What is the fiduciary relationship between a trustee and the beneficiaries?
The fiduciary relationship between a trustee and beneficiaries is a crucial part of inheritance law in Washington. A fiduciary relationship is special, in that it is a relationship of trust and confidence, in which one party is expected to act in the best interest of the other. In Washington, a trustee is legally bound to manage the trust assets in a manner that is solely for the benefit of the beneficiaries. This means that the trustee must use the trust assets for the sole benefit of the beneficiaries. A trustee is typically large financial institutions such as banks or trusts companies. The fiduciary duties of a trustee include a duty of loyalty, a duty of care, and a duty of good faith and fair dealing. A duty of loyalty means that the trustee must act solely in the interests of the beneficiaries, and not in its own interest or those of any other person. A duty of care requires that the trustee use the same degree of care an average, prudent person would use when managing their own property. A duty of good faith and fair dealing requires that the trustee use their best efforts to carry out the terms of the trust. A breach of any fiduciary duties can have serious consequences for the trustee and his or her beneficiaries. In the event of a breach of fiduciary duty, the trustee can be held liable for damages to the beneficiaries. The trustee can also be removed from their position and replaced with another qualified individual. The fiduciary relationship between a trustee and beneficiaries is incredibly important in inheritance law in Washington. The trustee must abide by all of their fiduciary duties to ensure the beneficiaries are being adequately taken care of.
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