Which pair correctly identifies the two core duties of a fiduciary?

Which pair correctly identifies the two core duties of a fiduciary?

• A. Duty of loyalty and duty of prudence
• B. Duty of loyalty and duty of discretion
• C. Duty of prudence and duty of care
• D. Duty of loyalty and duty of confidentiality

Answer: (A)

Two duties define fiduciary responsibility: loyalty to the beneficiary and prudent management of assets. Loyalty means putting the beneficiary’s interests first, avoiding conflicts of interest, and not using the position for personal gain. Prudence means handling assets with care, diligence, and skill—making informed decisions, diversifying when appropriate, and monitoring actions to protect the beneficiary’s value. This pairing directly reflects what a fiduciary must do: be faithful to the beneficiary and act with careful, capable judgment in managing the assets. The other pairings mix in concepts that aren’t universally treated as the two core duties—discretion is a power rather than a duty; confidentiality is about information protection, not a fundamental fiduciary obligation; and care is basically the same idea as prudence, so pairing them would be redundant.

Two duties define fiduciary responsibility: loyalty to the beneficiary and prudent management of assets. Loyalty means putting the beneficiary’s interests first, avoiding conflicts of interest, and not using the position for personal gain. Prudence means handling assets with care, diligence, and skill—making informed decisions, diversifying when appropriate, and monitoring actions to protect the beneficiary’s value. This pairing directly reflects what a fiduciary must do: be faithful to the beneficiary and act with careful, capable judgment in managing the assets. The other pairings mix in concepts that aren’t universally treated as the two core duties—discretion is a power rather than a duty; confidentiality is about information protection, not a fundamental fiduciary obligation; and care is basically the same idea as prudence, so pairing them would be redundant.