Breach of Fiduciary Duty Attorney in Ohio

The Fiduciary Duties of Trustees and Executors

Determining signs of breach of fiduciary duty requires legal astuteness and vigilance on the part of the principals. Understanding what counts as a breach of fiduciary obligations is also essential. Recognizing these cases early and resolving them quickly can help mitigate potential losses.

Fiduciary duties lay out the parameters within which a trustee or executor exercises the powers conferred by the terms of a trust or estate. These responsibilities dictate how they manage these financial instruments.

The responsibilities exist to ensure administrators act in the best interests of the principals. These control persons have three primary fiduciary duties: duty of care, loyalty, and good faith.

The obligation to care requires a trustee or executor to act after considering all the information available to them and to give a trust or will their full personal attention.

An administrator should refrain from outsourcing estate management to third parties. They can rely on legal and financial advisors but do so with a keen eye. In addition, they must keep a code of confidentiality regarding a trust or will. The only exception is when the law requires them to disclose specific information.

The duty of loyalty requires trustees or executors to use their positions to further only the interests of the beneficiaries or clients. As such, they must fulfill all the provisions of a trust or will as the creator intended, not for their advantage. Control persons should act unselfishly to accomplish the requirements of the financial instruments.

The duty of good faith dictates that control persons exercise prudence in making decisions related to trust or estate management. This means trustees and executors must act competently and reasonably on matters related to the financial instruments they oversee.

Prudence is a necessary standard of conduct in financial relationships. It requires control parties to make investment decisions that are in the best interests of the principals.

Trustees and executors are also accountable to beneficiaries. They are responsible for explaining their decisions when fulfilling the provision the creator outlines in the documents.

Fiduciaries have an obligation to be transparent and provide information in a timely manner to beneficiaries. They are also required to keep accurate and updated records related to trust and estate assets.

Finally, administrators have an obligation to be impartial. They must treat all beneficiaries equally and fairly. In case of conflicts of interest, the control party should refer to the creator’s wishes, not their personal biases.

Trustees and executors also have other specific duties. These include preparing an inventory of trust or estate assets, describing classes, and valuing them—other responsibilities related to handling creditors and filing taxes.

You can consider certain acts that go against the above responsibilities to be a breach of fiduciary duty. Overall, looking out for primary misuse of assets, self-dealing, and misconduct would be best. For instance, trustees may invest trust assets in their or a related third party’s businesses. They may also sell trust assets to themselves at deflated prices.

Receiving unreasonable or undisclosed commissions or fees from the trust or estate damages fiduciary obligations. The same is the case where a trustee favors particular beneficiaries or clients contrary to the provisions of a trust. The same applies to not providing requested information or disclosing potential conflicts of interest.

Is Breach of Fiduciary Duty a Crime?

If you are in a position of trust in a financial relationship, you can face criminal charges for breach of fiduciary duty. There are some cases where laws consider it a financial crime. If a fiduciary intentionally causes their client to incur financial losses, various charges can be brought against the control person. These include:

• Fraud – if an administrator makes misleading or false statements to a beneficiary to get them to authorize various transactions or decisions.
• Forgery – if an executor issues fake checks in a beneficiary’s name or without informing them and getting their consent
• Embezzlement – if a control person transfers funds from trust or estate assets to their accounts or related third parties. Depending on the case specifics, the courts may apply money laundering or conspiracy charges. In addition, if embezzlement involves multiple parties in a complex scheme, RICO Act violations can be used.

If a trustee or executor is convicted of a financial crime involving breaching fiduciary obligations, the court can order them to pay restitution. This is typically part of sentencing for cases where the courts can determine the dollar amount of the losses involved.

In other instances, it can lead to jail terms with penalties of up to 30 years. This may be the case if elderly or disabled adult abuse is involved and the financial losses are significant. As such, legal advice and representation is critical.

How a Competent Attorney Can Help You

You may suspect wrongdoing on the part of a trustee or executor. These control persons may also be failing at their duties to fulfill the provisions of the instruments they manage.

As a beneficiary, you can sue a fiduciary in civil court. However, there are other options. Mediation is a viable alternative since litigation is a complex process that can be costly, stressful, and time-consuming.

Nonetheless, if mediation and other resolution avenues fail, your only option may be litigation. If this is the case, enlisting the services of a reputable fiduciary duty attorney is crucial. These lawyers protect your interests by providing expert counsel through the complex legal disputes surrounding fiduciary responsibilities.

Legal guidance is essential to safeguard fiduciary interests. The best lawyers understand fiduciary obligations and the associated legislature. Fiduciary duty attorneys are adept at navigating the nuanced financial and jurisprudence landscape and can help you define the course of any allegations.

A lawyer can help you formulate sound strategies, including filing a claim for breach of fiduciary duty. These cases often involve legal intricacies that require an expert with in-depth legal acumen. A competent breach of fiduciary duty lawyer leverages a unique set of expertise to unravel complex issues that can move you toward a successful resolution.

An attorney lays the groundwork that facilitates shrewd decision-making throughout such cases. The services of a breach of fiduciary duty lawyer can be especially valuable when complex claims arise. They can help you collect evidence, including documents and witness testimonies, to support your claim.

To ensure you have a case of breach of fiduciary responsibility, attorneys consider three key elements. First, a fiduciary relationship created by law or contract must exist.

Secondly, a breach of the duties must have occurred. You have to prove that a breach occurred and the defendant acted against the provisions of the financial instruments. Finally, you must prove that you suffered damages or incurred losses because of the breach.

There are various legal remedies an attorney can help you achieve to address the risks associated with violations of fiduciary obligations. These may include injunctive relief, restitution and damages, and accounting. For instance, the courts can order a trustee or executor to perform certain acts, such as providing full transparency and information about asset mismanagement.

You can also pursue litigation to suspend the administrator’s powers pending the case results. This is important to prevent further losses or damages. You may also file to remove a party from a position of trust. This action includes contesting the appointment of a particular party as trustee or estate administrator. Litigation can also enable you to appoint successors to the positions.

On the other hand, if you are a fiduciary, a lawyer can offer valuable guidance regarding your responsibilities. These professionals bring trust and estate planning expertise that many fiduciaries often lack. This can help you fulfill your obligations and avoid possible litigation.

More importantly, they can help you formulate a strong defense against a claim filed by principals. If you are facing litigation, it is essential to seek legal counsel immediately. Civil courts take breach of fiduciary responsibility seriously, and cases can lead to damage awards or even criminal convictions. Legal advice from a reputable attorney can help you navigate accusations from beneficiaries.

The Best Breach of Fiduciary Duty Attorney

Finding the right breach of fiduciary obligation lawyer is crucial to protecting your interests as a principal or fiduciary. A skilled and experienced attorney specializing in the field can navigate the complexities of such cases. This is where Hess-Verdon & Associates comes in.

We are one of the leading trust and estate law firms in California. We offer unmatched legal counsel and guidance on trust and estate planning cases to help you get favorable outcomes.

Our extensive industry experience, client-centric approach, and proven track record make us the go-to partner for fiduciary duty California cases. Call us today or complete a web form to learn how our legal experts can help your case.