When must a trustee remain impartial among beneficiaries?

A trustee must remain impartial among beneficiaries to ensure fair treatment and uphold the fiduciary responsibility stipulated by the trust. This impartiality is a fundamental principle of fiduciary duty, which requires trustees to act in the best interests of all beneficiaries without favoring one over another.

When the terms of the trust explicitly outline distinct duties or directives, they can alter the trustee's general obligation to remain impartial. For example, the trust may designate specific rights or distributions that favor certain beneficiaries, which could change how the trustee operates in relation to each party. When the trust's terms provide clear guidance, the trustee must adhere to those instructions, as they reflect the intent of the trust creator.

In contrast to the other options, which do not generally justify a departure from impartiality, the trust's terms directly influence and can redefine the trustee's obligations. Thus, understanding the specific provisions within the trust highlights the critical role that those terms play in a trustee's duties.