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December 3, 2025

Trust, but Verify: Protecting Your Family’s Future

Why you should safeguard a trust—even from the most trusted estate managers

Summary

  • Trusts are important tools for wealth preservation, privacy, and estate planning—but they’re not immune to theft or mismanagement.
  • Trustee fraud happens more often than many realize and results in significant losses for families, including lost assets and legal fees.
  • Our Trust Placement Solutions can help protect your trust's specific risks. This coverage includes protection against theft by trustees and isn't available through other brokers.

It’s a situation that could shake anyone who has signed their name to a family trust: A Florida attorney admitted to stealing nearly $1.75 million from his client’s trust fund—money that was meant for the client’s children—and gambling away the assets at a Hard Rock Casino. Two beneficiaries who trusted their attorney to protect their late father’s legacy were left with a lawsuit, legal fees, and the heavy burden of betrayal.

Unfortunately, this isn’t an isolated case, and thieves can be some of the closest people to the victims. In Michigan, a man was sentenced to up to 20 years in prison for embezzling at least $400,000 from his father’s trust, which he co-administered. These examples highlight a sobering truth: the people managing trusts may be the ones you need to watch closely.

The Hidden Exposure Behind Every Trust

Trusts are built on the idea of stewardship—the belief that someone will faithfully manage assets for the benefit of others. But with great access comes great temptation. Trustees have duties to manage and disburse assets in trusts. While carrying out their responsibilities, trustees often have access to the trust’s assets without oversight or checks and balances. They frequently have broad authority to transfer funds, liquidate investments, or even sell property. Without proper oversight or insurance, that authority can pose risks.

Why Traditional Insurance Isn’t Enough

Most traditional homeowners or umbrella policies don’t cover theft committed by someone legally managing your assets. While trustees can purchase professional liability insurance to cover mistakes or omissions, this coverage specifically excludes criminal acts such as theft. Carriers have generally been reluctant to insure the level of access to assets and the lack of oversight that comes with being a trustee.

How to Safeguard Your Legacy

At Marsh McLennan Agency Private Client Services (MMA PCS), we recognize that protecting wealth means protecting those who handle it. Our Trust Placement Solutions addresses coverage gaps for high-net-worth families that standard policies don’t cover—helping families and fiduciaries safeguard trust assets for long-term security.

Here’s what sets it apart:

  • Exclusive Trust Crime coverage includes protection against theft by trustees. This new coverage, created by our own MMA PCS risk advisors in partnership with Chubb, isn’t available anywhere else on the market or through other brokers.
  • Trustee liability protection covers legal and defense costs if a trustee is accused of mismanagement, negligence, or errors in judgment.
  • Personalized property and liability coverage provides insurance for trust-held assets such as homes, yachts, art collections, and investment portfolios.
  • Proactive risk management offers alignment of coverage with estate planning goals to reduce costly coverage gaps before they happen.

When it comes to family wealth, the real question isn’t who you can trust—it’s how you protect that trust. Safeguarding your family’s assets requires vigilance, proactive oversight, and the right insurance. MMA PCS helps you understand the risks involved and prioritize transparency and security at every step. With proactive risk management and insurance coverage, you can help protect your family’s future for generations to come. Contact our team today for a personalized risk review to help guide you on the appropriate insurance coverage tailored to your unique needs. 

Request an insurance review with an experienced Personal Risk Advisor to ensure you're adequately insured for whatever life may bring.

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