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Simple English definitions for legal terms
fiduciary duties of trustees
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A quick definition of fiduciary duties of trustees:
Fiduciary duties of trustees: When someone is in charge of managing a trust, they have certain responsibilities to the person who will benefit from the trust. These responsibilities are called fiduciary duties. The trustee must be careful, honest, and fair when managing the trust. They cannot use the trust for their own benefit. If there are multiple people who will benefit from the trust, the trustee must treat everyone fairly and make decisions that are good for everyone, not just one person.
A more thorough explanation:
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.