What is the "duty of care" for a fiduciary?

The duty of care for a fiduciary entails the responsibility to act with the level of competence and attention that a reasonably prudent person would exercise in similar circumstances. This standard emphasizes the necessity for fiduciaries to make informed and careful decisions, considering the best interests of the beneficiaries they serve.

Fiduciaries are expected to conduct due diligence regarding their actions and make choices that are not only prudent but also align with the goals of the trust or estate they manage. This means they must stay informed about relevant information and seek professional advice when needed, ensuring that their actions reflect a commitment to those they are serving.

In contrast, the other options do not accurately capture the essence of the duty of care. For example, the notion of making risky investments or acting without guidance can lead to negligence, while maximizing fees does not align with the fiduciary's primary obligation to protect the interests of the beneficiaries. Thus, the choice reflecting the prudent person's standard is the correct representation of the duty of care for a fiduciary.