What does a fiduciary relationship primarily require?

A fiduciary relationship primarily requires full disclosure because it is built on trust and a significant level of confidence between the parties involved. In such relationships, one party, known as the fiduciary, is entrusted with certain responsibilities, typically involving the management of assets or the provision of advice. This obligation demands the fiduciary to act in the best interest of the other party, often referred to as the principal or beneficiary.

Full disclosure is essential to maintain this trust, as it ensures that the principal is fully informed about all material facts and circumstances that could affect their interests. This transparency allows the principal to make well-informed decisions, reinforcing the integrity of the fiduciary relationship. Ultimately, without full disclosure, the trust necessary for a fiduciary relationship can be compromised, leading to potential conflicts and legal issues.

While aspects such as legal representation, formal agreements, and shared profits can sometimes play a role in fiduciary relationships, they are not the defining requirements like full disclosure is. Legal representation may exist in certain scenarios involving fiduciaries, but it is not a requirement for establishing the relationship itself. Formal agreements are often not necessary for fiduciary duties to arise, as these can be established through relationships and conduct. Shared profits might occur in some business partnerships with fiduciary