Here at The Probate Pro, we litigate issues involving what are referred to a Breach of Fiduciary Duty.
Fiduciaries have legal duties to the estate’s beneficiaries and interested parties. These legal duties include duties of care and duties of loyalty. Violations of these duties may result in civil or disciplinary actions, and it is vital to understand the seriousness of these duties and the implication for violating them.
What is a Breach of Fiduciary Duty?
The Michigan Supreme Court has defined a fiduciary relationship as “a relationship in which one person is under a duty to act for the benefit of the other on matters within the scope of the relationship.” These matters include those in which the personal representative violates the standard of care relating to their duties under the statute in play, to the beneficiaries, devisees, or claimants in the particular matter. An allegation in which the personal representative breached, or “broke” their fiduciary duties to their heirs, devisees, or claimants, can be handled by agreeing to “facilitate”. This agreement entails the resolution of the dispute with the assistance of a professional facilitator.
How to Avoid a Breach of Fiduciary Duty
If you are a beneficiary of a trust or will, you should know what obligations a fiduciary owes you and what constitutes breaches of those duties. Most importantly, hire a competent lawyer to provide sound legal advice throughout the process.
Some common examples of a Breach of Fiduciary duty may include:
- Stealing from the estate
- Self-dealing
- Failing to pay creditors on time
- Not distributing assets according to the terms of the will or trust
- Making financial decisions not in the best interest of the estate and beneficiaries
- Taking money out of the estate for yourself
If you have issues relating to a Breach of Fiduciary Duty, call The Probate Pro at (877) YOUR-FIRM, or visit us at theprobatepro.com.
