Call: 203-637-6655 or email – Kyle Shepard

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March 26, 2019

March 26, 2019 Posted by: Category: Life Insurance No comments

In every Trust that is executed, the designated Trustee holds the important responsibility of fulfilling the written intentions of the Grantor in the Trust. The scope of duties both before and after death can be daunting, especially when dealing with beneficiary expectations.

A possible solution

Whether basic administration, Asset Protection or Distribution of Trust assets, the potential for a miss step in meeting those responsibilities can be significant.

Here are the top 3 issues that increase the potential for a problem for the Individual Trustee:

  • complexity of the grantor’s intention written in the trust
  • the value of assets that are held in the trust
  • the number of beneficiaries and their particular circumstances

Corporate Trustees find their backstop in their professional liability insurance to protect them from an error or omission. But how do you protect the Individual Trustee?

Individual Trustees have the same exposure, and may not have the skill set to meet those responsibilities. Those appointees should give consideration to Trustee Liability for protection in meeting their responsibilities. As the size of the Trust assets grow, so grows the potential litigation as well.

Every Trust is written with the best of intentions with a successful outcome as an end result. But that does not always happen. Protecting the Trustee with Liability coverage is a prudent backstop, if that success is challenged.

If you would like more details on protecting Trustees with Liability Insurance, drop me an email at sshepard@shepardinsgrp.com or call at 203 637-6655


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