In today’s world personal responsibility for savings, investment, and retirement is increasingly put on individuals. Meticulous care must be taken to not only protect investments for your lifetime, but also to ensure that the assets and property are distributed according to your wishes after your passing. While it can be difficult to confront our own mortality and even consider a day when we may be unable to handle our own affairs, careful planning can often reduce the likelihood that disputes will arise in the administration of your estate due to perceived or actual improper action by a trustee or personal representative. However, despite the fiduciary’s obligations, disputes can arise whether they are due to mistake, oversight, a misunderstanding of obligations, or intentional action.
The Heyman Law Office can address disputes that occur during the probate process or in the administration of a trust. Mr. Heyman is a litigator with more than 20 years of experience who can address all forms of fiduciary litigation. As the situation requires, he or another member of the legal team can defend the actions of a trustee or administrator by explaining how his or her actions satisfy the fiduciary obligation. Similarly, in scenarios where a trustee or administrator may act improperly, Mr. Heyman can fight to protect the interests of beneficiaries of the trust or will. Finally, Mr. Heyman has experience in will contests, known as caveat proceedings, when there is a dispute among beneficiaries concerning the validity of a will or amendments to a will. To schedule a confidential litigation consultation call (410) 305-9287 or contact us online.
What is a Fiduciary Duty and How Does it Impact the Administration of an Estate or Trust?
A fiduciary duty is the highest duty of care that can be held and owed to a person or entity. As a fiduciary, the person holding the duty must show extreme and unwavering loyalty to the pursuit of interests of another. A fiduciary must put the interests of his or her client first and is not permitted to pursue his or her interests or any other interest at the expense of whom the fiduciary duty is owed. Fiduciary duties commonly arise in the financial industries when an individual oversees assets, investments, or property. The fiduciary duty is also common in the legal industries. In fact, a lawyer owes a fiduciary duty to his or her clients. This is one reason why lawyers are so diligent in checking for conflicts that may affect his or her representation of an individual.
The same duty arises for the executor or administrator of an estate and for a trustee. In these capacities they must act as a fiduciary. As fiduciaries they must solely adhere to the interests set forth in the will or trust. This means that the trustee of a trust has a fiduciary duty to protect the interests of the beneficiaries as well as the trust or estate. Furthermore, the administrator or trustee must ensure that he or she is free from other obligations or interests that could give rise to potential conflicts. Even when improper action does not occur in the mind of the trustee or administrator, the presence of conflicts can color the actions of the fiduciary potentially giving the appearance of improper action. A trustee is also obligated to make full and complete disclosures regarding dealings
When has a Breach of the Fiduciary Duty Occurred?
Breach of a fiduciary duty can occur when a fiduciary elevates their own interests, or an outside interest, above those of the trust, estate, or beneficiaries. A breach can also occur when a trustee fails to protect the interests of all beneficiaries of the entity. Likewise, a trustee whose actions run counter to the duty to preserve a trust’s property and assets and make it productive has also likely committed a breach.
When a breach has occurred, there are a number of remedies available to protect the trust and the interests of its beneficiaries. Potential relief that a beneficiary can request from a court includes:
- An order to compel the trustee to perform some action to satisfy the trustee’s duties.
- An order enjoining the trustee from taking certain action in breach of his or her duties.
- An order requiring the trustee to remedy a prior breach.
- An order requiring an accounting of the trust.
- An order suspending or removing the trustee and appointing a new trustee.
An array of other equitable relief is available and furthermore, a trustee can be liable to a trust for profits if not authorized even in the absence of a breach.
Experienced Maryland Litigation Lawyer Handles Fiduciary Litigation
Mr. Heyman can analyze the facts and circumstances surrounding a particular claim against a trustee or administrator. Mr. Heyman can fight for a trustee and show how the action or lack of action is in accord with the trustee’s fiduciary duty. Mr. Heyman can also pursue and advance claims by beneficiaries when a trustee’s actions are in violation of his or her duties. As an experienced litigator who served as outside Estates & Trusts counsel for one of the largest banks in the country, Mr. Heyman uses his knowledge to pursue a balanced approach to all fiduciary issues and uses a strategic methodology regardless of whether he is representing the trustee or beneficiaries. To schedule a confidential legal consultation, call the Heyman Law Office at (410) 305-9287 or contact us online.