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    Question

    Which principle states that the trustee must act

    honestly and in good faith, prioritizing the interests of the beneficiaries above their own?
    A Principle of Confidentiality Correct Answer Incorrect Answer
    B Principle of Trustee’s Immunity Correct Answer Incorrect Answer
    C Principle of Fiduciary Duty Correct Answer Incorrect Answer
    D Principle of Trustee’s Ownership Correct Answer Incorrect Answer
    E Principle of Trustee’s Discretion Correct Answer Incorrect Answer

    Solution

    The Principle of Fiduciary Duty is fundamental to the law of trusts. It requires trustees to act with utmost good faith, honesty, and loyalty toward the beneficiaries. Trustees must avoid conflicts of interest and cannot benefit personally from the trust property. This principle ensures trustees prioritize the beneficiaries’ interests and manage the trust property responsibly and prudently.

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