45. Does a trustee have duties?

Yes. The law requires a trustee to: 1) Follow the legal instructions of the trust document; 2) Only act for the benefit of the beneficiaries; 3) Not favor one beneficiary 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.

bankruptcy glossary terms
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