Banks and Trusts

[macflyer]

What is the name of your state? What is the name of your state? Ohio

My mother opened a trust account with a large bank four years ago. Currently, the account has lost approx. 100K. The financial specialist assigned to her account has done nothing to protect her assets, no selling of losing funds, moving into cash or bonds, nothing.
Since this is an administrative trust account, does the bank have any liability for failure to protect her funds?

 

[vrzirn]

Unless you can prove the trustee violated his fiduciary responsibility by moving assets into risky investments or unecessary churning of the account there is nothing you can do. Our stock market has suffered severe losses and millions of people are in the same boat. The only thing safe is a 2% CD and even that is a loss because inflation is even more. Bonds ride with the interest rate and are not as safe as you think.
If you consider the loss as a percentage of the overall investment, the 100k may only be 12-15 %. For most investors that would sound like staying out of big-time trouble
Meet with the trustee and your mother to review all the accounts. Perhaps a financial planner should do an independant review. Personally, I hate banks as trustees. You would do better with a reputable house like Legg-Mason.
Good luck.

 

[macflyer]

Well, it never hurts to ask. But thanks for the advice. I have an appointment for Friday!