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.
