The trustee has a duty to avoid conflicts of interest where it may deal with a third-party buyer where the trustee has a relationship that may affect the assessment of the proposed transaction. If the trustee fails to carry out the terms of the trust or falls short in his fiduciary obligation to the beneficiaries, then he may be liable for breach of trust.īecause beneficiaries enforce the terms of the trust, as a practicable matter, a breach of trust claim is more likely to be filed if they perceive that their benefit is less because of mismanagement of the trust's assets, self-dealing by the trustee, or the lack of impartiality in distributing the benefits of the trust. For instance, if the trust document stipulates that the beneficiaries are to receive enough income for their comfort and support, then the trustee has a duty to inquire into the condition of each beneficiary to determine their needs. The focus is on what a reasonable person would do to accomplish the trust's objectives, not the trustee's subjective intentions. Any actions taken by the trustee are viewed in respect to these duties and to the trustee's fiduciary obligation. The trustee is a fiduciary for the beneficiaries. The Uniform Trust Code ( UTC) §804 stipulates that the trustee has a duty to administer the trust with skill and care as a person of ordinary prudence would use in dealing with his or her own property and to be loyal to the beneficiaries (§802). Breach of Trust › Money › Wills, Estates, and Trusts › Trusts Breach of Trust
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |