When does a person owe fiduciary duties?
Fiduciary duties are largely defined by the relationship.A fiduciary relationship, for instance, exists between the executor of an estate and the family beneficiaries of that estate. In other words, the fiduciary is the agent, and the person entrusting the matter is the principal. In many cases, a person encounters a fiduciary relationship when engaging a professional. Some professions automatically owe fiduciary duties as an integral part of working in that profession. Doctors, lawyers, CPAs, and real estate agents/brokers owe fiduciary duties to their respective clients. Of course, traditional fiduciaries such as trustees and guardians owe fiduciary duties.In a corporate context, a majority shareholder of a closely held corporation owes fiduciary duties to minority shareholders.Directors and senior executive officers of all corporations owe fiduciary duties to their corporations.[6] Other professionals may also owe fiduciary duties to their clients.The focus is on the nature of the p
