those persons to be responsible for all breaches, especially if they were honest mistakes done without any intention of harming the beneficiary. These are provisions that need to be carefully discussed with the Settlors to see what limitations on liability they want to provide. The liability of a trustee is dependent on each State’s Probate Code. In general, many States will find that a trustee who fails to exercise reasonable care is personally liable. It generally will not matter whether the trustee receives compensation or not, he or she must still use ordinary care and diligence in administering the trust. A Co-Trustee is generally personally liable for breaches of trust by another trustee. A trustee can be relieved of liability for breach of trust by provision in the trust agreement. The amount of relief will be dependent on State law. For example, in California, a trustee can be relieved of liability for breaches of trust except for breaches of trust committed intentionally, with gross negligence, in bad faith, or with reckless indifference to the interests of the beneficiaries, or for any profit that the trustee derives from a breach of trust. The provisions below discuss several options for exculpating a trustee from his or her breach of trust. Including a provision for not holding the trustee responsible for loss of public benefits. These provisions should be carefully considered before including in an SNT. OPTION ONE: Holding All Trustees Responsible for Intentional and Gross Negligence Only Nonliability of Trustee No trustee shall be liable to any beneficiary for the trustee's acts or failure to act, except for willful misconduct or gross negligence. OPTION TWO: Holding Only Family or Trustees Responsible for Intentional and Gross Negligence Only Nonliability of Trustee No trustee named in this trust who is a relative of the Settlor shall be liable to any beneficiary for the trustee's acts or failure to act, except for willful misconduct or gross negligence. OPTION THREE: Not Holding Trustee responsible for identifying or maintaining government benefits Not Liable For Failing To Identify or Maintain Government Assistance The Trustee not be liable to the Beneficiary or any other third party, for failing to identify any public benefit program or resource available to the Beneficiary. The
those persons to be responsible for all breaches, especially if they were honest mistakes done without any intention of harming the beneficiary. These are provisions that need to be carefully discussed with the Settlors to see what limitations on liability they want to provide. The liability of a trustee is dependent on each State’s Probate Code. In general, many States will find that a trustee who fails to exercise reasonable care is personally liable. It generally will not matter whether the trustee receives compensation or not, he or she must still use ordinary care and diligence in administering the trust. A Co-Trustee is generally personally liable for breaches of trust by another trustee. A trustee can be relieved of liability for breach of trust by provision in the trust agreement. The amount of relief will be dependent on State law. For example, in California, a trustee can be relieved of liability for breaches of trust except for breaches of trust committed intentionally, with gross negligence, in bad faith, or with reckless indifference to the interests of the beneficiaries, or for any profit that the trustee derives from a breach of trust. The provisions below discuss several options for exculpating a trustee from his or her breach of trust. Including a provision for not holding the trustee responsible for loss of public benefits. These provisions should be carefully considered before including in an SNT. OPTION ONE: Holding All Trustees Responsible for Intentional and Gross Negligence Only Nonliability of Trustee No trustee shall be liable to any beneficiary for the trustee's acts or failure to act, except for willful misconduct or gross negligence. OPTION TWO: Holding Only Family or Trustees Responsible for Intentional and Gross Negligence Only Nonliability of Trustee No trustee named in this trust who is a relative of the Settlor shall be liable to any beneficiary for the trustee's acts or failure to act, except for willful misconduct or gross negligence. OPTION THREE: Not Holding Trustee responsible for identifying or maintaining government benefits Not Liable For Failing To Identify or Maintain Government Assistance The Trustee not be liable to the Beneficiary or any other third party, for failing to identify any public benefit program or resource available to the Beneficiary. The