Fiduciary Duty: Trustees and personal representatives of an estate are fiduciaries and have certain duties and obligations that must be met. If they breach their duty as a fiduciary, they may be removed from their role and may be personally liable for any losses that they have caused.
The following are examples of some circumstances that may result in the removal of a fiduciary:
Failure to Account. A fiduciary is required to keep and maintain records of an estate or trust. The failure to do so is one of the most common reasons for removal.
Self-Dealing. A fiduciary must put the estate’s interests ahead of his/her own interests. If a fiduciary has taken advantage of his/her position and used his/her power for personal profit, there may be grounds for removal.
Violations of Court Orders/Rules. Whether intentional or unintentional, the violation of court orders, statutory rules or court rules can be grounds for removal.
Family Business Mismanagement. A fiduciary is obligated to act prudently in the administration of the estate. If there is a personal stake or involvement in the business, the fiduciary may not be managing the asset objectively and prudently.
Excessive Compensation. If the fiduciary awards himself/herself an excessive salary or other compensation, he/she may have breached his/her fiduciary duties.
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