What type of liability do co-fiduciaries share?

Co-fiduciaries share joint and several liability, meaning that each fiduciary can be held fully responsible for the actions of all co-fiduciaries when managing the same trust or estate. If a breach of fiduciary duty occurs, any co-fiduciary can be pursued for the full extent of the damages, regardless of their individual involvement or contribution to the breach. This principle serves to provide a level of protection to beneficiaries, ensuring that they can recover damages even if one fiduciary is unable to fulfill their financial obligations.

This type of liability encourages co-fiduciaries to act diligently and collaboratively, as they are collectively responsible for the actions of the entire group. It emphasizes the importance of communication and accountability among fiduciaries, as neglect by one can expose the others to liability.

In contrast, limited liability would imply that a fiduciary’s responsibility is capped or restricted under certain conditions, which is not applicable here. Individual liability would suggest each fiduciary is responsible only for their own actions, rather than sharing responsibility for collective actions. No liability would indicate that fiduciaries are exempt from any responsibility, which is not the case in fiduciary relationships.