What is a key duty of a trustee concerning the trust property?

A key duty of a trustee concerning trust property is to manage it prudently and in the best interest of the beneficiaries. This includes the responsibility to ensure that the investments held within the trust remain sound and appropriate for the trust’s goals and the beneficiaries’ needs. The option to convert unsound investments to cash is particularly significant because it relates directly to the fiduciary duty of the trustee to protect the trust assets. By liquidating investments that are performing poorly or are no longer aligned with the investment strategy, the trustee helps to preserve the value of the trust property and minimize potential losses.

Trustees are expected to act with care, skill, and caution, and managing investments is a crucial part of fulfilling their fiduciary obligation. This role includes assessing performance, diversification, and the risks associated with different assets while ensuring that decisions align with the overall purpose of the trust and the best interests of its beneficiaries.