Tuesday, April 28, 2015
The position of Trustee carries with it many fiduciary duties that can be tedious, stressful, and risky. When selecting a Trustee, the Settlor should carefully make sure the Trustee or Trustees are prepared to handle the responsibilities that being a Trustee entails. A Trustee can be held personally liable for failing to meet the appropriate standard of care. Settlor’s should be cautious about naming friends or family members as Trustees, as they might not be experienced or prepared for the fiduciary responsibilities. It is better to consider choosing a Corporate Trustee who is more experienced with managing Trusts.
See Terri R. Stallard, Trustee Duties are Not for the Faint of Heart, National Law Review, April 26, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.