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One of the most important jobs of a trustee implementing an estate plan in Anaheim is to protect the trust assets. This duty to protect is a fundamental duty of any trustee. Failing to fulfill this obligation could expose the trustee to potential liability. Fortunately, trustees are typically entitled to seek the guidance of an experienced trust administration attorney. A knowledgeable legal advisor can help ensure that the duty to protect trust assets is properly fulfilled.

What are some examples of the obligations of a trustee as it pertains to the duty to protect trust assets? Following are six such examples:

  1. Ensure that there is insurance in place to cover the assets that are held in the trust.
  2. For trust assets that are already covered by insurance policies, revise these policies to add the trustees as the named insured on the policy.
  3. Stocks, bonds, and other tangible personal property should be placed in a safety deposit box or other safe place.
  4. If the trust holds real estate, ensure that it is properly maintained and weatherized.
  5. Carefully choose trust advisors, such as financial planners and accountants, and monitor their activity to ensure that trust assets are not being wasted or misused.
  6. Diversify the trust’s assets to allow for modest gains and to protect against losses.

The duty to protect trust assets is crucial to ensuring that the beneficiaries of the trust receive their full and rightful inheritance. If the assets are not carefully monitored, they could potentially be wasted or mishandled.

For more information about implementing an estate plan and a living trust following the death of your loved one, read our blog. If you or your family are in the the process of trust administration, call our office today to schedule a consultation.

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