What is the primary legal document that outlines the responsibilities and powers of a fiduciary?

The primary legal document that outlines the responsibilities and powers of a fiduciary is a trust agreement. Trust agreements are specifically designed to set forth the terms and conditions under which a fiduciary, known as a trustee, administers the assets held in trust for the benefit of beneficiaries.

In a trust agreement, the responsibilities of the fiduciary are explicitly defined, including duties such as managing investments, distributing assets, and ensuring that the trust is administered according to the specified wishes of the grantor. This document provides a clear framework for the fiduciary's actions and establishes their legal authority, which is crucial for maintaining transparency and accountability.

While a power of attorney grants authority to an agent to act on someone else's behalf, it does not detail the broader responsibilities characteristic of fiduciaries in a trust relationship. A conservatorship order is more focused on the management of the personal and financial affairs of an individual deemed unable to care for themselves, which is distinct from the trust relationship. A will, while it can outline how assets are distributed after death, does not create a fiduciary relationship during the grantor’s lifetime, nor does it designate a fiduciary in the ongoing management of assets like a trust does.