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 firstname.lastname@example.org or call at 203 637-6655
Author: Steve Shepard
Founder/Principal, Shepard Insurance Group - At Shepard Insurance Group we begin every relationship with a face to face meeting with the client. In a comprehensive discussion of coverage needs, personal concerns, objectives and finally appetite for risk, we can arrive at the proper insurance solution. Understanding the client is the first step to accurate execution.