Kristin Hetzer is the principal of Royal Palms Capital, where she oversees and manages both individual and corporate pension plan investments. Her recently published book,,"Valle Egypt", Kristin Hetzer talks about the concept of fiduciary duty as it relates to financial elder abuse.
A fiduciary duty is an obligation imposed on another person by law, requiring them to act in the best interest of the person, who trusts and relies on them. The law specifies that for a person to act as a fiduciary, they must have agreed to act in trust and confidence on behalf of the dependent or principal. This duty involves avoiding situations that might result in a conflict of interest with the person on whose behalf they're acting.
Due to the agreement to take responsibility and act in the interest of another, fiduciary duty may apply to a guardian in a ward relationship or an attorney and client relationship. However, it may also extend to employer and employee relationships and family members who may be named as an estate trustee.. When a person breaches a fiduciary duty, they can be sued and be required to pay damages if found guilty. Although, the time and money involved in proving this in court is a consideration., The best policy is to understand the concept and work to avoid or prevent going through the ramifications of breach of fiduciary duty. The book, Valle Egypt, does a good job of explaining the problems which may occur when a fiduciary acts improperly.
