What is the fiduciary relationship between a trustee and the beneficiaries?
The fiduciary relationship between a trustee and the beneficiaries is a very important one. In North Dakota, a trustee is a fiduciary because they are legally responsible for managing assets for the benefit of the beneficiaries. In other words, they are required to act in the best interests of the beneficiaries and to only use the assets for the benefit of those beneficiaries. The trustee has a duty to provide the beneficiaries with information regarding the assets and how they are managed. Furthermore, the trustee must make prudent decisions about the assets and manage them in a way that is consistent with the trust’s terms. The trustee must also exercise reasonable care and diligence in managing the trust assets. This includes keeping accurate records, making appropriate investments, and following the terms of the trust document. They must also always remain loyal to the beneficiaries. This means that they cannot act for their own benefit or that of any other person, and any conflict of interest must be avoided. Finally, the trustee must also keep the beneficiaries updated on the trust assets. This includes providing regular and timely account statements and financial information. If there are changes to the assets, the trustee must inform the beneficiaries. Overall, the fiduciary relationship between a trustee and the beneficiaries is a very important one, and the trustee must always act in the best interests of the beneficiaries.
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