Which of the following is a true statement regarding the powers of fiduciaries?

The assertion that fiduciaries owe a duty of loyalty to the beneficiaries is essential to understanding their role and responsibilities. A fiduciary is someone who is entrusted with the care and management of another person's assets or interests, and this relationship is built on trust and confidence. The duty of loyalty mandates that fiduciaries prioritize the interests of their beneficiaries above their own. This means that any decisions made by the fiduciary must be in the best interest of the beneficiaries and must avoid any conflicts of interest that could compromise the beneficiaries' interests.

This duty is a fundamental principle in fiduciary law and applies across various types of fiduciary relationships, including trustees, agents, and attorneys-in-fact. The objective is to ensure that beneficiaries are protected and that fiduciaries manage assets responsibly and ethically.

The other options don't align with the principles of fiduciary duty. For instance, fiduciaries cannot act solely in their financial interest or delegate their powers without restrictions, as both actions could undermine the trust placed in them by their beneficiaries. Similarly, changing beneficiaries at will would violate the fiduciary's obligation to act in the best interest of those beneficiaries. Understanding the duty of loyalty helps clarify what is expected of fiduciaries and reinforces the ethical standards that govern their conduct.