What is the primary role of a fiduciary?

The primary role of a fiduciary is to manage and protect the interests of the beneficiaries. This is rooted in the fiduciary duty, which encompasses a legal obligation to act in the best interest of another party—in this case, the beneficiaries of a trust or estate. A fiduciary is expected to place the needs and interests of the beneficiaries above their own and to operate with loyalty, care, and good faith.

This responsibility includes making prudent investment decisions, providing accurate information, and avoiding conflicts of interest. By prioritizing the beneficiaries' interests, the fiduciary builds trust and ensures that the beneficiaries receive the proper support and benefits that the trust intends for them.

Other roles, such as maximizing personal benefits or serving as a mediator, do not align with the core fiduciary responsibility of prioritizing the interests of others. Similarly, ensuring compliance with personal investment strategies is not a fiduciary duty; instead, it is about acting with the best intentions and skills on behalf of those who depend on the fiduciary's management. Hence, focusing on the beneficiaries' needs is fundamental to the fiduciary relationship.