#45 · 2026-09-20 · Legal term
Duty of loyalty
The duty of loyalty restricts a trustee's use of trust administration for personal benefit. Under the cited Florida provision, a conflicted transaction can be voidable despite a fair price unless an exception applies.
Rule to remember
A trustee's duty of loyalty requires administration in beneficiaries' interests and restricts transactions affected by the trustee's conflicting personal interests.
Key elements and checks
- Identify the fiduciary relationship and personal conflict.
- Examine self-dealing or other conflicted transactions.
- Check authorization, approval, consent, timeliness, and other statutory exceptions.
In the source’s words
“a trustee shall administer the trust solely in the interests of the beneficiaries”
Florida Statutes § 736.0802(1)
The quotation is a Florida statutory example. Trust terms, revocability, and state law can affect the analysis; corporate loyalty has a related but distinct framework.