![]() Mismanagement occurs when the fiduciary fails to manage the property or assets in a competent manner. Mismanagement is one of the most common breaches of fiduciary duty. For instance, if a fiduciary uses trust funds to purchase property that the fiduciary owns, it is likely that they have engaged in self-dealing. For example, if a fiduciary is trusted with funds to invest and chooses to invest in their own business ventures, this is typically a breach of their fiduciary duty.Īnother common example of self-dealing involves the purchase and sale of real estate. So, what is self-dealing? It is when a fiduciary uses their power over the property to benefit themselves-usually at the expense of the beneficiaries or heirs. When a fiduciary engages in self-dealing, it is likely that they have breached their fiduciary duty. Below, we talk about some of the most common signs of a breach of fiduciary duty. Breach of Fiduciary DutyĪ breach of fiduciary duty occurs when the fiduciary fails to act in accordance with the high standards that are placed upon them. And, when a fiduciary breaches one or more of their duties, there can be serious legal consequences. Each of these individual duties falls under the umbrella of fiduciary duty. When a fiduciary relationship is triggered, the person who has the power over the property, or the fiduciary, owes a fiduciary duty to the individuals that they are acting on behalf of.Ī fiduciary’s duties include the duty of care, loyalty, diligence, and honesty. The most common fiduciary relationships include the following: In the context of estate law, a fiduciary relationship is triggered when a person is granted the power to control and dispose of estate property for the benefit of another. First, What Is a Fiduciary Duty?įiduciary duties arise through a special type of legal relationship called a fiduciary relationship. He has helped numerous clients effectively manage the estate that has been entrusted to them, and he can help you. Our principal attorney, Andrew Lamkin, has over a decade of experience dealing with trust and estate issues. ![]() Lamkin, P.C., our team of legal professionals can help you navigate the legal world of trusts and estates and help ensure that you follow the proper procedures. The laws surrounding trusts, wills, and estates can be very complex, and there are significant consequences if you violate these laws.Īt the Law Office of Andrew M. However, before diving into the meaning of fiduciary responsibilities, we want to advise you that it is best to seek the advice of an estate planning attorney before you act in your official capacity as an estate manager. Therefore, we are going to go over some of the basics today to help you get a better understanding of the term and its associated responsibilities. Have you recently been appointed the executor, trustee, or administrator of an estate? If so, you may have been presented with the term “fiduciary duty.” And you may wonder, What is a breach of fiduciary duty? It is understandable that this term is unfamiliar to you if you have never been appointed to manage an estate before.
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