What’s the answer and WHY? Jordan Conomos is the new trustee for the Grant Trust, which has both current beneficiaries and remaindermen. Up until now, the trust has been entirely invested in long-term tax-free municipal bonds. Conomos decides to put 30 percent of the assets in common stocks, with the justification that taxes should be the concern of the trust beneficiaries and not the trust, and the trust needs some diversification and growth. Conomos is: A) not violating his fiduciary duty. B) violating his fiduciary duty by not investing solely for the purposes of the current beneficiaries. C) violating his fiduciary duty by not considering taxes.
A? always think for the benefit of ultimate beneficiary, in this case, not the trust, but current beneficiary and remaindermen. wording is some what confusing, it sounds like he just considered the trust, but the later half of his justification satisfied “balance the need for current income beneficiaries and remaindermen” B doesn’t make whole lota sense, as it mentioned only current beneficiaries C doesn’t make sense. so A