Jasz
VIP Contributor
Fiduciary negligence is a circumstance in which a person violates their fiduciary duties or obligations by neglecting to take action in response to breaches of fiduciary responsibility when doing so may have stopped the violations. It is thought that this is professional malpractice. Even if a fiduciary did not get any compensation for their acts, they are nonetheless regarded as negligent.
Fiduciary duties are an implied contract between the trustee and beneficiary. The trustee has an obligation to act in the best interests of the trust; this includes making good decisions about management and investment strategy, as well as keeping track of the money and making sure it gets spent properly. If a fiduciary does not fulfill his or her duties properly, he or she will be liable for damages in case there is a loss due to mishandling of assets or other mismanagement of affairs (such as spending too much money on unnecessary expenses).
There are two types of fiduciaries: general fiduciaries and special fiduciaries. General fiduciaries are those who have been given power over more than one person's property, such as an executor who has been given control over all property left in their care after death. The most common type of fiduciary duty includes: duty of care; duty of loyalty; duty of confidentiality; duty of good faith and fair dealing; etc.
Fiduciary duties are an implied contract between the trustee and beneficiary. The trustee has an obligation to act in the best interests of the trust; this includes making good decisions about management and investment strategy, as well as keeping track of the money and making sure it gets spent properly. If a fiduciary does not fulfill his or her duties properly, he or she will be liable for damages in case there is a loss due to mishandling of assets or other mismanagement of affairs (such as spending too much money on unnecessary expenses).
There are two types of fiduciaries: general fiduciaries and special fiduciaries. General fiduciaries are those who have been given power over more than one person's property, such as an executor who has been given control over all property left in their care after death. The most common type of fiduciary duty includes: duty of care; duty of loyalty; duty of confidentiality; duty of good faith and fair dealing; etc.
