Trustee Liability
Explore trustee liability, understanding obligations, risks, and steps to protect trust assets, ensuring sound estate management.
What are the potential liabilities a trustee might face in estate management?
Trustees hold a fiduciary duty to manage trust assets prudently and in accordance with the trust's terms. They can be held liable for mismanagement, such as failing to properly diversify investments or distribute funds inappropriately. This exposure means trustees often need to demonstrate transparency through detailed record keeping and proper communication with beneficiaries. Liability can be minimized by adhering to the trust's guidelines and seeking professional advice for complex financial decisions, ensuring compliance with both the trust and legal requirements.
