Fiduciary duty is a legal responsibility when managing assets on behalf of someone else. Those in this position must act with loyalty and care, putting the client’s interests first and avoiding conflicts of interest. Breaching this duty can result in legal penalties. Contracts are often signed to outline responsibilities. A fiduciary duty is a legal […]
Fiduciary duty requires trustees to prioritize the interests of the principal, and breaches can occur through conflicts of interest or subordinating the principal’s interests. The concept varies by country, with US stockbrokers exempt. Breaches resulting in profit for the trustee can be remedied through constructive trust. Fiduciary duty requires that the best interests of the […]
Fiduciary estates are properties managed by one party for the benefit of another through a trust arrangement. Trustees hold legal title to the property but must manage it in the best interest of the settlor. Different forms of trust property require different management methods. Trust intangible property, like securities, is immovable and invisible. In most […]
Fiduciary fraud occurs when a person in a position of trust mismanages or misappropriates a client’s finances or assets. The client must prove deliberate breach of trust and financial loss to seek damages. Examples include fraudulent financial institutions and investment scams. Fiduciary fraud is a legal term that applies in a situation where there is […]
A fiduciary relationship involves one person, the trustee, managing the needs or property of another person, the beneficiary, and acting in their best interest. This relationship can exist in various situations, such as through a power of attorney, legal advice, or court-appointed guardianship. Trusts, executors, and personal estate representatives are also examples of court-appointed trustees. […]
An asset trust is a legal entity created to manage and protect a person’s assets for the benefit of their beneficiaries. It shields assets from lawsuits, creditors, and irresponsible beneficiaries. The trust owns the assets, making them immune from creditors and lawsuits. The beneficiary can receive income and start a business without losing the trust […]
The Depository Trust Company was established in 1973 to centralize the holding of paper share certificates, making trading and other activities on Wall Street more efficient. The company’s electronic record keeping helped pave the way for the increasingly digital world of finance. Today, the DTCC handles accounts for both the DTC and the National Securities […]
Trustees manage assets for others, but owners face fiduciary risk if the trustee does not act in their best interest. Laws aim to reduce this risk, and trust documents provide instructions for managing assets. Pension plans and retirement accounts are also managed by trustees, and investors face fiduciary risk if the trustee mismanages funds or […]
Software custody protects businesses by ensuring that the source code of a third-party software is held by a custodial agent who can pass it to the licensee if the licensor fails to provide promised services. The licensor pays a fee for custody services and can elect the custody agent. Causes for intervention include inadequate maintenance, […]
