Fiduciary Explained

The term fiduciary is a buzz word in the financial planning arena. The term is also applicable to our stewardship of God’s assets.The term fiduciary is a buzz word in the financial planning arena. The term is also applicable to our stewardship of God’s assets. Review the definition of fiduciary and envision how this applies to your personal financial stewardship. If God were looking to hire an advisor, what would your resume look like based on your past and current stewardship responsibilities?

“A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for example, a corporate trust company or the trust department of a bank, acts in a fiduciary capacity to another party, who, for example, has entrusted funds to the fiduciary for safekeeping or investment. Likewise, financial advisers, financial planners, and asset managers, including managers of pension plans, endowments, and other tax-exempt assets, are considered fiduciaries under applicable statutes and laws. In a fiduciary relationship, one person, in a position of vulnerability, justifiably vests confidence, good faith, reliance, and trust in another whose aid, advice, or protection is sought in some matter. In such a relation good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who trusts.”

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