A trustee commits a tort; who is liable?

A trustee commits a tort; who is liable?

• A. The trust bears liability
• B. The trustee's liability depends on fault
• C. The trustee is liable for any tort by the trustee or the trustee's agent
• D. The beneficiaries are automatically liable

Answer: (C)

The key idea is that a trustee, when acting to administer a trust, is a fiduciary responsible for what happens in carrying out those duties. If a tort occurs, the trustee can be personally liable for the trustee’s own conduct and for torts committed by people the trustee hires or directs to help with trust administration (the trustee’s agents). In this setup, the liability attaches to the trustee rather than the trust or the beneficiaries as automatic parties to the tort. The beneficiaries aren’t automatically liable for the trustee’s torts, and the theory isn’t simply that liability depends on fault in every case; it rests on the trustee’s responsibility for both personal wrongdoing and the actions of those under the trustee’s control. That’s why the best choice says the trustee is liable for any tort by the trustee or the trustee’s agent.

The key idea is that a trustee, when acting to administer a trust, is a fiduciary responsible for what happens in carrying out those duties. If a tort occurs, the trustee can be personally liable for the trustee’s own conduct and for torts committed by people the trustee hires or directs to help with trust administration (the trustee’s agents). In this setup, the liability attaches to the trustee rather than the trust or the beneficiaries as automatic parties to the tort. The beneficiaries aren’t automatically liable for the trustee’s torts, and the theory isn’t simply that liability depends on fault in every case; it rests on the trustee’s responsibility for both personal wrongdoing and the actions of those under the trustee’s control. That’s why the best choice says the trustee is liable for any tort by the trustee or the trustee’s agent.