What is the fiduciary relationship between a trustee and the beneficiaries?
The fiduciary relationship between a trustee and the beneficiaries is one of trust and confidence. This means the trustee has a duty to the beneficiaries to act in their best interests. The trustee has a responsibility to manage the assets of the trust according to the terms of the trust document and the beneficiaries’ wishes. The trustee has a responsibility to account for all of the funds and assets of the trust, and to invest and manage the trust assets in a prudent and diligent manner. The trustee also has a duty to inform the beneficiaries of significant developments in the trust. This includes giving the beneficiaries complete disclosure of all transactions and reports. In addition, the trustee must ensure that any distributions made from the trust are in accordance with the wishes and direction of the beneficiaries, and must ensure that the distribution is made in a timely manner. Finally, the trustee has a responsibility to protect and preserve the trust assets for the benefit of the beneficiaries.
Related FAQs
What is the settlor’s intent?What is a testamentary trust?
What are the requirements for a valid will?
What is an estate freeze?
What is a trustee removal clause?
What are the taxation implications of a trust?
What is the difference between a lifetime gift and a testamentary gift?
What is the perpetuity period?
What is a non-judicial settlement agreement?
What are the possible consequences of a breach of fiduciary duty?
Related Blog Posts
Understanding the Basics of Inheritance Laws: A Guide to Successfully Navigating State and Federal Statutes - July 31, 2023How to Ensure Your Estate Plan Reflects Your Wishes Through Inheritance Laws - August 7, 2023
Protect Your Rights as a Beneficiary: Understanding Your Legal Rights After Beneficiary Inheritance - August 14, 2023
Comprehending the Duties and Responsibilities of Executors of Estates: How to Properly Administer an Estate and Fulfill Inheritance Law Requirements - August 21, 2023
Maximizing the Benefits of Inheritance Law for Family Heirs of Estates - August 28, 2023