A person can make poor investments and lose their own money without liability. But if you’re a trustee of someone else’s money, you can be liable if you make poor investments. This is true even if all you do is retain the investments exactly as they were when you took over management. So what do most people do? They hire a financial advisor.
We suggest that you do not hire a family member or friend as a financial advisor of assets that you manage for someone else. You are obligated to identify and pursue any claims against the advisor. Suing the advisor who is a family member or friend will certainly strain the relationship, yet failure do sue may make you personally liable.
For a referral to an “independent” financial advisor who is familiar with trust assets, please contact us at 949-833-8891.