Can a trust trustee be held liable for a loss?
Can a trust trustee be held liable for a loss?
Any provision in a trust deed that exempts a trustee from liability for negligence is void, and a trustee may be held liable for any losses suffered by beneficiaries, if it is found that the trustee did not act with the required degree of care and skill, in the administration of the trust assets.
Can a trustee of a trust sell real property?
A trustor acting as trustee of a revocable trust is not necessarily bound by the full range of fiduciary duties as trustee, since they can modify the trust’s terms as trustor. A trustee may sell real property, subject to the authority granted to them in the trust document.
Can a trustee of a revocable trust in California?
The trustee of a revocable trust is not obligated to provide the Transfer Disclosure Statement (TDS) required in most California residential real estate transactions, provided that the trustee is a “natural person,” meaning not a corporation or other organization.
Can a trust instrument exempt a trustee from liability?
No trust instrument can exempt a trustee from this liability. If the trust instrument contains such a clause, it may invalidate the entire trust instrument and cause the trust to cease to exist. Trustees are required to exercise their powers independently and objectively.
A trustor acting as trustee of a revocable trust is not necessarily bound by the full range of fiduciary duties as trustee, since they can modify the trust’s terms as trustor. A trustee may sell real property, subject to the authority granted to them in the trust document.
The trustee of a revocable trust is not obligated to provide the Transfer Disclosure Statement (TDS) required in most California residential real estate transactions, provided that the trustee is a “natural person,” meaning not a corporation or other organization.
Who is the trustee in a living trust?
The person who creates a trust, known as the “trustor” or “settlor,” must designate a trustee in the trust document. In a living trust, the trustor may designate themselves as trustee, but they must also designate a “successor trustee” to take over after the trustor’s death.
Who are the beneficiaries of a trust instrument?
A trust instrument also creates a legal entity, known as a trust. A trust designates beneficiaries who are entitled to receive something from the assets held by the trust. This could be ongoing income from interest or rent, or proceeds from the sale of trust assets.