fiducies

Fiducies are civil-law arrangements in which a person transfers assets to another person, the fiduciary, to accomplish a specified purpose while the assets are held and managed for the benefit of one or more beneficiaries. The transfer is governed by a fiducie contract, and the fiduciary holds the assets in a fiduciary capacity distinct from the settlor’s ordinary ownership.

Parties involved typically include the fiduciant (the person who creates the arrangement), the fiduciaire or trustee (the entity or person who holds and manages the assets), and the bénéficiaire (the beneficiary or beneficiaries who benefit from the arrangement). Assets can be movable property, real property, or financial rights and are managed according to the contract’s terms.

Purposes of fiducies vary and commonly include management of assets, securing obligations (as collateral), or facilitating estate and succession planning. Types often appear as fiducie de gestion (management), fiducie de securité (security arrangement), or fiducie de financement (financing). The exact form and permitted assets depend on the jurisdiction.

Operation and duties focus on the fiduciary’s obligations to act in accordance with the contract, with duties of care and loyalty, proper accounting, and avoidance of conflicts of interest. Assets within a fiducie are typically kept separate from the fiduciary’s own property and are managed to meet the agreed purpose; beneficiaries hold rights derived from the fiducie rather than direct ownership of the assets.

Termination and effects vary by jurisdiction but generally occur when the purpose is fulfilled, a term expires, or the contract is dissolved. Upon termination, assets may be returned to the settlor or transferred to the beneficiaries as specified. Fiducies are characteristic of civil-law systems and differ from common-law trusts in structure and treatment, though they often serve similar practical aims.