US-New YorkWhat duties does a trustee owe to beneficiaries in New York?
A trustee in New York owes beneficiaries duties of loyalty, prudence, impartiality, transparency, and prudent administration — including investing trust assets as a 'prudent investor' and providing regular accountings.
What the Law Says
New York law imposes strict fiduciary duties on trustees under the Estates, Powers and Trusts Law (EPTL) and the Uniform Prudent Investor Act (UPIA), which is codified in EPTL Article 11-2. These statutes define the standard of care, prohibited conduct, and reporting obligations.
The duty of loyalty requires a trustee to act solely in the interest of beneficiaries — never for personal gain. Self-dealing, conflicts of interest, and commingling of trust and personal assets are strictly prohibited.
Under the prudent investor rule, trustees must invest and manage trust assets as a 'prudent investor' would — considering the trust’s purposes, terms, distribution requirements, and beneficiary needs. Diversification is required unless clearly imprudent.
Trustees must act impartially among beneficiaries — balancing current income beneficiaries and remaindermen. Favoring one group over another violates this duty unless the trust instrument expressly permits it.
New York law requires trustees to provide accountings to beneficiaries at least every three years, or more frequently if the trust instrument or court orders it. Beneficiaries may petition the Surrogate’s Court for an accounting at any time.
Trustees must keep clear records, avoid unauthorized delegation, and promptly distribute assets per the trust terms — all while exercising reasonable skill and care.
Statutory TextA trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust.
— EPTL § 11-2.3 — Prudent investor standard
Statutory TextEvery trustee has a duty to administer the trust solely in the interest of the beneficiaries.
— EPTL § 11-1.6 — Duty of loyalty
Statutory TextA trustee shall keep clear and accurate records of all trust transactions and shall provide an accounting to the beneficiaries at least once every three years.
— EPTL § 11-1.7 — Duty to account
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.