What are two key responsibilities when working with a co-fiduciary?

In a fiduciary relationship, particularly when working with a co-fiduciary, it is crucial to clearly define each party's role and seek court approval for arrangements that may require it. This helps ensure that responsibilities are understood and that each co-fiduciary operates within their designated authority, which is essential for maintaining accountability and compliance with legal standards. Properly defining roles minimizes the risk of conflicts and ensures that all actions taken are in alignment with the best interests of the beneficiaries.

Seeking court approval may be necessary for actions that could have significant implications for the trust or estate, providing an extra layer of oversight and protection for all parties involved. This is particularly important in complex situations where legal clarity can prevent future disputes.

Maintaining clarity in roles and seeking appropriate approvals also protects both fiduciaries from liability issues, as it offers a documented basis for their decisions and actions. Such practices foster collaboration and trust between co-fiduciaries, which is critical for effectively managing the fiduciary relationship.