Fiduciary duty applies in numerous legal situations, especially during the probate or estate planning process. For example, the personal representative has a fiduciary duty toward the decedent’s estate, which includes the obligations to properly manage estate assets in their care and to organize the distribution of estate property. In addition, trustees must take proper steps to ensure the financial stability of the trust as well as to properly transfer items to the beneficiaries at the appointed times. Failures in either of these examples can create personal liability for the fiduciary.
A Denver breach of fiduciary duty lawyer could help if you believe that a fiduciary has misappropriated or mishandled estate or trust assets. An attorney could provide more information about the rules of fiduciary duty, explain how it applies to probate estates and trusts, and take the lead in protecting your interests.
A fiduciary duty requires one party to act in the best interests of the parties to whom they have a duty. One of the simplest examples of a breach of fiduciary duty is the misappropriation of funds. For instance, if a financial advisor or trustee intentionally puts a client’s funds into its own account instead of distributing it to the proper beneficiary, then the advisor or trustee breached its fiduciary duty.
Breaches of these duties can also occur when a party holds property or assets for the benefit of another. For example, a trustee holding a family home may fail to properly maintain the land and allow the value to drop. Whether a breach of fiduciary duty has occurred often depends upon the nature and terms of the fiduciary relationship. A Denver attorney could help to examine a case to determine if a breach of fiduciary duty has occurred.
A personal representative plays a vital role in the administration of an estate. The probate court empowers these parties with the sole ability to pay debts, collect assets, and distribute property according to the terms of a decedent’s will.
This role is so important that the law creates a fiduciary duty between the representative and the estate. According to Colorado Revised Statute § 15-12-703, the personal representative is required to follow the terms of the will as well as to act in the best interests of the estate. Failure to act according to the duties outlined in this statute may constitute fiduciary violations. The Denver lawyers at Reynolds Gillette are experienced at handling cases where personal representatives have breached their fiduciary duty.
Under Colorado law, a trustee has similar fiduciary duties to those of a personal representative during probate. This fiduciary duty requires a trustee to:
Fiduciary violations leave a trustee personally liable for all resulting damages. Beneficiaries and creditors who believe that a trustee has mismanaged a trust may have the right to seek compensation in court. Our Denver lawyers can help explain and guide you through a breach of fiduciary duty lawsuit.
You must first determine your rights. The Denver attorneys at Reynolds Gillette can investigate the underlying facts, determine the duties owed by the fiduciary, and create a plan to demand and obtain just compensation.
The concept of a fiduciary duty plays a major role in the administration of estates. Personal representatives and trustees must take proper steps to comply with the language of the relevant documents as well as act in good faith to properly manage, administer, and distribute estate or trust property.
Fiduciary violations may mean that these parties are liable for the resulting damage. A Denver breach of fiduciary duty lawyer could help you evaluate the actions of fiduciaries, determine how their failures have impacted your life, and demand proper compensation in and out of court.
Reynolds Gillette LLC