Mountain Ridge Bank has been named trustee for a $100,000 trust Fred and Martha Betts established for "the living children of the grantors.". List the requirements for establishing a trust. Identify the primary obligation of the trustee and discuss the fiduciary duty of the trustee
There are four requirements for establishing a trust: legal capacity of the grantor; appointment of at least one trustee; specific beneficiaries, although they may be listed as a class rather than by name; and specific assets to be the trust property. The primary obligation of Mountain Ridge Bank as the trustee is to carry out the terms of the trust. In carrying out the terms, the trustee has a fiduciary duty to the beneficiaries. The fiduciary duty includes a duty of loyalty (in managing the trust, Mountain Ridge must put the interest of the beneficiaries first, disclose any relevant information to them, not commingle its own assets with those of the trust, not do business with the trust, and not favor one beneficiary over another). The trustee also has a duty of care, acting as a reasonable person would when managing the assets of another. The trustee must make careful investments, keep accurate records, and collect debts owed to the trust.
You might also like to view...
Which of the following is least effective at conveying negative information as clearly and kindly as possible?
A) Embed the bad news in the middle of the paragraph. B) Suggest you might reverse the decision if circumstances change. C) Emphasize what you can do rather than what you cannot do. D) Imply the bad news instead of specifically stating the news. E) Minimize the space devoted to the news.
ABC Corporation would like to evaluate three production processes (A, B, and C) to accommodate the changes in demand for its products. The fixed and variable costs per unit are tabled here. Determine the most cost-effective process for an expected annual production volume of 2,000 units.
A. Process A
B. Process B
C. Process C
D. cannot be determined
Everyone can perform well as a virtual team member
Indicate whether the statement is true or false
When depot service is compared to operator maintenance:
A) operator maintenance is slower than depot service. B) competence is higher, but costs may also be higher, with depot service. C) depot service is often the weak link in the chain because of the lack of specific training. D) depot service occurs on-site, while operator maintenance occurs off-site. E) depot service is better for systems connected in parallel, while operator maintenance is preferred for systems connected in series.