Milpitas, CA estates & probate attorney Elijah Keyes discusses the duties a fiduciary has to their beneficiaries. A trustee, in their capacity as a fiduciary, assumes the vital responsibility of managing another individual’s assets or decisions. The fiduciary duty that they bear arises from the entrusted role they hold, obligating them to act in the best interests of the individual they represent. Within the realm of fiduciary duties, there exist a dozen distinct obligations, with a focus on the three most prominent ones being elucidated.

First and foremost is the duty of loyalty. This fiduciary duty mandates that the trustee prioritize the beneficiaries’ interests over their own. It’s a situation that frequently arises when a trustee is also a beneficiary themselves. In such cases, the trustee must ensure that their decisions are driven by the collective welfare of all beneficiaries, rather than self-interest.

The second significant fiduciary duty is the duty to avoid co-mingling. Trustees must refrain from placing assets into their own name, except in dire emergencies where no alternative exists. It is critical for trustees to maintain a clear demarcation between their personal assets and those under their stewardship.

Equally vital is the duty to adhere to the trust document. Trustees are obligated to manage the trust according to the established trust document, which serves as the definitive guide and governing set of rules. Even if a trustee receives verbal instructions from the grantor, these verbal directives do not supersede the written provisions of the trust document. Consequently, unless all beneficiaries unanimously agree to deviate from the trust document’s terms, the document remains the authoritative reference.