Legal Question in Wills and Trusts in Florida
I am co-trustee of my dad's revocable trust, which includes rental properties.
As primary trustee, he has chosen not to have liability insurance on the properties.
As secondary trustee, I make none of the decisions.
As things are now, I assume that any liability claim can potentially take all of his property but none of my personal property.
If he resigns, making me sole trustee, I'm concerned that my own property might be at risk.
If so, is my best option to also resign if he resigns?
1 Answer from Attorneys
If you are in fact a successor trustee with no current power to act, then your father's decision not to have insurance cannot be held against you. You are correct that should anything happen your personal assets will not be at risk, only the assets of the trust.
If your father resigns or otherwise ceases to act as trustee and you then accept the duties of being trustee, then you might be liable to third parties or to the beneficiaries of the trust if there is a liability event and no insurance exists to cover it. If your father resigns then your best option may be to secure insurance for the properties, but without seeing the trust or knowing about the assets held in the trust, it is impossible to answer that question. Your best option is to schedule a consultation with an experienced trust administration attorney.
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