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Non-Professional Trustees

Mar 7, 2019 9:20:00 AM

Since most non-professional trustees don't have insurance industry experience, many of them may be unaware of all the responsibilities entrusted to them as well as the potential for liability exposure. In this video, we outline what exactly is required of non-professional trustees. To learn more about how Proformex supports non-professional trustees, watch the video below and visit our website.




An irrevocable trust cannot be modified, amended or terminated once it’s created.

Transferring assets into the trust effectively removes all the grantor’s rights of ownership to the assets in the trust.  Because the grantor no longer owns the assets placed in the irrevocable trust, their value is not taxable to the estate at death.

To ensure there are no incidents of ownership, someone other than the grantor must be appointed to act as a trustee, and they are responsible for managing the trust assets.

A family member, friend, or co-worker who has agreed to take on this role is known as a non-professional trustee.   

Non-professional trustees are generally chosen on the basis of personal relationships.  They typically lack the knowledge and experience of professional trustees and do not realize the full extent of their fiduciary role. 

To learn how Proformex helps support and reduce liability concerns for non-professional trustees, visit our website.

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