If you been named as a successor trustee of a living trust, asking about your potential risks and liabilities of performing that role is a perfectly normal and sensible question to ask. People make mistakes sometimes that are not done intentionally so it is reasonable to want to shield yourself from the fallout from an unintentional failing in fiduciary duty.
California law does allow for what is called an exculpatory clause to be written into the trust instrument by the testator. Using such a clause can absolve the trustee of liability for committing errors in the trust administration. However, California law sets limits on the kind of mistakes that a trustee can commit. Clauses that relieve a trustee of liability for intentional and reckless indifference of the beneficiary's interest or profits gained from a breach of trust are not allowed.
For more information on creating a trust and administering that trust, please consult with a professional estate litigation Attorney.
*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.