| Front | What is a trustee's duty of loyalty and good faith? |
| Back | A trustee has a duty to administer the trust in good faith (subjective standard) and to act reasonably (objective standard) when investing property and otherwise managing the trust solely in the best interests of the beneficiaries. |
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| Tags | #BarTrusts |
| Front | What is the duty of prudence? |
| Back | The trustee may delegate responsibilities if it would be unreasonable for the settlor to require the trustee to perform such tasks. If a function goes to the heart of the trust or constitutes a critical function concerning the property, then the function is discretionary and is not delegable. Otherwise, the function is merely ministerial and can be delegated. |
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| Tags | #BarTrusts |
| Front | What is the trustee's duty to be impartial? |
| Back | A trustee must balance the interests of the present and future beneficiaries by investing the property so that it produces a reasonable income while preserving the principal for the remaindermen, and sell trust property within a reasonable time if a failure to diversify would be inconsistent with the total performance portfolio approach.The duty does not require that the trustee treat each beneficiary equally, but it does require a trustee not to be influenced by the trustee’s personal favoritism or animosity toward individual beneficiaries in administering the trust. |
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| Tags | #BarTrusts |