As a California trustee, you have a fiduciary duty to act in the best interests of your beneficiaries. This means that you keep the beneficiaries informed and that you put the interest of the beneficiary ahead of your own. “Best interest” varies depending on the circumstances of the trust. For example, in a declining economy, when real estate prices are declining, it may mean that the trust property should be sold faster than in prior times. Another example may be where there is a reverse mortgage balance remaining after death, the circumstances of the trust’s other assets, or lack thereof, may govern what you do with respect to the mortgaged property. In this blog post, we will discuss the four types of fiduciary duties of a California trustee and provide some tips on how to comply with them.
a. Informed decisions.
b. Considering the economic circumstances of the trust.
c. Seeking instructions when beneficiaries have conflicting ideas.
d. Maximizing income, when possible.
As a California trustee, you have a fiduciary duty to act in the best interests of your beneficiaries. This means that you are responsible for making informed decisions about the trust property, and taking into consideration the economic circumstances of the trust when making those decisions. Additionally, you must seek instructions from your beneficiaries if they have conflicting ideas or preferences. And finally, you must work to maximize the income of the trust whenever possible. By following these guidelines when making decisions regarding your trust property, you can be sure that you are fulfilling your fiduciary duties as required by California law.
