Lesson 9

Question 1

Trustee’s Fiduciary Duties

Answer 1

In accordance with certain fundamental standards of conduct, a trustee’s duties are owed exclusively to the beneficiaries of the trust. These duties are enforceable by the beneficiaries, and violations may provide a basis for removal, surcharge, imposition of a constructive trust, and other appropriate remedies.

Question 2

Standard of Care Imposed on a Trustee

Answer 2

A trustee must exercise that degree of care, skill, and caution that a reasonably prudent person would exercise in dealing with her own property

Question 3

Duty of Loyalty Imposed on a Trustee

Answer 3

The trustee is under a duty of absolute loyalty to the beneficiaries. The trust must be administered solely for their benefit, and the trustee is not permitted to accept any other position that is, or could be, adverse to theirs