What should a fiduciary prioritize when making decisions?

A fiduciary is a person or organization that holds a legal or ethical relationship of trust with one or more parties, typically involving the management of money or assets. When making decisions, the fiduciary must prioritize what is in the client's best interest. This principle is foundational to fiduciary duty, which requires the fiduciary to act with care, loyalty, and good faith.

Placing the client's best interest at the forefront ensures that the fiduciary makes decisions that enhance the welfare and objectives of the client, rather than being influenced by personal gain or external pressures. This encompasses a variety of considerations, including the client’s financial situation, goals, and preferences, while ensuring that all actions taken align with the ethical standards and legal obligations requisite of a fiduciary.

In contrast, focusing on what the client wants, while important, may not always reflect the best interest if those wants lead to decisions that could ultimately harm the client financially or legally. The fiduciary’s personal interests should never play a part in decision-making, as this could create conflicts of interest that compromise the trust placed in the fiduciary. Similarly, while benefiting the beneficiaries is important, it can diverge from the best interests of the client, potentially leading to decisions that do not align with the client