SIE practice questionmediumTrust Accounts
A trustee managing an account for a trust is authorized to:
- AMake investment decisions for the benefit of the trust beneficiaries✓ Correct answer
- BTreat the account as personal property
- CIgnore the trust document
- DDistribute funds for any reason without restriction
Explanation
Why A — Make investment decisions for the benefit of the trust beneficiaries
The trustee must act according to the trust and in the beneficiaries’ best interest. Misuse, ignoring the trust, or unrestricted distributions are violations of fiduciary duty.
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