Practice point: As a fiduciary, a trustee bears the duty of complete loyalty to the trust’s beneficiaries, regardless of the fact that the settlor's directions give the trustee a free hand.
Practitioners should note that a trustee is liable for a breach committed in bad faith, intentionally, or with reckless indifference to the interests of the beneficiaries.
Case: Boles v. Lanham, NY Slip Op 07848 (2d Dept. 2008)
The opinion is here.
