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In general, in trust law, a fiduciary duty is imposed upon the executors of a trust with respect to the trustees. In other words, the executors of a trust must
by derefr 3y ago
In general, in trust law, a fiduciary duty is imposed upon the executors of a trust with respect to the trustees. In other words, the executors of a trust must act in the trustees' financial best interests, even where these interests would conflict with the executor's financial interests. To do otherwise is a breach of contract.
You can't trust (heh) regular people to be able to keep this duty in mind; which is why the executors of most trusts are law firms. Individual people sometimes make the mistake of making another individual person the executor of a trust they're establishing; but corporations are generally smarter than that.
In the case of corporate-established trusts, the question that can "go wrong" here isn't usually who the executor is, but rather, how the employees are defined to communicate their collective "financial best interest" to the executor. Very likely, there is a board of trustees defined in the structure of the trust, where some or all members of said board are elected by employees (similar to shareholders electing a board of directors of a company.)
- zrail 3y agoA trust has three interested parties. The _grantor_ establishes and funds the trust. The _beneficiary_ benefits from the assets inside the trust. The _trustee_ administers the trust and has a fiduciary responsibility to the beneficiary. Depending on the trust two or more of these may be the same person or people. Different types of trusts have different tax and legal treatments. To my limited understanding of US trust law, the term "executor" is typically reserved for estates rather than trusts, but maybe some states use that terminology?