What Is a Breach of Fiduciary Duty?
So, what is a breach of fiduciary duty?
In the case of a Florida trustee, or a personal representative, a breach of fiduciary duty is an accusation suggesting that a fiduciary was not performing the legal obligations expected of them in the management of a trust or an estate.
A breach of fiduciary duty occurs when one party’s position or action breaches a duty of trust owed to another. A breach of fiduciary duty is a serious legal accusation that occurs in the management of a trust or an estate.
Florida law includes a trust code that outlines specific duties and actions that trustees are required to follow as fiduciaries.
A fiduciary is a person with the power and legal obligation to act on behalf of another person or entity in situations requiring trust, honesty, and loyalty.
Examples of a Breach of Fiduciary Duty
Here are examples of a breach of fiduciary duty by a trustee or personal representative:
- Asking for unreasonable compensation
- Trying to profit from the position
- Failing to respond to requests for information by beneficiaries or other parties involved.
- Failing to distribute funds in a timely manner
- Investing assets poorly
- Negligent asset management or incorrectly valuing assets during trust administration
- Taking assets without approval
- Self-dealing assets or transferring assets to yourself from an estate
- Failing to properly account for financial activities
Know Before You Agree to Be a Fiduciary
If you are a trustee or a personal representative who is breaching a fiduciary duty without knowing it, you may still be guilty of a breach of fiduciary duty.
When you accepted the role as trustee or personal representative you signed legal documents agreeing to do certain things, and not to do other things.
Bloodworth Law Represents Defendants and Plaintiffs
Florida attorney L. Reed Bloodworth is Founder and CEO of Bloodworth Law, PLLC with offices in Orlando and Winter Haven. Reed and the attorneys at Bloodworth Law represent defendants and plaintiffs in Trust Litigation and Estate Litigation.
Reed is a 2021-22 U.S. News and World Report Best Lawyer® in Trusts & Estates Litigation and handles legal disputes including a breach of fiduciary duty.
Bloodworth Law represents trustees, grantors, beneficiaries, financial institutions, banks–any individual or entity involved in a Florida trust dispute.
Bloodworth Law also represents beneficiaries wishing to remove a personal representative or a trustee in cases where they’re accused of wrongdoing.
Whether you’re facing a breach of fiduciary duty as a plaintiff or as a defendant, give Bloodworth Law a call to find out whether Bloodworth Law can help you, or your family.Consider sharing this post