45. Does a trustee have duties?

Yes. The law requires a trusteeA person who stands in a fiduciary relation to another, having been given legal title to someone else’s property for the benefit of a third party. to: 1) Follow the legal instructions of the trustAn arrangement in which property interests are legally held by one person (the trustee) at the request of another (the settlor) for the benefit of a third party (the beneficiary). document; 2) Only act for the benefit of the beneficiaries; 3) Not favor one beneficiaryA person for whom property is held, e.g., in a trust, or who is to receive something as a result of a legal instrument, e.g., a will or insurance policy. over another; 4) Avoid personal conflicts of interest with the beneficiaries; 5) Never use trust assets or the trustee’s powers for the trustee’s own benefit, except as the trust document specifically authorizes it; 6) Keep trust assets separate from assets belonging to anyone else; 7) Not delegate to others responsibilities the trustee can reasonably do themselves; 8) Administer and invest trust assets with reasonable care and skill with an eye toward accomplishing the purposes of the trust; 9) Diversify investments; and 10) Keep detailed records and give periodic reports and/or accountings to beneficiaries.