CA Fiduciary: Professional Practices
Exam Questions + Verified Answers
100% correct, Update 2026
Duty of Loyalty -
correct answer ✅A fiduciary duty owed by an agent not to act
adversely to the interests of the principal
Conflict of interest -
correct answer ✅A conflict between self-interest and professional
obligation
Personal conflict of interest -
correct answer ✅Having a personal stake with the client (i.e.
Sharing assets)
Direct conflict of interest -
correct answer ✅Having services in direct conflict of interests to
client or proposed client (i.e. representing two different trusts
competing for similar assets)
Indirect conflict of interest -
correct answer ✅Typically includes professionals by which the
fiduciary hires with interests, or has clients with interests, in conflict
of the client's interest. This can be waived if all involved parties
agree.
,CA Fiduciary: Professional Practices
Exam Questions + Verified Answers
100% correct, Update 2026
What are several practices to reduce conflict of interest? -
correct answer ✅Having attorney's review operative documents,
listing closely held business and investment interests, and
maintaining a client and beneficiary database.
How may an attorney be a conflict of interest? -
correct answer ✅By witnessing how the trust is administered,
representing a family member of the client, or be witness to how
the assets were managed.
How may a client be a conflict of interest? -
correct answer ✅By having a privacy issue, disclosed confidential
information, and committing loyalty to them over beneficiaries or
estates over them (a fiduciary should always remain neutral and fair
to all parties).
Should a fiduciary do what a client wants or what is in their best
interest? -
correct answer ✅A fiduciary should commit to decisions for what
is in the client's best interest.
,CA Fiduciary: Professional Practices
Exam Questions + Verified Answers
100% correct, Update 2026
When in doubt, what should the fiduciary do when uncertain if an
action is legal/to code? -
correct answer ✅The fiduciary should seek court approval.
Who should the fiduciary be loyal to: the beneficiaries, the estate,
or to the client? -
correct answer ✅None of them. The fiduciary should treat
everyone equally and remain neutral.
In basic line of work, where complex issues arise in a
conservatorship, in a trust or estate, what should a fiduciary do? -
correct answer ✅Hire professionals to assist, ascertain what
documents are available for trusts (i.e. for taxes, asset marshaling,
etc.), and making sure to have a starting point.
What is important in understanding a client? -
correct answer ✅Understand the client's background, where they
are coming from.
Under general principles of California's code of ethics, part (b)-- -
correct answer ✅The fiduciary shall obey all local, state, and
federal laws, regulations, and requirements by the courts.
, CA Fiduciary: Professional Practices
Exam Questions + Verified Answers
100% correct, Update 2026
Under general principles of California's code of ethics, part (a)-- -
correct answer ✅The fiduciary shall maintain relations (as
appropriate) with a conservatee, ward, principal, and beneficiary as
appropriate to appointment.
As general rule, regarding decision making capacity of the client-- -
correct answer ✅The fiduciary shall allow reasonable opportunity
for the client to exercise his or her own choices as they are capable
of.
When making decisions on behalf of the client-- -
correct answer ✅The fiduciary shall take into consideration all
known ethnic, religious, social, and cultural values of the consumer.
Regarding a client's personal issue(s)-- -
correct answer ✅The fiduciary shall keep issues personal and
follow state law in disclosing said information and/or refuse
disclosure if it means harm to the person.
Substituted judgement -
correct answer ✅A form of surrogate decision making where the
Exam Questions + Verified Answers
100% correct, Update 2026
Duty of Loyalty -
correct answer ✅A fiduciary duty owed by an agent not to act
adversely to the interests of the principal
Conflict of interest -
correct answer ✅A conflict between self-interest and professional
obligation
Personal conflict of interest -
correct answer ✅Having a personal stake with the client (i.e.
Sharing assets)
Direct conflict of interest -
correct answer ✅Having services in direct conflict of interests to
client or proposed client (i.e. representing two different trusts
competing for similar assets)
Indirect conflict of interest -
correct answer ✅Typically includes professionals by which the
fiduciary hires with interests, or has clients with interests, in conflict
of the client's interest. This can be waived if all involved parties
agree.
,CA Fiduciary: Professional Practices
Exam Questions + Verified Answers
100% correct, Update 2026
What are several practices to reduce conflict of interest? -
correct answer ✅Having attorney's review operative documents,
listing closely held business and investment interests, and
maintaining a client and beneficiary database.
How may an attorney be a conflict of interest? -
correct answer ✅By witnessing how the trust is administered,
representing a family member of the client, or be witness to how
the assets were managed.
How may a client be a conflict of interest? -
correct answer ✅By having a privacy issue, disclosed confidential
information, and committing loyalty to them over beneficiaries or
estates over them (a fiduciary should always remain neutral and fair
to all parties).
Should a fiduciary do what a client wants or what is in their best
interest? -
correct answer ✅A fiduciary should commit to decisions for what
is in the client's best interest.
,CA Fiduciary: Professional Practices
Exam Questions + Verified Answers
100% correct, Update 2026
When in doubt, what should the fiduciary do when uncertain if an
action is legal/to code? -
correct answer ✅The fiduciary should seek court approval.
Who should the fiduciary be loyal to: the beneficiaries, the estate,
or to the client? -
correct answer ✅None of them. The fiduciary should treat
everyone equally and remain neutral.
In basic line of work, where complex issues arise in a
conservatorship, in a trust or estate, what should a fiduciary do? -
correct answer ✅Hire professionals to assist, ascertain what
documents are available for trusts (i.e. for taxes, asset marshaling,
etc.), and making sure to have a starting point.
What is important in understanding a client? -
correct answer ✅Understand the client's background, where they
are coming from.
Under general principles of California's code of ethics, part (b)-- -
correct answer ✅The fiduciary shall obey all local, state, and
federal laws, regulations, and requirements by the courts.
, CA Fiduciary: Professional Practices
Exam Questions + Verified Answers
100% correct, Update 2026
Under general principles of California's code of ethics, part (a)-- -
correct answer ✅The fiduciary shall maintain relations (as
appropriate) with a conservatee, ward, principal, and beneficiary as
appropriate to appointment.
As general rule, regarding decision making capacity of the client-- -
correct answer ✅The fiduciary shall allow reasonable opportunity
for the client to exercise his or her own choices as they are capable
of.
When making decisions on behalf of the client-- -
correct answer ✅The fiduciary shall take into consideration all
known ethnic, religious, social, and cultural values of the consumer.
Regarding a client's personal issue(s)-- -
correct answer ✅The fiduciary shall keep issues personal and
follow state law in disclosing said information and/or refuse
disclosure if it means harm to the person.
Substituted judgement -
correct answer ✅A form of surrogate decision making where the
