Understand differing interests without assuming equal treatment.
Under § 16003, a trustee with multiple beneficiaries must act impartially, taking account of their differing interests. Impartiality should not be confused with an assumption that each beneficiary must receive identical treatment regardless of the trust’s terms.
Practical documentation steps
These are suggested organizing practices, not a complete statement of legal requirements.
- Identify the interests relevant to the decision.
- Read the governing provisions with counsel.
- Keep a neutral record of the information and reasoning considered.
A question for your professional
How should differing beneficiary interests be considered under this trust?
Know the limits
Applicability depends on your role, the governing documents, the facts, and current law. Trust examples should not automatically be applied to estates or other engagements. Federal tax, other-state law, and court-specific issues may require separate research and advice.