Trustee Liability
/ˈtruːsti ˌlaɪəˈbɪləti/
Definitions
- (n.) The legal responsibility of a trustee for managing trust property in accordance with the terms of the trust and fiduciary duties.
Trustee liability may arise if the trustee mismanages trust assets or breaches fiduciary duties.
- (n.) The personal financial obligation a trustee may face if held accountable for losses due to negligence or misconduct in trust administration.
Due to trustee liability, the trustee was required to reimburse the trust for unauthorized distributions.
Forms
- trustee liability
Related terms
See also
Commentary
Trustee liability requires careful adherence to fiduciary duties; clear drafting of trust terms can mitigate risks.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.