Keep beneficiaries’ interests at the center of the work.
Section 16002 states the trustee’s duty to administer the trust in beneficiaries’ interests. Relationships, compensation, and competing interests deserve careful review. Disclosure alone should not be assumed to resolve every conflict.
Practical documentation steps
These are suggested organizing practices, not a complete statement of legal requirements.
- Identify financial and personal relationships relevant to a decision.
- Record compensation and potential competing interests.
- Ask counsel what review, consent, or other steps may be appropriate.
A question for your professional
Could a relationship or personal interest affect this decision?
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.