Asked by Whian Bester on Apr 24, 2024
Verified
Which of the following is most likely to breach one of the trustee's fiduciary duties?
A) Selling stock owned by the trust to realize capital gains.
B) Selling stock owned by the trust because it has declined in value over the last three years.
C) Delegating the selection of trust investments to an investment advisor.
D) Delegating the preparation of statements of account to an accountant.
Trustee's Fiduciary Duties
Obligations of a trustee to act in the best interests of the beneficiaries, including duties of loyalty, care, and impartiality.
Selling Stock
The act of offering company shares for sale to investors, typically to raise capital.
Capital Gains
The profit earned from the sale of a non-inventory asset that was purchased at a lower price, often subject to taxes.
- Understand the obligations and roles of personal representatives and trustees in a fiduciary capacity.
Verified Answer
MC
Mahak ChhajedMay 02, 2024
Final Answer :
C
Explanation :
A trustee owes a duty of loyalty (fiduciary duty)to the beneficiaries.She may not delegate the performance of discretionary duties (such as the duty to select investments)to another,but she may delegate the performance of ministerial duties (such as the preparation of statements of account).
Learning Objectives
- Understand the obligations and roles of personal representatives and trustees in a fiduciary capacity.
Related questions
If the Decedent Died Intestate,the Personal Representative Is Called A(n)________
Clarence Is the Trustee of a Trust ...
Which of the Following Is True Regarding Being a Fiduciary ...
Directors and Officers Have a Fiduciary Duty of Care
Both Directors and Officers of Corporations Are Fiduciaries for the ...