Is the liability of a trustee limited to the assets of the trust?
It is a common misconception that an independent trustee’s liability is limited to the assets of the trust regardless of the circumstance in which liability arises. However, this is not the case. Trustees act personally.
How is the liability of a trustee tempered?
A trustee’s personal liability is tempered, at least in part, by the trustee’s statutory right of indemnity (Trustee Act 1956, s 38 (2)). By virtue of this right of indemnity a trustee can recoup expenses reasonably incurred in the proper running of the trust.
Can a trustee have recourse to a trust?
The trustee company in question will commonly limit the ability to have recourse to the trust’s assets and will likely have no assets of its own to settle any claim against the trustee.
Can a director of a Trustee Company be liable?
However, the un-considered interpolation of a trustee company can leave the director of the trustee company liable to suit for failure to meet corporate obligations.
Who is the trustee of a living trust?
You will be the original trustee of your living trust. As trustee, you will have complete control over the property that will be held in the trust. As a day-to-day, practical matter, it makes little difference that your property is now held in trust. You won’t have any special duties as trustee of your trust.
Who is the successor trustee of nolo living trust?
When you make Nolo’s Living Trust, you are the trustee of your trust. In the trust document, you name someone else to be the successor trustee to take over after you have died.
Who is the sole trustee in a shared trust?
In a shared trust, if one grantor dies or becomes incapacitated and unable to manage his or her affairs, the other becomes sole trustee. But who should decide that it’s time for an original trustee to step aside, if the issue ever comes up?
Can a revocable trust be a sole member of an LLC?
A revocable trust is a living trust that can be terminated at any time by the grantor, that is, the person who created the trust. The grantor may withdraw assets from the trust, and the assets can be managed for the benefit of the grantor.