Legal Definitions - fiduciary duties of trustees

Definition: The fiduciary duties of trustees refer to the responsibilities that trustees have when managing a trust. A trustee is someone who is appointed to manage a trust on behalf of the beneficiaries. The trustee has a legal obligation to act in the best interests of the beneficiaries and to manage the trust with care, loyalty, and good faith.

For example, if a parent sets up a trust for their child's education, the trustee must manage the trust in a way that benefits the child's education. The trustee cannot use the trust funds for their own personal gain or benefit.

Another example is when a trust has multiple beneficiaries. The trustee has a duty of impartiality and must act in the best interests of all beneficiaries, not just one. For instance, if a trust has two siblings as beneficiaries, the trustee must manage the trust in a way that benefits both siblings equally.

These examples illustrate how the fiduciary duties of trustees require them to act in the best interests of the beneficiaries and to manage the trust with care, loyalty, and good faith.