Future Business Leaders of America (FBLA) Agribusiness Practice Test

What is the primary responsibility of a trustee in a trust?

1. To manage and control the trust assets

2. To execute the trust agreement

3. To create the beneficiary list

4. To distribute trust property among heirs

The correct answer is: To manage and control the trust assets

The primary responsibility of a trustee in a trust is to manage and control the trust assets. This role entails overseeing the assets held in the trust according to the terms specified in the trust agreement, ensuring that the assets are preserved, invested wisely, and ultimately distributed according to the beneficiaries' interests. The trustee acts as a fiduciary, meaning they are required to act in the best interests of the beneficiaries, making informed decisions about the management of the trust's resources. This can include activities such as making investment decisions, maintaining property, or otherwise ensuring the trust operates according to both the letter and spirit of the established agreement. While executing the trust agreement is also part of the trustee's role, it encompasses the broader responsibility of managing and controlling the assets rather than being a standalone duty. The creation of the beneficiary list is typically done prior to the trust's activation and does not fall under the trustee’s responsibilities. Similarly, the distribution of trust property among heirs is a part of the trustee's duties; however, it is usually carried out only once the trust terms dictate that the distribution occurs, thus it is encompassed within the overall management of trust assets rather than being a primary responsibility on its own.