What is required for a fiduciary to legally act on behalf of an estate?

A fiduciary is an individual or entity that has the legal duty to act in the best interests of another party, often in the context of managing an estate. To legally act on behalf of an estate, a fiduciary must typically be appointed by a court. This court appointment is essential as it legitimizes the fiduciary's authority to manage the estate’s assets, settle debts, and distribute property according to the terms of the will or applicable laws if there is no will.

The court process ensures that the appointed fiduciary is suitable for the role and that they are held accountable to the law in their dealings with the estate. This form of oversight is particularly important in estate management, as it serves to protect the interests of beneficiaries and creditors, making the court appointment a critical requirement for the fiduciary’s legal authority.

While a written agreement, majority votes from beneficiaries, or securing a financial bond may be beneficial or required in certain situations, the primary requirement for a fiduciary to act on behalf of an estate is the legal appointment by the court, which grants them the appropriate authority needed in the context of estate administration.