Claims Examples

Trust Services Liability

≡ The trustee of a testamentary trust fails to obtain personal property from the executor of an estate as soon as the terms of the will and the probate law permit. The executor misappropriates the assets. The trustee is held liable to the beneficiaries for this loss due to the delay in obtaining possession of the trust property.

≡ A trustee is instructed to purchase a particular security by the donor of a non-discretionary trust account. The trustee purchases the wrong security. The error is discovered after the market value of the security purchased by the trustee has dropped, while the market value of the intended security specifically requested by the donor has significantly increased. The trustee is held liable for the difference in values.