The fiduciary is also known as the estate executor and in some cases a personal representative. Among other duties when a fiduciary is involved in an estate is implementation of an estate plan through initiating proceeding for reading the plan to the beneficiaries. The fiduciary can act as a personal representative, successor trustee, a trustee as well as a financial advisor. More importantly during process of making an estate plan you need someone worthy to stand in gap and bring the plans to actualization. A fiduciary functions in this important role and as such cannot be excluded from all estate plans and decisions. However, certain instances occur when a fiduciary deviates from him or her assigned roles and desires of the principal. The party who is chosen as the fiduciary owes the legal obligation to the principal, and it is the duty of such party to ensure that no clash of interest emanates between the fiduciary and the principal. A breach of fiduciary usually happen when a fiduciary acts in a way that doesn’t conform to their obligation.
How do a breach of a Fiduciary happen?
A breach of fiduciary occurs only if the fiduciary carries out an act that goes against the wishes or the interest of the principal. Also, a breach of Fiduciary can be regarded as any behavior whatsoever that benefits the fiduciary, or action that is done out of the interest of the principal. It is important to know that, without a fiduciary agreement between two parties, a fiduciary breach can’t occur. There must be an agreement in place first.
When a breach of fiduciary occur, a lawsuit can be filed by the principal. Such lawsuit will only go ahead in a court provided the complainant is able to prove that there was a fiduciary agreement between the two parties where one of the parties chose or accepted to act in the best interest of the other.
Documented must be created to decide a breach of Fiduciary?
It is important to note that a fiduciary duty exists when an individual trust a person to carry out an obligation which could be a certain transaction or something related to his or her affairs; and a breach occur when the fiduciary does something that goes against the interest of the principal. Just like a power of attorney documents that authorizes handling financial and medical decisions for another individual, only when there is a legal document stating the roles of a fiduciary would a fiduciary be able to perform any related duties.
Bottom line
- Fiduciary are personal representation and they are vital to the implementation of estate plan.
- Your personal representation would ensure that your desired beneficiaries gets your estate.
- A document must be created to state the role, duties of fiduciary.
- When a breach of fiduciary occur, a lawsuit can be filed by the principal.
- Without a fiduciary agreement between two parties, a fiduciary breach can’t occur. There must be an agreement in place first.
- Once involved in your estate plan, fiduciary duties involves ensuring that no family feud come up when administering your estate.
- Because it is the duty of the fiduciary to uphold or work in the best interest of the principal, he or she will have to ensure that the property, money of the principal is well managed and protected
- A breach of fiduciary occurs only if the fiduciary carries out an act that goes against the wishes or the interest of the principal.
- Fiduciary may or not may guide you through any probate process should in case involved in estate plans.
- There are several types of fiduciary relationships, and one of them is the common fiduciary relationship that exist between an employer and employee or a lawyer and a client.
- The fiduciary duty of a lawyer to a client in need of legal assistance, the fiduciary duty of a banker to his clients, the fiduciary duty of a trust creator to the beneficiary, the fiduciary duty of a corporate officer to the shareholder, the fiduciary duty of an estate executor to the beneficiaries of an estate.
Our estate lawyer are the best candidate to represent you in the establishment of your estate as well stand in gap as a fiduciary,
Estate planning can be a tough task, depending on how you want your estate to be planned. Ever more complicated is planning it all by yourself. To ensure that your estate is well planned, it is best you contact a professional, one who is quite conversant with estate planning and the estate planning laws.