Duties Owed By Trustees To Trust Beneficiaries
Full Video Transcript
Trustees are responsible for holding trust property for the benefit of the beneficiaries. Thus, the law imposes several legal duties on the trustee to ensure that the beneficiaries’ best interests are protected. The trustee has the duty to administer the trust in accordance with the terms of the trust and state law; The trustee also has a duty of loyalty – they must act solely in the best interests of the beneficiaries; The trustee must also deal impartially with all beneficiaries: They cant favor one beneficiary over another; The trustee also has a duty to avoid a conflict of interest, and can’t act in a way that benefits his or her own personal interests; Finally, the trustee has a duty to make the trust property productive and well invested. Now every circumstance is different, and an individual trustee’s duties are further determined by the terms of the trust and by state law, so the trustee may have other duties in addition to those already mentioned.