Trustees' Liability
Whether remunerated or not, trustees face a significant personal liability should an error be made or a claim brought against them as a result of carrying out their duties. Trustees with a professional background such as an accountant or a solicitor may have some protection under their own professional covers – however when advice strays beyond their professional expertise – would their insurance respond? A separate trustees indemnity policy is essential for the protection of all trustees.
Claims examples could include:
- Tax liabilities arising on trust assets through poor decision making
- Under-insuring or indeed failing to insure the assets of a trust
- Paying or distributing assets to the incorrect beneficiary
- Selling assets without the prior agreement of all trustees
- Undeclared conflicts of interest or treating beneficiaries unequally