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Can a trustee of a living trust be held personally liable for a trust debt?

San Leandro, CA |

A rental agreement was entered into by a Trust and the agreement signed by one of the Trustees who was so identified and liable for the deposit's return' however, a trustee who had no part in the agreement is also being held personally liable for the return of the deposit.

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While I cannot address your specific trust because I do not have it in front of me so I can interpret the language contained therein, in most circumstances the trustee especially who did not execute documents would not have personal liability for trust debts.

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It sounds as if you are discussing active co-trustees. If so they both can be charged or sued. This highlights a danger of being a casual trustee.

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Without reading and reviewing the particular trust and rental agreement at issue, it is hard to tell you if there is personal liability. However, the general rule would provide for no personal liability so long as the trustee executed the documents as the trustee of XYZ trust (not personally).

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