What is a primary responsibility of a trustee?

A primary responsibility of a trustee is to act in the best interests of the beneficiaries. This duty, known as the duty of loyalty, requires the trustee to make decisions that prioritize the beneficiaries' welfare and financial interests above all else. The trustee must manage the trust assets prudently, ensuring that actions taken are designed to benefit the beneficiaries and align with the terms established in the trust agreement.

Being faithful to the beneficiaries involves not only following the specific instructions of the trust but also maintaining a standard of care that ensures the trust assets are not jeopardized. This encompasses a range of duties, including properly accounting for trust property, managing investments with caution, and being transparent in communications regarding any decisions and actions taken concerning the trust.

While determining the distribution of trust assets, investing funds, and preparing financial statements are all important tasks associated with trust management, they ultimately serve the higher responsibility of acting in the beneficiaries' best interests. Therefore, emphasizing the duty to prioritize those interests is essential for a trustee's role.