Trustee Liability

Learn about trustee liability in estate management. Understand fiduciary duties, potential risks, and protective measures for trust administration.

Can a trustee be personally liable for trust losses?

Yes, trustees can face personal liability if they breach their fiduciary duties, such as making imprudent investments or failing to follow trust terms. However, trustees are typically protected from liability for losses that result from reasonable decisions made in good faith. Proper documentation and adherence to trust provisions help minimize personal exposure.

Trusts

Trustee Liability: What Trustees Should Know

Trustee liability is the flip side of trustee authority. When someone accepts control over a trust, they also accept legal duties—and consequences if things go wrong.

SimplyTrust EditorialAugust 14, 2025