Insurance for trustee of revocable living trust

Asked 6 months ago - New York, NY

Can I get insurance that would protect my personal assets if I were sued for breach of fiduciary duty in my capacity as trustee of a living trust? If so, where?

Attorney answers (4)

  1. Donna R Blaustein

    Contributor Level 13

    3

    Lawyers agree

    Answered . Speak to your insurance agent about obtaining insurance for a fiduciary. If you have concerns about handling your duties properly, I strongly suggest you consult a trust attorney to advise you of your obligations and, by doing everything properly, you have a far better chance of avoiding litigation for breach of fiduciary duty.

    The above answer is not to be considered legal advice and should not be relied upon as such. You should consult... more
  2. Ivette M Santaella

    Contributor Level 15

    3

    Lawyers agree

    Answered . Hello,

    I would recommend contacting your insurance broker and inquiring about errors and omissions insurance coverage for a fiduciary. You may also ask about the standard CGL form, CG 00 01, which provides for a trust to be a named insured, and trustees are also named insureds regarding their responsibilities as trustees.

    Good luck.

  3. John P Corrigan

    Contributor Level 19

    1

    Lawyer agrees

    Answered . Since it is a RLT then the grantor is probably in complete control and you ar merely named as a successor trustee since a grantor usually wants to be in complete control of their won trust. However, to the extent you are named as a current trustee as opposed toma successor trustee then you would be best served by seeking an indemnity and hold harmless from the trust grantor. Your risk is very small in a traditional RLT so if still worried you can procure a fiduciary laibility policy for peace of mind.

    My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a... more
  4. Michael Leo Potter

    Contributor Level 19

    2

    Lawyers agree

    Answered . Yes, probably so. However, if the Trust's requirements are too much for you, you can always resign and let the next successor trustee designated take over. But speak to a broker first about E & O insurance. Good Luck!

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