How Serious Is a Breach of Fiduciary Duty? | RMO Lawyers

A fiduciary duty is one of the most demanding obligations that exists under the law. It requires a person in a position of trust and confidence, such as a trustee, executor, administrator, or personal representative to act with utmost good faith and loyalty towards the beneficiaries of the trust or probate estate they are administering. A fiduciary must always put their beneficiary’s interests first and foremost before anything else, including themselves. Trustees and executors can breach their fiduciary duty through fraud, conflicts of interest, self-dealing, or failure to disclose relevant facts related to the administration of a trust or probate estate.
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Because of the fiduciary duty owed by trustees and executors, they are legally obligated to:
Place all beneficiaries’ interests above their own.
Always act in good faith.
Treat all beneficiaries fairly with honor and care.
Act honestly, fairly, and reasonably.
Remain transparent about all relevant, material information.
If a fiduciary fails to comply with these responsibilities, they may have breached their fiduciary duty. In the case of an executor or trustee, a breach of fiduciary duty may result in their suspension, removal and/or a surcharge - a court order requiring them to pay money damages for the harm caused by the breach. In the rarest of cases, fiduciaries can face criminal charges.
What is the penalty for breach of fiduciary duty?
The most frequent penalties for breach of fiduciary duty include suspension or removal as trustee or executor and the payment of money damages, attorney fees, and court costs.
When it comes to money damages, fiduciaries who violate their duties may be ordered to pay compensatory damages, punitive damages, or double or treble damage. Compensatory damages are intended to make the injured beneficiary “whole” again after the breach. In other words, this type of damages reimburses the trust, estate or beneficiary for the money they lost as a direct consequence of the fiduciary’s breach of duty.
On the other hand, punitive damages serve to punish the fiduciary for their wrong actions by requiring them to pay an additional amount of money on top of the compensatory damages.
In some situations, double and treble damages may be available as statutory remedies that double or triple the amount of compensatory damages the fiduciary must pay under certain laws.
In addition to damages, the fiduciary may be required to reimburse the beneficiary for the fees and costs incurred due to the legal action the breach forced them to take. This includes attorney fees, expert witness fees, filing fees, and court costs.
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RMO LLP serves clients in Los Angeles, Santa Monica, Orange County, San Diego, Kansas City, Miami, and communities throughout California, Florida, Missouri and Kansas.
Our founder, Scott E. Rahn has been named “Top 100 - Trust and Estate Litigation” by SuperLawyers, Trusts and Estates Litigator of the Year, and Best Lawyers in America for Litigation

[@SuperBrowndog1]

My advice to everyone is; if you want someone to have money or anything from your estate, give it to them NOW, while you're still alive. Don't wait and leave it to criminals and dishonest family members, they will take it all!!!

[@redfritz3356]

That's true, but in South Africa, you have to pay 20% gift tax.

[@jimmoravec1326]

That’s a fact

[@SuperBrowndog1]

My sister convinced my mother to add her as joint onto her bank account. When my mother died, I was named as a beneficiary of 80k dollars but because the money was not put into a trust account, my sister kept all of my inheritance. My sister was the Power of Attorney and Successor of the Trust. She stole my entire inheritance and attorneys are saying "nothing you can do."

[@jamesriley889]

That's horrible. I am So sorry for you :(

[@kcw1879]

I am a caregiver. The gentleman I caregiver for has an executor that is a friend; and had a professional fiduciary added for him by his lawyer as a backup (a total stranger to him). His friend is now 72, and may have to bow out of the situation. I have delt 3 times now with the backup fiduciary financially, and all 3 times, she has "accidently" made mistakes that gave her almost double the money. I pointed out the mistakes every time, and she has backed off and/or refunded the money. But I am VERY concerned what happens if/when she becomes completely in charge of the guy I take of off's estate and monies. I mean, I don't think I'll even be able to see anything she does after that, let alone check for "mistakes".

[@basicprogrammer6147]

My own mother is destroying her 4 children. My father wrote a will and pointed to a trust he and my mother created. He died. My mother has been crushing her children and their families for years. So, one thing in life: family is the worst.

[@ajaygill1029]

maybe its just ur family. think about that before u tell somone that family is worthless. and y dont u go start ur own family then c how u do.

[@jessekrasno1912]

Univest Trust and Financial Services!!!!!!!!!

[@valeriesittle6198]

Everyone always advises to get a good lawyer but that's not good advice. The lawyer will do as little work as possible for high fees and only have their own financial best interests in the litigation process. I would advise to be your own lawyer and educate yourself about wills, trusts and probate procedures. Lawyer's take advantage of clients by doing things that they know they can get away with on how the courts operate.

[@BowtieLegacy]

Petnr seeks to reclaim three of decd's assets: a) approximately $8,000,000 of foreign currency held by Decedent, individually, at a Swiss bank just prior to and after Decedent’s passing; b) R/P at 301 Redlands Street, Playa Del Rey,; and c) R/P at 151 Napoleon Street, Playa Del Rey, - all of which were removed from Decedent’s estate by such persons using fraud.

[@JudgeCommitee-ck5wq]

This is why Nicer arbiter validated inheritances and bank certified legacy funding makes sense to interdict quit claim jumpers, crawling out of the woodwork with equity elder abusing DIY RLT durable power of attorney title deed thieves,

[@trackmastersdj]

My family has a pending Trust dispute case in Florida against a bad Trustee who stole everything. The person who was financing our lawsuit seems to have run out of money (after spending possibly around $300,000 so far). What are our options? We looked for a Trust litigation attorney who will take the case on contingency, but none of them will do that. It's such a difficult situation to be in. The decedent left his beneficiaries equal shares, but the bad Trustee stole everything at the last minute (through Undue Influence & Lack of Capacity of settlor's elderly, surviving spouse). What should be our next move here? Our attorney withdrew from the case recently and we're unable to find another one. Can you recommend a top (South Florida) Trust litigation attorney who will take the case on contingency?

[@terryberry6735]

Wish you successful outcome ..

[@stevenhall8129]

Did you ever find one?

[@trackmastersdj]

@@stevenhall8129 No. Why?

[@jimmoravec1326]

Hiring an attorney for contingency payment is a bad idea. They do not give you full representation, what you will get is an attorney who will put in the very least amount of effort to get the case settled with the least amount of time he or she has to spend on your case. Contingency attorneys push their clients to settle for whatever you are offered. I know where you’re coming from and it’s wrong how people can completely take advantage of situations. You had a previous attorney ? If so I would assume that there has already been an affidavit filed with the probate judge. If that’s the case then the ball is rolling so start filing complaints and get it into court

[@conniehenderson7071]

Chad Brocato

[@basicprogrammer6147]

If there is no jail time, then why wouldn't a fiduciary who is punished simply not pay? Could the courts seize her bank accounts?

[@ajaygill1029]

all assets will be seized until the damages are paid.

[@jillspady6450]

How serious is taking $60-100k?

[@baseball3106]

Very serious lol… They can get sued for everything they have and then looose everything over their stupidity…

[@jamesriley889]

Apparently the thieves Can get away with No Penalties! Read all the comments.

[@SuperBrowndog1]

I'm not sure about other States, but here in California the laws don't protect people who inheritance is stolen. There are literally so many ways someone can steal from an estate and get away with it, that's why it happens so often and without consequence. And that's why I say "give it to them while you're still alive, don't trust anyone, once you're gone you're beneficiaries may never see a penny." That family member who you think is honest and good will show a very different side when money is involved.

[@onelife7247]

Agreed. You really don’t know a person until: i) You know what they want from you ii) there’s a disagreement