Understanding the Fiduciary Duties of Trustees

When it comes to managing a trust, the role of a trustee carries significant responsibility. Trustees are bound by fiduciary duty, which means they must prioritize the needs of the trust’s beneficiaries above their own. This responsibility includes investing trust assets prudently, avoiding conflicts of interest, keeping thorough records, and managing the trust’s administration efficiently. Breaching this duty can lead to legal consequences, including being removed from the trustee position or facing criminal charges in severe cases. For anyone setting up a trust, choosing a trustworthy trustee capable of fulfilling these obligations is crucial.

The foregoing material is for information purposes only and does not purport to be a complete description of the material referenced herein, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but there is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Any opinions are those of J. Blum & Associates Wealth Management and not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. There is no assurance that any investment strategy will be successful. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions. Every investor’s situation is unique, and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

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