Which duty requires full disclosure and accounting to beneficiaries, including access to records?

Which duty requires full disclosure and accounting to beneficiaries, including access to records?

• A. TRUSTEE LOYALTY
• B. TRUSTEE DISCLOSE AND ACCOUNT
• C. TRUSTEE IMPARTIALITY
• D. TRUSTEE DIVERSIFY

Answer: (B)

Trustees have a duty to disclose and account to beneficiaries. This means they must keep thorough records of all trust assets, receipts, expenditures, investments, and distributions, and provide beneficiaries with clear, regular summaries or an accounting of how the trust is being administered. Beneficiaries also have the right to access trust records to verify accuracy and ensure transparency in how the trust is managed. This openness is what lets beneficiaries see that the trustee is handling the trust properly and in their best interests. While other duties—like loyalty (acting in beneficiaries’ best interests), impartiality (treating all beneficiaries fairly), and diversification (investing prudently to spread risk)—are important, they address different responsibilities. The disclosure and accounting duty is the one that explicitly requires full disclosure and access to records.

Trustees have a duty to disclose and account to beneficiaries. This means they must keep thorough records of all trust assets, receipts, expenditures, investments, and distributions, and provide beneficiaries with clear, regular summaries or an accounting of how the trust is being administered. Beneficiaries also have the right to access trust records to verify accuracy and ensure transparency in how the trust is managed. This openness is what lets beneficiaries see that the trustee is handling the trust properly and in their best interests.

While other duties—like loyalty (acting in beneficiaries’ best interests), impartiality (treating all beneficiaries fairly), and diversification (investing prudently to spread risk)—are important, they address different responsibilities. The disclosure and accounting duty is the one that explicitly requires full disclosure and access to records.