Estate planning involves appointing trusted individuals, such as trustees or executors, to manage assets and fulfill a person’s final wishes. These individuals owe fiduciary duties to beneficiaries, meaning they must act in good faith and in the best interests of those they serve. When they fail to do so, they may breach their fiduciary duties.
Below are some key points to consider.
What are fiduciary duties?
A fiduciary is someone legally obliged to act in another person’s best interests. In estate planning, this role often falls to an executor, trustee or power of attorney. Their responsibilities include:
- Managing estate assets responsibly
- Following the terms of a will or trust
- Avoiding conflicts of interest
- Communicating with beneficiaries
Common breaches of fiduciary duties
A fiduciary breach occurs when an executor or trustee violates their legal obligations. Common breaches include:
- Mismanagement of assets: Failing to protect or properly invest estate funds
- Self-dealing: Using estate assets for personal gain
- Failure to follow the will or trusts: Ignoring legal instructions
- Lack of communication: Withholding key information from beneficiaries
- Negligence: Making reckless financial decisions that harm the estate
Legal options for beneficiaries
In California, beneficiaries can take legal action if a fiduciary fails in their duties. They may:
- File a petition in probate court to remove the fiduciary
- Request an official review of financial records
- Sue for damages if the estate suffers financial harm
A fiduciary who breaches their duties can face personal liability and even legal penalties. If you suspect misconduct, seeking legal guidance can help protect your rights and the estate’s assets.