Trustee fraud can occur in a wide variety of scenarios. One of the most common situations in which trustee fraud might occur is within the estate context. For instance, suppose that an elderly relative's will has set up a trust, and a brother is named as the trustee upon her death. As a trustee, the brother owes a fiduciary duty to all beneficiaries of the trust, i.e. all heirs that the relative has named in the trust document as entitled to a portion of his or her assets. Therefore, the brother has the duty to manage investments in a reasonable manner, to keep beneficiaries fully informed of all material facts related to the trust, and to use the relative's assets for the purposes intended by the relative. If, for instance, the brother places all of the trust's assets into a speculative business deal that later goes bad, the brother/trustee must be liable for fraud under some laws, and may be responsible for the losses that the beneficiaries incurred as a result of his actions.