What is a Fiduciary Deed?

Malcolm Tatum
Malcolm Tatum

In order to understand the concept of a fiduciary deed, it is important to have a clear grasp on what is involved in functioning as a fiduciary. Here is some background on the role of fiduciary empowerment and how that can translate into the issuing of a fiduciary deed.

A fiduciary is an individual who has been authorized to handle the financial affairs of another person.
A fiduciary is an individual who has been authorized to handle the financial affairs of another person.

Essentially, a fiduciary is an individual who has been authorized to handle the financial affairs of another person. This responsibility may have come about due to assuming guardianship of an individual who is no longer capable to manage due to illness or emotional breakdown. In other instances, the fiduciary may have been appointed as a trustee, executor, or conservator for management of the estate of a loved one who has recently passed away.

The earmarks of functioning properly as a fiduciary are the desire to manage the resources properly, refusing to profit from the endeavor unless specifically provided for within the terms of the duties outlined, and to never allow personal interests to conflict with the management of the estate. In short, fiduciaries will always act in the best financial interests of the individual he or she is appointed to protect. That includes in asking for the issuance of a fiduciary deed.

Often in the situation of settling an estate or managing the resources of a loved one who is not able to make decisions, it is necessary to sell property. This is where the concept of the fiduciary deed comes into play. The fiduciary, as part of the management of the estate, has the authority to sell property on behalf of the principal owner. In order for a fiduciary deed to be granted, it must be perfectly clear to the courts that the fiduciary is in fact acting in the best interests of the principal.

Further, the deed must indicate that the fiduciary has made full disclosure regarding the condition of the property, and is not in a position to personally profit from the sale in any manner. Also, it must be clear that the sale will not lead to a conflict of interest between the estate that is being managed and any outside business relationships that the guardian, executor, or trustee may enjoy.

A fiduciary deed is not issued lightly. Careful investigation into the reasons for and the advantages to the principal estate must be clearly presented. In addition, the fiduciary must in good faith demonstrate that he or she will not realize unauthorized financial benefits from either the sale of the property, or the acquisition of the property by a buyer. With an eye to maintaining the best interests of the principal owner of the property, even though he or she may currently be incapacitated, fiduciary deeds help to keep everyone up front and honest regarding all matters related to the sale.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including wiseGEEK, and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

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Discussion Comments


Fiduciary deeds: run, don't walk. Stay away. It will bring you nothing but grief and others long after your dead please don't let any lawyer tell you otherwise.


In a fiduciary deed where the Grantor is the executor of a deceased estate what type of deed should be conveyed? If a General Warranty deed is the executor liable for any defects in title, etc? Or is the Grantor the estate and not the Executor


We are interested in a house under a Fiduciary Deed. When buying the house should we purchase title insurance and does the deed need to be changed to a warranty deed once the fiduciary deed is transferred to us? Additionally are there any legal or other issues we should be concerned with in buying a house with a fiduciary deed? Thanks.


The exact circumstances surrounding the bond and the findings of the court will determine the answer to this one. Your best bet is to seek the counsel of an attorney who is well versed in financial law.


How can anyone stop a bond that has been mandated by a court to a judiciary of a estate for over ten years and that requires annual payments yet no benefits for a large amount of time? Will the money paid for the bond over the years ever be recovered?

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