Fiduciary Principles in Trust Law
Oxford Handbook of Fiduciary Law (Evan Criddle, Paul Miller, and Robert H. Sitkoff eds., 2019)
22 Pages Posted: 16 Apr 2018 Last revised: 16 Jan 2021
Date Written: 2019
This book chapter, prepared for the forthcoming Oxford Handbook of Fiduciary Law, canvasses the fiduciary principles applicable to a trustee of a donative, irrevocable private trust subject. The focus is on prevailing American law. The chapter examines (a) the trigger for finding a trust fiduciary relationship and the scope of that relationship; (b) the duty of loyalty; (c) the duty of prudence across the distribution, investment, custodial, and administrative functions of trusteeship; (d) other fiduciary duties in trust law, including the prominent duty of impartiality and the increasingly salient duty to give information to the beneficiaries; (e) the extent to which fiduciary principles in trust law are mandatory or may be waived by the settlor or by a beneficiary; and (f) the remedies available for a breach of duty by a trustee.
Keywords: trust, trustee, beneficiary, fiduciary, agency costs, loyalty, prudence, care, impartiality, disclosure, mandatory rules, default rules
JEL Classification: K10, K36
Suggested Citation: Suggested Citation