Like other fiduciary relationships, trustees have fiduciary duties of care, loyalty, and good faith. As a result, the trustee must manage the trust in a reasonable manner and avoid self-dealing. Furthermore, trustees have a duty of impartiality in cases where the trust has two or more beneficiaries. Due to this duty, the trustee must take the interests of all beneficiaries, not just one, into account when managing the trust.
[Last updated in January of 2023 by the Wex Definitions Team]