A fiduciary is a person or organization that has the legal and ethical responsibility to act in the best interest of another party. This relationship often occurs in financial contexts, such as between a financial advisor and their client, where the advisor must prioritize the client's needs over their own. Fiduciaries are held to a high standard of care and must avoid conflicts of interest. Common examples include trustees, who manage assets for beneficiaries, and lawyers, who represent clients. The fiduciary duty ensures that the entrusted party acts with loyalty and good faith.