Santa Clarita, CA asked in Estate Planning for California

Q: As a trustee to a 3rd Party Special Needs Trust, do I need insurance to protect me from the sibling of the beneficiary?

The trustor has two sons and will split her estate accordingly. One son get his outright, the other gets his in a Special Needs Trust, of which I will be the Trustee. My CPA is adamant I get insurance, but the beneficiary and the trustor both assure me there is no way I can be sued by the other brother who is estranged from the SNT beneficiary (We are in California.) I don't want to spend 7-10k a year on insurance that is not needed, but if it is, of course I will. I am also in line to be the beneficiary to the SNT once the present beneficiary passes away, so I can see the brother trying to causes problems. Thank you so much!

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1 Lawyer Answer
James Edward Berge
James Edward Berge
Answered
  • Estate Planning Lawyer
  • San Jose, CA
  • Licensed in California

A: While it might be a good idea in general to have fiduciary insurance while acting as an individual, non-professional, trustee of a special needs trust, I don't believe you'll find any policies on the market with that type of coverage. There are fiduciary insurance policies available for professional trustees and businesses which manage other people's money, but I really doubt you'll find any that you're looking for.

Nina Whitehurst agrees with this answer

1 user found this answer helpful

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