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Central Texas | Ben
The trust, if properly structured should be a separate legal entity so is imperative to have it's own separate liability policy even if it only owns land. As there are several types of trusts, how it is structured could have an impact on it's exposure. Need to consult an attorney to make sure any leases are structured to insulate the trust as much as possible from all liability exposures. Even if land is leased to and operated by a tenant (family or non family) the trust could still have liability exposure so needs it's own separate liability policies. Would at least buy the max Farm Bureau will write for the trust ASAP. If they won't write high enough limits to cover total value of trust, would suggest at least contacting independent insurance broker to see what they can offer for even higher coverage limits. Even with a properly structured lease agreement, there could be incidents where a creative lawyer could drag the trust into a lawsuit and imperil the trust assets.
Even if most of assets are in trust, all individuals need at least enough of their own separate coverage to cover the value of their personal assets with a minimum of 1 million. Today a single high income person who is severely injured in a collision with an escaped cow could blow thru 1 million in medical bills, lost income plus pain and suffering in a very short time.
It's sad things have gotten to this point, but can't stress enough to have high enough liability limits to protect one's hard earned assets. Otherwise all could be gone in an instant if tragedy strikes. | |
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Insurance question
