Managing family trusts comes with unique challenges and risks, including personal liability for trustees and potential exposure of trust assets.
Trustees stewarding assets held in family trusts attract a degree of risk from multiple sources. Where a trust’s deeds contain a comprehensive exoneration clause, the trust’s assets also carry a significant portion of the risks, often uninsured.
Key Extensions for Trustee Protection
Rokstone’s newly enhanced Family Trustee Liability product, backed by A-rated capacity and exclusively available via brokers, protects against the risks associated with non-professional trusteeship. Two new extensions, Beddoe Costs and Exoneration coverage, plug the gap in these policies which currently expose trust assets to financial loss.
Rokstone’s Exoneration and Beddoe Costs extensions protect trust assets in two scenarios: when trustees’ personal liability is already covered by trust deeds and the trust’s assets are exposed to losses incurred by trustees (or their negligence), an when seeking a Beddoe Order - legal approval trustees seek for contentious actions, ensuring court review beforehand.
The enhanced product provides coverage for the most common issues faced by trustees, including:
Allegations of breaches of trust and self-dealing
Family disputes (beneficiary wishes versus trustee actions)
Allegations of trust asset mismanagement
Managing complex tax and asset reporting requirements
Addressing Niche Risks With Rokstone
With over 600,000 family trusts and estates in the UK, most remain uninsured, presenting a significant opportunity for brokers, especially those specialising in D&O, PI or rural estates, which are often tied to family trustee risks.
Jimmy Heaton, Head of D&O at Rokstone, emphasised the importance of addressing niche risks for trustees and trusts, noting, “The enhancement of our Family Trustee Liability product is a great asset to our coverage suite, ensuring we inspire confidence amongst brokers witnessing increased client demand for protection against niche speciality risks such as this.”
Rokstone’s enhanced coverage specifically addresses this area of exposure, bringing peace of mind to trustees and balance sheet protection to the trust itself. Ready to protect your clients and their trust assets? Get in touch with Rokstone to learn more about our enhanced solutions.
