Which term describes a situation where the agent acts to benefit himself or herself instead of the principal's best interests?

Which term describes a situation where the agent acts to benefit himself or herself instead of the principal's best interests?

• A. Durable power of attorney
• B. Springing power of attorney
• C. Retainer agreement
• D. Self-dealing

Answer: (D)

Self-dealing describes a fiduciary acting to benefit himself rather than the principal. In estate planning and related duties, the agent (for example, a fiduciary like an attorney-in-fact, trustee, or executor) owes a loyalty obligation to the principal. When that duty is breached by using the relationship to advance personal interests—such as profiting from principal assets, voting in a way that benefits the agent, or selling property to oneself at favorable terms—the agent is engaging in self-dealing. This is a breach of the fiduciary duty of loyalty and can trigger liability, removal, and remedies for damages to the principal. Durable power of attorney and springing power of attorney describe types of authority or the conditions under which authority activates, not the agent’s conduct. A retainer agreement is a contract for legal services. Neither describes the agent’s improper self-interest; they are about authority or relationship structure, not wrongful acts.

Self-dealing describes a fiduciary acting to benefit himself rather than the principal. In estate planning and related duties, the agent (for example, a fiduciary like an attorney-in-fact, trustee, or executor) owes a loyalty obligation to the principal. When that duty is breached by using the relationship to advance personal interests—such as profiting from principal assets, voting in a way that benefits the agent, or selling property to oneself at favorable terms—the agent is engaging in self-dealing. This is a breach of the fiduciary duty of loyalty and can trigger liability, removal, and remedies for damages to the principal.

Durable power of attorney and springing power of attorney describe types of authority or the conditions under which authority activates, not the agent’s conduct. A retainer agreement is a contract for legal services. Neither describes the agent’s improper self-interest; they are about authority or relationship structure, not wrongful acts.