DGAA bLAWg

When Can a Trustee Be Held Personally Liable for Acts Done While Acting As a Trustee?

Web Admin - Tuesday, February 23, 2016

trustee held personally liable, Illinois Trust AttorneysAs a trustee, you are responsible for managing the trust and working with the beneficiaries. You have a fiduciary duty, or a legal obligation, to act solely in the interest of the beneficiaries by fulfilling the instructions of the trust as the trustor has required. A trustee must be respectful and careful, loyal, and impartial when serving as the trustee, and cannot take advantage of his or her trusted position to self-deal or glean benefits for him or herself from the trust. Developing a full understanding of what the legal obligations are as a trustee can be confusing, especially if you have limited legal experience dealing with trusts. An experienced estate planning and trusts lawyer at can assist you. 

A Breach of Fiduciary Duty Opens Trustees Up To Personal Liability

Trustees can be held personally liable for acts, or failures to act, as a trustee when the trustee does not carefully and diligently adhere to the trustee’s duties. When a trustee commits a breach of his or her fiduciary duty, the trustee opens him or herself up to liability for his or her actions taken while acting as the trustee. Examples where a trustee can be held personally liable for acts done while acting as a trustee include the following:

- A trustee may be held personally liable if there is a conflict of interest biasing the trustee’s judgment when it comes to the interests of the trust. Self-dealing, or making decisions or investments using the trust’s funds that in some way benefit the trustee either directly or indirectly will expose the trustee to liability;

- A trustee can be held personally liable for any interest and/or penalties that accrue for taxes filings that are made late. Liability exists because filing the appropriate tax forms on behalf of the trust is a responsibility that lies with the trustee. 

- A trustee could be held financially liable for losses on stock diversifications on behalf of the trust, or a failure to diversify, if losses are substantial. The trustee has an obligation to serve in the best interests of the trust beneficiaries, and failing to diversify when stocks are concentrated in a single company can lead to a significant loss in value of the trust. 

- A trustee can be held liable for commingling personal finances and the trust finances, especially in situations where the trustee is a family member to the beneficiaries. A trustee can avoid the appearance of impropriety by maintaining clear and thorough accounting records of the finances of the trust, and clear documentation regarding his or her personal finances. 

Speak with an Illinois Estate Planning Lawyer Today

If you have concerns that your trustee is in breach of his or her fiduciary duties, or if you are a trustee with concerns about a course of action for the trust you manage, please feel free to contact one of our experienced Illinois estate planning attorneys today. Our firm serves the communities of Inverness, Palatine, Schaumburg, Arlington Heights, Long Grove, Kenilworth, Riverwoods, Barrington, South Barrington, and Mount Prospect.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Source: http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2129&ChapterID=61




Five Advantages of Living Trusts Over Wills

Web Admin - Friday, January 03, 2014

By Jay Andrew
JAA@DGAALAW.COM / (847) 934-6000
http://www.dgaalaw.com/jay-andrew.html

When preparing for the disposition of their property after they pass on, many people often find themselves questioning what wills and living trusts are and which document would better suit their needs. Wills, governed by the Probate Act of 1975, are legal documents that a person prepares prior to their death, which specifies how the rest of the family should distribute their property and handle the other affairs. Living trusts, which are controlled by the Trusts and Trustees Act, are legal devices that allow a person of the creator’s choosing, the trustee, to handle the disposition of their property. While everyone’s situation comes with unique considerations, living trusts may provide various advantages over wills. Five of the most important advantages include:

1. Living trusts can help your family avoid dealing with long, draw-out probate proceedings. Courts use probate proceedings to tie up a person’s loose ends, distribute their property, and generally enact their will. If you use a living trust, rather than moving through the court system, the trustee can distribute the property in accordance with the trust. This means that your family will not need to bring themselves to the courthouse and deal with the fees and hassle that come along with probate proceedings.

2. Living trusts also provide more privacy than wills do. While both wills and living trusts remain private throughout your life, the probate court will look at the will after you pass on, even if there are no formal probate proceedings. That means that the will becomes a matter of public record. On the other hand, your relatives will not need to file the trust with the court, so it can stay between them.

3. Living trusts also stand a better chance of surviving a legal challenge after your death, making it more likely that your final plans will be enacted to your specifications. The extra strength from a living trust comes from your ability to keep an active eye on it during your life. Because you would stay involved with the trust’s management during your life, relatives would find it harder to prove that you were not of sound mind when making the plan.

4. Living trusts make leaving property to minor children simpler too. Because minors cannot own most property, the trustee whom you choose can manage it for them, whereas a court appointee would likely handle the management if you chose to pass the property on with a will.

5. Living trusts have further benefits in the event that you become incapacitated while alive. Ordinarily, such circumstances would require relatives to petition the court for control of your affairs, and then the court would appoint a person to manage them. With a living trust, you can appoint a successor trustee to take over management in the event that you become incapacitated.

Decisions about testamentary dispositions can be complicated and involve multiple areas of law. If you are in the process of making such decisions, contact a Palatine estate planning lawyer today. We serve many areas in the northwest suburbs including Arlington Heights, Crystal Lake and Barrington.


Recent Posts


Tags

car accidents meal breaks texting while driving distracted driving accident victims Mount Prospect wills and trusts lawyers federal regulations for LLCs Illinois insurance lawyer insurance dispute Rolling Meadows personal injury attorney South Barrington real estate attorney digital information personal injury claim Arlington Heights real estate lawyer Schaumburg corporate attorney Inverness probate lawyer Illinois elder law attorney Illinois insurance dispute lawyers Liquor Control Act Crystal Lake will lawyer rumble strips ken apicella Arlington Heights employment attorney marijuana Illinois Barrington personal injury lawyer drugs Illinois medical malpractice attorney Rolling Meadows tax attorney Des Plaines insurance attorney Kenilworth estate planning lawyer fiduciary rule delay Rolling Meadows medical malpractice lawyers field sobriety test Affordable Care Act Barrington business law firm Illinois wrongful termination lawyer Des Plaines drug crimes lawyer work unions wrongful death Chicago insurance law firm fatal car accidents Schaumburg civil litigation attorney employment law car accident lawyer real estate leasing spinal cord injuries personal injury Illinois registered agent Illinois job attorney owner responsibility liability claims Palatine Attorney Illinois employment law attorney Chicago will attorney, social media platforms, Illinois estate planning lawyer, Illinois employment lawyer Deer Park employment law attorney Crystal Lake personal injury lawyer Schaumburg Attorney motorcycle accident investment property Des Plaines personal injury lawyer wills and trusts Chicago traffic lawyer Inverness corporate attorney dynasty trusts BAC Crystal Lake criminal defense attorney gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys estate attorney Arlington Heights TBI attorney DUI attorney denied insurance claims pedestrian injuries, pedestrian fatality Schaumburg employment law attorneys Rolling Meadows employment law attorney employees Des Plaines pet law attorney Rolling Meadows traffic attorney underage DUI Illinois wills and trusts attorneys Exclusions Illinois medical malpractice lawyers low-ball insurance settlement Super Mario Des Plaines Traffic Lawyer Inverness traffic law firm Des Plaines collections attorney Chicago attorney estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers Schaumburg medical malpractice lawyer bicycle accidents sole proprietorship estate plan Crystal Lake injury attorney vacation home fines attorney fees Des Plaines Kenilworth estate planning attorneys Palatine business attorney federal crimes Illinois estate planning attorney deed transfer Des Plaines tax law firm distracted driving accidents drunk driving Schaumburg real estate lawyer Chicago trucking accident attorney swimming pools Rolling Meadows personal injury lawyers Rolling Meadows employment law attorneys Buffalo Grove probate lawyer Inverness personal injury attorney Palatine employment attorney privacy mortgage civil rights violation insurance denial appeals natural gas explosion business litigation installment contracts Attorney Ken Apicella Des Plaines personal injury lawyers Palatine construction attorney head on collisions Des Plaines real estate lawyer contracts Buffalo Grove traffic lawyers Palatine traffic accidents Schaumburg estate planning attorney Rolling Meadows accident lawyer traffic violations Barrington employment law firm Inverness estate planning lawyer Detainer Actions dealing with problem employees insurance disputes IRA trust transfer insurance attorney personal injury lawyer license revocation insurance negligence Illinois Probate Act of 1975 commercial leasing personal injury accidents pedestrian accident bad faith insurance claims rent to own real estate contracts Rolling Meadows traffic law firm Deer Park motorcycle accident lawyer DNR Deer Park traffic lawyer right to work Chicago insurance claim attorneys Illinois driving without license Palatine personal injury lawyer criminal defense traffic violations defense pedestrian accidents Schaumburg estate planning lawyer South Barrington real estate lawyer traffic deaths trucking accidents pizza emoji car accident estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Long Grove estate planning attorney modern family estate planning Palatine employment lawyer Illinois insurance claim dispute lawyers Crystal Lake traffic lawyer POA Illinois pet lawyer anesthesia errors Illinois lawyer Barrington workers compensation attorney wills Landlord Tenant Ordinance Crystal Lake civil litigation lawyer Crystal Lake employment law attorney power of attorney liens Schaumburg traffic lawyer FSLA Buffalo Grove employment lawyer Crystal Lake employment attorney Deer Park workers compensation lawyer Fourth of July Inverness real estate lawyer institutional trustee Illinois real estate lawyer landlord tenant law Rolling Meadows corporate lawyer estate planning lawyer Schaumburg probate attorney LLCs llinois Real Estate Lawyers Association medical malpractice Des Plaines drug lawyer estate tax Des Plaines accident attorney GM ignition switches drug possession Schaumburg injury lawyer senior citizens loopholes hands free device foreclosed rental property Palatine civil litigation lawyer internet Schaumburg employment attorney commercial real estate Arlington Heights tax lawyer employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, uninsured motorist blended families agent construction contracts Illinois jet ski accident lawyer Barrington civil litigation attorney capital gains tax Illinois collections attorney Illinois insurance claims lawyers license wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Barrington real estate lawyer personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Buffalo Grove traffic attorney rollover car crashes Deer Park personal injury lawyer Jay Andrew forming a corporation in Illinois Mount Prospect real estate lawyer BUI life insurance policy automated cars Rolling Meadows criminal attorney Buffalo Grove car accident lawyer Illinois estate planning insurance claim denials Transfer on Death Instrument Inverness injury lawyer Colin Gilbert Barrington drug crime attorney defective products compensatory time Crystal Lake accident attorney license suspension Inverness accident lawyer Crystal Lake car accident lawyer Illinois Wage Payment and Collection Act products liability Schaumburg insurance lawyers living trust benefits Arlington Heights accident attorney Chicago car accident lawyer slip and fall accidents Illinois medical malpractice claim Barrington employment law attorney Arlington Heights car crash attorneys Rolling Meadows Attorney rollover accidents Schaumburg Barrington litigation attorney sexual harassment Illinois injury lawyer traffic accidents Arlington Heights lawyer Crystal Lake bike accident lawyer Barrington boating accident attorney Crystal Lake employment lawyer trauma after an accident trust payments breach of contract golf accidents DUI defense back injuries auto accidents denial of life insurance Illinois medical malpractice case foreclosure involuntary manslaughter car collision insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys small business Schaumburg estate attorney suspended license Palatine civil attorney driving license reinstatement caregiver Barrington estate planning lawyer Legal Info car accident lawyers digital evidence cell phone tower data Family Medical Leave Act employment attorney drug crimes lawyer Crystal lake insurance dispute attorney employee misclassification subcontractor Illinois estate planning law firm Rolling Meadows insurance agent negligence insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Arlington Heights medical malpractice lawyer texting and driving loss of consortium living trust vs will Illinois speeding lawyer Arlington Heights insurance attorney Illinois pedestrian accident attorney Illinois personal injury Chicago estate planning lawyer murder defense Schaumburg criminal attorney Rolling Meadows insurance dispute lawyers, insurance dispute unauthorized overtime Rolling Meadows employment attorney traumatic brain injuries Illinois rollover accident lawyers digital assets School Visitation Rights Act living trust Rolling Meadows personal injury lawyer pay when paid contract speeding ACA liability unpaid assessment Illinois Sales Representative Act operating agreements personal injury claims overtime pay Illinois insurance disputes Palatine traffic lawyer Arlington Heights Attorney life insurance lawyer Buffalo Grove personal injury lawyer Barrington personal injury attorney workers compensation benefits workplace sexual harassment criminal law DUI overtime violations construction accidents Rolling Meadows drug defense attorney Palatine employment law lawyer unfunded trust Illinois civil litigation lawyer financial advisors deadly crashes Long Grove real estate attorney murder charges Illinois insurance attorney Arlington Heights wills and trusts attorney Illinois employment law Palatine elder law attorney Illinois trusts attorney premises liability in terrorem provision Arlington Heights wills and trusts lawyers insurance claim delay estate planning trusts Rolling Meadows litigation lawyer breathalyzer test Inverness insurance attorney Chicago biking tips Buffalo Grove medical malpractice lawyers BAIID traffic laws caretaker rights Inverness DUI lawyer Chicago will attorney Crystal Lake medical malpractice lawyer employment lawyer Home Remodeling Repair Act eluding a police officer car crashes Des Plaines real estate attorney first degree murder reckless homicide Whistleblower Claims Illinois motorcycle accident lawyer controlled substance cell phone accidents new real estate form medication errors Chicago estate planning manufacturing Des Plaines DUI attorney Inverness real estate attorney medical malpractice compensation real estate closing Deer Park medical malpractice attorney Illinois probate lawyer health insurance dispute fault based insurance pedestrian-automobile accident Illinois employment attorneys car crash Arlington Heights trucking lawyer job lawyers DUI penalities clemency Palatine workers compensation lawyer slip and fall CAM Illinois trucking safety Rolling Meadows boating crash lawyer Home Sale Contingencies criminal real estate zoning estate planning attorney traffic tickets problem employees employee rights taxes Buffalo Grove corporate attorney IRELA disability benefits insurance claim employment law, Illinois employment laws living wills Arlington Heights criminal lawyer underfunded trust real estate attorneys traumatic brain injury insurance agents commercial leases Illinois bicycle safety condo association medical research pet bites Illinois wills and trusts Rolling Meadows insurance attorney medical malpractice claims probate process hit and run accident wrongful termination Barrington estate planning attorney boating under the influence Arlington Heights estate planning attorney workers compensation Illinois will lawyer pregnant women Illinois Transfer on Death Instrument Thanksgiving residential real estate Illinois employee rights attorney. Crystal Lake estate planning lawyer Kenilworth estate planning attorney Illinois small business Illinois living will Food and Drug Administration's Food Safety Modernization Act Illinois Human Rights Act preventable medical errors personal injury law firm Inverness civil lawyer personal injury attorney Arlington Heights injury attorney Des Plaines criminal attorney Long Grove estate planning attorneys defective products lawyer healthcare Barrington injury attorney consent to a search murder creditors probate claims Crystal Lake medical malpractice attorneys Deer Park DUI lawyer construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Rolling Meadows DUI lawyer natural gas dram shop law Class A misdemeanor Mount Prospect elder law attorney blood alcohol content severance agreements Arlington Heights pedestrian accidents Arlington Heights car accident lawyer Buffalo Grove injury lawyer Buffalo Grove criminal defense lawyer Illinois Workers’ Compensation Commission Illinois red light cameras fiduciary rule medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers drug crime icy parking lots Des Plaines medical malpractice attorney revenge porn Long Grove estate planning college kids minimum wage whistleblower protections boating DUI probate lawyer Illinois construction accident attorney irrevocable trust social media after death accidental death benefits gift taxes probate claims process Buffalo Grove personal injury attorney sexual images special needs trust Joliet general practice lawyers Deer Park traffic accident attorney expungement Rolling Meadows car accident lawyers Palatine real estate lawyer Riverwoods estate planning lawyer Schaumburg drug defense lawyer Illinois business law atorneys Rolling Meadows Traffic Lawyer boating accidents Arlington Heights wills and trusts lawyer Arlington Heights employment law attorneys changes to mortgage law trucking accident lawyers wage theft IRA benefits Crystal Lake medical malpractice law firm employment contract DGAA insurance adjusters food poisoning civil litigation vacation home Illinois workers compensation lawyer Illinois workers compensation attorney no contest clauses trustee insurance denials Palatine trusts lawyer traffic crimes estate planning Illinois Smoke Detector Act Illinois home inspection real estate attorney Illinois employment law attorneys insurance claim denial Inverness elder law lawyer Illinois DUI attorney employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Schaumburg personal injury lawyers income distribution deducation Illinois tax attorney Schaumburg personal injury attorney Chicago employment attorney condo probate fees bike accident Palatine criminal defense lawyer Fair Labor Standards Act Chicago lawyer Illinois attorney Buffalo Grove insurance claim dispute lawyers cell phone Des Plaines motorcycle accident attorney guardianship attorney Des Plaines personal injury attorney traffic offenses Crystal Lake insurance lawyer Federal Food Drug and Cosmetic Act child safety Illinois criminal defense attorney insurance claims dog bites Rolling Meadows business lawyer corporate law trusts advance healthcare directive preventing accidents Illinois car accident attorney home inspection lawyer workers comp insurance dispute attorney Palatine estate planning lawyer Rolling Meadows probate lawyer Schaumburg personal injury lawyer brain injury unpaid overtime Illinois insurance claim attorney Illinois personal injury lawyers comparative negligence privacy laws Illinois personal injury attorney Buffalo Grove real estate attorney pain and suffering PTSD Palatine punch death healthcare claims Rolling Meadows real estate attorney comp time Illinois employment laws Illinois personal injury lawyer truck collisions denied insurance claim Palatine probate lawyer Barrington criminal lawyer Self-Directed IRA Accounts motorcycle accident lawyer crossover accidents Crystal Lake business law attorneys Barrington attorney Illinois traffic accident lawyer Forcible Entry life insurance real estate contract landlord Rolling Meadows marijuana attorney Illinois business lawyer Illinois traffic ticket lawyer Mt Prospect Attorney Illinois boating accident lawyer power of attorney for healthcare digital media accounts, estate planning, Arlington Heights estate planning attorney, Rolling Meadows insurance lawyer Schaumburg elder law lawyer Crystal Lake personal injury attorney startup company Schaumburg criminal law attorney life insurance claims Crystal Lake traffic attorney Arlington Heights personal injury attorney Barrington Traffic Lawyer Arlington Heights traffic attorney spinal cord injury Illinois defective products attorney medical marijuana TBI Rolling Meadows estate planning attorney digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers jet ski accidents Barrington medical malpractice lawyers Des Plaines injury law firm Illinois employment law firm mass shooting IRS Long Grove wills and trusts attorneys Schaumburg car accident attorney independent contractor DMV Arlington Heights personal injury lawyer Deer Park criminal attorney Crystal Lake law firm elder law bicycle dooring accidents Illinois LLC creation drunk driving statistics Rolling Meadows criminal lawyer car crash injuries Illinois mortgages estate planning for college students holiday statistics probate Policy Cancellation product liability Buffalo Grove law firm Do Not Resuscitate employee discrimination Des Plaines claims law firm Illinois traffic attorney Retaliatory Discharge civil litigation attorney Palatine drug lawyer Illinois real estate real estate Colin H. Gilbert Illinois corporate lawyer Crystal Lake tax lawyer Illinois workplace discrimination attorney Crystal Lake pedestrian accident lawyer real estate lawyer insurance claim dispute attorney trench injuries Schaumburg construction accident lawyer drug crimes Palatine corporate attorney homestead rights Schaumburg wrongful death attorney Illinois workplace lawyer Employment Discrimination Law jet ski criminal record Illinois insurance claim dispute lawyer Chicago employment lawyer Arlington Heights Traffic Lawyer Deer Park accident attorney Chicago corporate attorney Deer Park real estate law firm elder abuse Crystal Lake car accident attorney rest breaks surgical mistakes appealing an insurance claim Palatine corporate law attorneys Barrington criminal defense lawyer FMLA paid sick leave Illinois law Arlington Heights wills and trusts attorneys pet law Illinois traffic attorneys nursing home negligence tax attorney Palatine injury attorney Palatine insurance lawyer Palatine law firm marijuana crimes attorney Rolling Meadows insurance dispute lawyers Barrington Illinois estate planning lawyer Des Plaines civil attorney filing a medical malpractice claim Illinois traffic laws insurance claim dispute Long Grove real estate lawyer underinsured motorist Barrington employment attorney Crystal Lake pet attorney hiring employees ObamaCare

Archive