According to California's Code of Ethics, what must fiduciaries do regarding their own powers?

Fiduciaries in California are guided by a Code of Ethics that emphasizes the importance of acting in the best interests of the beneficiaries. One of the key responsibilities outlined is the need to limit or eliminate unnecessary powers. This principle is rooted in the idea that fiduciaries should only exercise authority that is necessary for fulfilling their responsibilities and serving the interests of those they represent. By doing so, they minimize the risk of overreaching or misusing their authority, which could compromise the beneficiaries' trust and welfare.

Limiting unnecessary powers ensures transparency and accountability in fiduciary relationships. It helps maintain a clear focus on the obligations owed to beneficiaries, reinforcing the fiduciary's impartiality and diligence. In essence, this approach fosters ethical conduct and builds trust, which is foundational to fiduciary duties.

In contrast, options that suggest increasing authority, transferring powers, or extending responsibilities introduce complexities that may not align with the fiduciary's primary role. These alternatives could lead to conflicts of interest or a dilution of the fiduciary's duty to act in the best interest of their beneficiaries. Thus, the emphasis on limiting or eliminating unnecessary powers is crucial for maintaining ethical standards within fiduciary relationships.