Which term describes a person legally authorized to manage another's assets?

Which term describes a person legally authorized to manage another's assets?

• A. Competent
• B. Fiduciary
• C. Executed
• D. Capacity

Answer: (B)

A fiduciary is someone legally authorized to manage another's assets. This role carries a duty to act in the other person’s best interests, with loyalty and prudent care. Examples include a trustee managing a trust, a guardian handling a minor’s or incapacitated person’s property, an executor administering an estate, or an agent under a power of attorney who handles someone else’s finances. Competent refers to having the mental ability to understand and perform legal acts, not the person who oversees assets. Executed describes the act of signing or completing a document, not a role. Capacity is the legal ability to make decisions or enter into contracts, not the responsibility of managing someone else’s assets.

A fiduciary is someone legally authorized to manage another's assets. This role carries a duty to act in the other person’s best interests, with loyalty and prudent care. Examples include a trustee managing a trust, a guardian handling a minor’s or incapacitated person’s property, an executor administering an estate, or an agent under a power of attorney who handles someone else’s finances.

Competent refers to having the mental ability to understand and perform legal acts, not the person who oversees assets. Executed describes the act of signing or completing a document, not a role. Capacity is the legal ability to make decisions or enter into contracts, not the responsibility of managing someone else’s assets.