What is the Trustee’s Fiduciary Duty in Relation to a Trust?
When the grantor sets up a trust, they must name someone as the trustee to execute the terms of the trust. This person will be acting in a fiduciary duty, meaning they owe utmost loyalty to the grantor and will make decisions in the best interests of the beneficiaries. According to California law, “the trustee has a duty to administer the trust according to the trust instrument.”
Fiduciary Duty Relating to a Trust
Some of the trustee’s duties may include:
· Administering the trust according to the grantor’s instructions within the trust document
· Interpreting the grantor’s wishes according to the best interests of the beneficiaries
· Treating all beneficiaries fairly
· Resolving conflicts and showing impartiality
· Avoiding self-dealing or acting in their own self-interests
· Labeling and investing assets within the trust according to the grantor’s wishes
· Carrying out these duties rather than delegating them to another individual
· Reporting regularly on the activities within the trust
Other Forms of Fiduciary Duties
Fiduciary relationships occur in many businesses and transactions. For example, one form of fiduciary duty that many people are familiar with is hiring a real estate agent when buying or selling a home. The agent owes you their utmost loyalty and should represent your interests and protect your privacy.
Another important fiduciary relationship is when business partners agree to honor the other person’s interests in business deals and protect the business’s health. If someone has breached their fiduciary duty, you may be entitled to take legal action. Contact a trusted legal professional to learn how to proceed in your unique situation.
When is Litigation for Breach of Fiduciary Duty Necessary?
If you feel that the trustee has failed to uphold their duties as listed above, you may be entitled to contest the trustee for breach of fiduciary duty. As the trust beneficiary, you have certain legal rights that must be protected. The best way of deciding whether to bring litigation is by speaking with experienced attorneys for trust dispute resolution, like those at Yonano Law Offices, P.C.
Working with a lawyer can help you determine whether the trustee has indeed violated their fiduciary obligations. Your attorney can also help gather evidence to prove that the breach occurred, including that the following critical conditions exist:
· The trustee owed you a fiduciary duty.
· The trustee breached their fiduciary duty by acting in their own interests or failing to protect the trust’s assets.
· The breach of duty caused you or another beneficiary financial harm.
To get excellent legal counsel on how to proceed with a breach of fiduciary duty occurs, please reach out to our California attorneys specializing in trust litigation right away. Our legal team will investigate the matter to ensure that all important evidence is brought to light. You can contact us at 916-894-8790.
What Evidence Do I Need to Contest Someone’s Actions in a Fiduciary Relationship?
Before you can bring a legal suit over a trustee’s actions, you must show that the person owes you a duty of fiduciary care, that they did not fulfill their obligations, and that their breach of fiduciary duty caused financial harm.
Fiduciary duties can be established in several ways, including by contract, statute, or in a confidential relationship. Regarding trusts, the person will be assigned as trustee in the document, providing sound legal proof that they owe you a duty of care and loyalty.
Breach of Fiduciary Obligation
Second, it must be shown that the person violated your trust by failing to fulfill their fiduciary responsibilities. Establishing the breach of duty is essential but can be complicated. If you can show that the trustee benefited from their decisions or was impartial in awarding assets from the trust to beneficiaries, you can use this as evidence of a breach of fiduciary duty.
Hiring a lawyer is one of the best ways to prove that a trustee failed to fulfill their fiduciary obligations. Your attorney should be aware of the laws in El Dorado Hills and investigate thoroughly to uncover the truth about the trustee’s actions.
Harm Resulted from Breach of Fiduciary Duty
Finally, you must prove that the trustee’s actions resulted in financial harm to you or other beneficiaries. Your attorney can advise you on how to go about collecting sufficient evidence to show the court that the trustee violated their fiduciary duty, causing financial harm to those the trust was intended to help.
Can Our Trust Litigation Attorneys Help You?
Dealing with disputes over estate documents can be difficult and even emotional. The trustee appointed by the grantor is probably someone close to the family who should have acted fairly and in the beneficiaries’ best interests.
At Yonano Law Offices, P.C., we understand the complications of contesting a trustee. We promise to work tirelessly to uncover the details behind the trustee’s actions to discover whether they violated California law. We will offer excellent legal counsel on your options and help you determine the best course of action for your family.
When creating, administering, and litigating estate planning documents, we are the allies you want to have standing beside you. We will communicate effectively throughout the process so you understand what is going on and are a full participant in all decisions.
Don’t go through this challenging time alone. You need excellent legal counsel so you don’t have to carry this heavy burden. Rely on our talent, expertise, and honesty to get the results you need. Call today for a free initial consultation at 916-894-8790.