Glossary of Fiduciary Terms
Fiduciary services can feel overwhelming without a strong understanding of the language used in the profession. This glossary provides clear, plain-English definitions of common fiduciary terms, helping you build confidence whether you’re exploring a career as a professional fiduciary, serving as a guardian or trustee, or simply seeking to understand your responsibilities.
The Fiduciary Institute designed this resource to make fiduciary concepts accessible while maintaining professional standards.
👉 Looking for the full, expanded glossary with 100+ terms, examples, and applications? You’ll find it inside the Fiduciary Pathways™ Foundations course.
Accounting (Fiduciary) – A report prepared by a fiduciary showing all receipts, disbursements, and current asset balances, often required by courts.
Advance Directive – A legal document that states a person’s healthcare wishes if they become unable to make decisions.
Beneficiary – A person or organization entitled to receive benefits or assets from a trust, estate, or account.
Bond (Surety Bond) – Insurance that protects beneficiaries from potential fiduciary misconduct or mismanagement.
Capacity – A person’s legal and mental ability to make decisions for themselves.
Conservator – A court-appointed fiduciary responsible for managing the financial affairs of an incapacitated adult.
Decedent’s Estate – The property, assets, and debts left behind by a deceased person.
Duty of Loyalty – The fiduciary obligation to act solely in the best interests of the client or beneficiary.
Fiduciary – A person or institution legally and ethically obligated to act in the best interest of another, often in financial, legal, or healthcare matters.
Guardian – A fiduciary appointed by the court to make personal, medical, and residential decisions for an incapacitated person.
Inventory – A detailed list of a person’s assets and debts, often required at the start of a fiduciary appointment.
Power of Attorney (POA) – A legal document authorizing one person to act on behalf of another in financial or healthcare decisions.
Principal – The individual who grants authority to an agent under a power of attorney.
Prudent Person Rule – A standard requiring fiduciaries to act with the care, skill, and judgment that a reasonable, cautious person would use.
Representative Payee – An individual or organization appointed by the Social Security Administration to manage benefits for someone unable to do so.
Successor Fiduciary – A person or entity designated to take over fiduciary responsibilities if the original fiduciary can no longer serve.
Trust – A legal arrangement in which one party (trustee) holds and manages assets for the benefit of another (beneficiary).
Trustee – A fiduciary responsible for administering a trust according to its terms and in the beneficiary’s best interest.
Ward – An individual placed under guardianship by the court.
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Want the complete glossary and practical training to go with it?
The Fiduciary Pathways™ Foundations course includes:
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The complete Fiduciary Glossary (expanded with case-based examples)
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Step-by-step training to help you apply fiduciary concepts in real-world situations
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Tools, templates, and resources to launch your fiduciary career with confidence