CNA - Avoiding Liability as a Trustee
Many attorneys, regardless of practice area, find themselves in the position of being asked to serve as a trustee for a trust. Attorneys routinely accept the responsibility of serving as a trustee and then find themselves as the custodian of a significant sum of money. Naturally to avoid running the trust dry, the attorney-trustee now must become an investor.
The responsibility of being a trustee carries with it multiple duties. They may be either explicit in the trust itself, or implied by law. Investment decisions can be a factor in determining if a trustee breached any duty, thus creating multiple avenues of potential liability. When investing, a trustee runs the risk of breaching the duties of prudence, loyalty, and accounting, among others, if they are not careful. This month’s In Practice…with CNA® explores the different duties a trustee takes on as well as some best practices for avoiding liability. Click here to read more.