essentially, it’s a relationship built on trust, responsibility, and the expectation that the fiduciary will act with integrity and prudence.