What constitutes a breach of a fiduciary duty?
Grounds for a removal of fiduciaries are usually based on the fiduciary’s conduct during the administration of an estate or trust. A breach of fiduciary duty exists when an individual or entity abuses, acts fraudulently, or fails to act within a due standard of care. The removal of fiduciaries can be a difficult process and following are circumstances that may require removal of a fiduciary:
- Failure to Account: One of the main reasons for the removal of a fiduciary are failure to keep and maintain records of an estate or trust.
- Self-Dealing: The fiduciary has taken advantage of their position and used their power for personal profit (ex: making loans to him or herself).
- Violations of Court Orders/Rules: The conduct of a fiduciary is subject to Nevada court rules and procedures. Fiduciaries can be removed for either an unintentional or intentional violation of court orders, statutory or court rules.
- Family Business Mismanagement: A fiduciary or executor is obligated to act prudently in the administration of an estate or trust. Fiduciaries often have a personal stake or involvement in the business and if this position is mismanaged it may require the fiduciary’s removal.
- Excessive Compensation: A breach of fiduciary duty may also be violated by the fiduciary awarding themselves an excessive salary and/or compensation to him or herself
When a trustee of a trust or personal representative of an estate fails to act appropriately, the fiduciary may be held personally liable for breach of their fiduciary duty. Fraud or abuse may involve financial assets, personal property, or illegal real estate transactions.
Whether you are seeking to defend a fiduciary, remove a fiduciary, or are a victim of breach of fiduciary duties, our Las Vegas probate attorneys will provide you with the experience to develop a solid strategy, protect your legal rights, and determine the appropriate measures to take.