When the creator of a living trust in Anaheim passes away, it is time to begin the process of implementing the estate. The individuals in charge of this process are the trustees of the living trust. These trustees have certain duties that must be fulfilled in order to avoid potential liability. One such duty is the duty to protect trust assets. This duty of protection is partially fulfilled by ensuring that there is adequate insurance on applicable assets.
Which assets should a trustee consider insuring during the trust administration process? Following are seven examples:
- The primary residence of the trust creator
- Investment properties
- Vacation rental properties
- Valuable silver, gold, or other tangible personal property
It is customary to hire a professional appraiser to value the tangible property. This valuation provides the trustee with the information he needs for court-mandated reports and tax forms as well as the information required to ensure that assets are adequately insured.
Insurance policies must be purchased for the tangible property and trustees must be sure that they are listed as named insured on each policy. In addition, trustees must be careful to ensure that the insurance policies remain current throughout the entire term of the trust administration.
For more information about administering trusts in California, we encourage you to peruse our extensive online article library. Feel free to contact our office if you have any questions or would like to discuss your specific situation.