Latin is where we can establish the etymological origin of the term fiduciary. Specifically, it derives from "fiduciarius", which is the result of the sum of the following lexical components:
-The noun "fides", which can be translated as "faith".
-The particle «-ia», which is used to indicate «quality».
-The suffix «-ary», which is synonymous with «reference».
The term fiduciary has several uses. The first meaning that the Royal Spanish Academy ( RAE ) mentions in its dictionary refers to that which depends on the trust and credit that it manages to obtain .
In a similar sense, the agreement or operation that is based on trust is classified as fiduciary. A fiduciary security , for example, is issued in representation of money with the promise to exchange it, in the future, for it.
Fiat currency or fiat money , in this framework, assumes a value that is not intrinsic, but rather given by convention. This money is based on the trust of society and is not backed by reserves of any precious metal (such as gold or silver). The only thing that supports fiat currency is the promise of payment made by the entity that issues it.
Currently, the majority of money in circulation in the world is fiduciary: banknotes and coins have the value declared by the State . The material support is not valuable in itself, but what is important is the value given to it by the monetary authority that is in charge of issuing it and the trust that the people who accept money as a means of payment have.
Fiduciary, on the other hand, is the name given to the individual to whom another person transfers assets to manage them for the benefit of a third party. In a trust , the trustee receives the assets of the trustor so that he can dedicate himself to their administration, enforcing the purposes indicated and defending the assets.
If we talk about an inheritance we find three important figures, among them those of the fiduciary heir :
-First of all, there is the deceased or trustor, who is the one who establishes in his will the operation of the trust in relation to the assets of which he is the owner and that he has bequeathed.
-Secondly, we have to refer to the fiduciary or fiduciary heir who is the person who receives the assets in question, but not for himself. Specifically, its function is to manage and protect said assets in order to, when the time is indicated, transmit it to the trustee heir.
-Thirdly, there is the figure of the aforementioned trustee heir, who is the final heir. Yes, he will be the one who will receive the assets that have been bequeathed to him from the hands of the aforementioned trustee.
It is also important to know that the settlor will determine in his will whether the fiduciary heir will only be responsible for preserving and delivering the assets at the appropriate time to the fiduciary heir or if he must also be responsible for the administration and management of said legacy. What's more, there is even the possibility that it may be determined that you can enjoy the assets for a specific period of time.