What is one of the main duties of a trustee?

A primary duty of a trustee is to manage the assets of the trust in the best interest of the beneficiaries. This responsibility encompasses overseeing investments, ensuring proper distribution of income and principal, and adhering to the terms of the trust document. The trustee must act with prudence and loyalty, always placing the interests of the beneficiaries above their own. This fiduciary duty is central to the role of a trustee and is essential for maintaining trust among beneficiaries.

In contrast, other options do not accurately reflect the core responsibilities of a trustee. For instance, handling personal liabilities of the trust grantor is generally not a part of the trustee's duties since trust assets are distinct from the personal assets of the grantor. Mediating family disputes might be a necessary action at times, but it is more of a soft skill than a fundamental duty of a trustee. Lastly, preparing tax returns for beneficiaries is not typically within a trustee's scope; instead, the trustee is responsible for managing the trust's tax obligations, though beneficiaries may handle their own personal tax returns.