Legal Question in Wills and Trusts in Ohio

Re: trust fund

The Trustee's investments are governed by two things:

1. Ohio law, if applicable.

2 Investment powers granted in the Trust instrument.

The mere fact that an investment lost money is not enough. The investment must be one not permitted either by the trust or by law, or one not appropriate for the trust, or one which the reasonably prudent person would not make with his own funds, before the Trustee is liable.

Re: trust fund

Yes, if the investment was not entered into responsibly. A trusee has a fiduciary duty not to be reckless with trust funds since they exist for the purpose of beneficiaries. Bonding indicates that there's insurance that may cover for losses incurred by the trustee, even when sued.