How are fiduciary entities created?
A fiduciary entity is a person which holds a legal relation of trust with another party. In other words, a fiduciary entity prudently takes care of money, recievables or any other asset for another person. The fiduciary entity is expected to manage assets for the benefit of other person with utmost care and prudence. Trustee and Beneficiary, Board members, legal executors, Guardians etc.are the most common examples.
So, a Fiduciary entity is created when one party places trust and reliance in another party who is influenced to assume fiduciary duty to act on behalf of the former.