On the Trust and Fiduciary Relationship

Trust is a kind of fiduciary relationship, which is the basis of the emergence and continue of the trust. The essence of fiduciary relationship is the trustees' fiduciary duties, including duty of loyalty, duty of dealing with trust matter with utmost diligence, duty to act personally and duty to manage separately. Trustee's any breach of the fiduciary duties will result in the loss of settler's fiduciary interests, so he must take the compensatory duty.