Definition – Fiduciary Owner

A Fiduciary Owner is an institution, such as a Pension or an Endowment, that owns legal title to money and other property entrusted to its good judgement pursuant to a deed of trust or other transfer for the benefit of a open class of qualifying beneficiaries that continues over time, forever.   As the owner of that money and other property, the Fiduciary Owners has full discretion to use the money or other property it owns in whatever way it chooses.  However, a Fiduciary Owner does have a fiduciary duty to exercise the powers of ownership with prudence and loyalty to the fiduciary purposes of its fiduciary ownership.