What is the role of a trustee in relation to a beneficiary?

The role of a trustee in relation to a beneficiary is fundamentally about the fiduciary relationship that exists between them. A trustee is appointed to manage assets or property for the benefit of the beneficiaries, ensuring that the terms of the trust are followed and that the beneficiaries’ interests are safeguarded. This includes making decisions regarding the management of the trust assets and supporting the beneficiaries in receiving the benefits from those assets.

A trustee has a legal and ethical obligation to act in the best interests of the beneficiaries, which signifies a position of trust and responsibility. This often involves a duty of care, which means the trustee must act with diligence and prudence, and a duty of loyalty to avoid conflicts of interest. The key aspect here is that a trustee must prioritize the beneficiaries' needs and interests above their own or any other party's.

Understanding this role is critical in the context of trusts, as it dictates how the trustee should manage the assets and interact with the beneficiaries, highlighting the importance of transparency and accountability in their actions.