What is a “Breach of Fiduciary Duty?”
When someone is trusted to manage another person’s assets or make decisions on their behalf, they’re held to a high standard of care. This responsibility is called a fiduciary duty, and it’s a big deal, especially in probate law. But what happens when that trust is broken? That’s where the concept of a breach of fiduciary duty comes into play.
The Heart of Fiduciary Duty
Imagine you’ve appointed someone to handle your estate after you pass away. This person, the executor, is supposed to manage your assets, pay off any debts, and ensure your beneficiaries get what they’re entitled to. This role comes with a heavy responsibility; they must act in the best interest of the estate and the beneficiaries, not for personal gain.
This relationship isn’t just limited to executors. Trustees, guardians, and other individuals in similar positions of trust are all considered fiduciaries. They must manage someone else’s assets or make decisions that impact another person’s well-being. The core of fiduciary duty is loyalty, honesty, and the commitment to act in the best interests of those they serve.
When Trust is Broken: What Constitutes a Breach of Fiduciary Duty?
A breach of fiduciary duty occurs when a fiduciary fails to live up to the responsibilities of their role.
This can happen in many ways, some of which are obvious, while others are more subtle.
For instance, if a trustee is responsible for managing a trust fund for a family and starts making risky investments that aren’t in the best interest of the beneficiaries, they could be breaching their fiduciary duty. Similarly, an executor who fails to properly account for the estate’s assets, perhaps by hiding information or mishandling funds, could also be in breach.
It’s important to note that not all breaches are intentional. Sometimes, fiduciaries make mistakes or overlook important details. Maybe they didn’t understand the full scope of their duties, or they were simply negligent. Even without bad intentions, these actions can still harm the beneficiaries and may be considered a breach of fiduciary responsibility.
Why Does Breach of Fiduciary Duty Matter in Probate Law?
In probate law, the breach of fiduciary duty is a significant concern because it directly impacts the distribution of a deceased person’s assets. When a fiduciary doesn’t fulfill their responsibilities, it can cause financial loss, delays, and even legal battles among family members. The ripple effects of such breaches can be far-reaching, straining relationships and complicating what is already a difficult time.
Imagine an executor withholds information from the beneficiaries, such as not disclosing all the assets or mismanaging the estate funds. This kind of breach not only leads to financial losses but can also result in deep mistrust and conflict within the family. Legal action may become necessary to address the violation and ensure that the beneficiaries receive what they’re entitled to.
Taking Legal Action: What Can You Do if a Breach Occurs?
If you suspect a breach of fiduciary duty has occurred, it’s crucial to act quickly. Beneficiaries or other interested parties may seek legal action to address the breach and recover any losses. This could involve filing a lawsuit to remove the fiduciary from their role, seeking financial compensation, or taking other legal steps to protect the estate.
The court takes breaches of fiduciary duty seriously. In some cases, fiduciaries found guilty of this may be required to repay the losses they caused, and they could face penalties or other legal consequences. The goal is to hold the fiduciary accountable and ensure that the beneficiaries’ interests are safeguarded.
How Attorney Suzanne R. Fanning Can Help
When facing a breach of fiduciary duty, having an experienced attorney on your side is invaluable. Attorney Suzanne (Suzy) R. Fanning brings over 20 years of legal expertise, with a deep focus on probate law. She understands the complexities of fiduciary relationships and knows how to navigate the legal challenges that arise when a breach occurs.
Whether you’re a beneficiary concerned about how an estate is being managed or a fiduciary facing accusations of a breach, Suzy and her team can help you make sense of the situation. They will work closely with you to assess the facts, determine the best course of action, and advocate for your rights every step of the way.
Talk with Our Skilled Michigan Litigation Team About a Breach of Fiduciary Duty
Dealing with a breach of fiduciary duty can be overwhelming, but you don’t have to go through it alone. If you suspect a breach or need advice on your responsibilities as a fiduciary, we invite you to contact our law office for a case consultation. Our knowledgeable legal team is here to provide the guidance and support you need to protect your interests and resolve complex legal issues.
