When someone appoints an executor or trustee, this signals tremendous confidence in their ability and integrity. However, sometimes an executor or trustee is not suitable for this position, or does not fully understand his/her/their responsibilities. When a person does not fulfill their obligations as a trustee or executor, this is considered a breach of fiduciary duty, and contacting a premier trust attorney is crucial to preserving the estate or trust. Here is what to know about the penalty for breaching this duty:
What is Fiduciary Duty?
A trustee or executor has significant responsibility when overseeing a trust and must maintain the highest standard of care when they have this position. This duty begins the moment someone accepts the responsibility of being a trustee or executor.
The trustee or executor must execute the wishes of the person who created the estate planning instrument per the document, whether it is a trust or will, and make decisions for the benefit of the trust. Essentially, you can define fiduciary duty as a legal obligation to:
- Administer the trust or estate per the estate planning instrument
- Prioritize beneficiary interests over their own
- Maintain reasonable control over and preserve a trust or estate’s property
- Always act in good faith and with integrity and loyalty to the trust
- Treat beneficiaries with impartiality and respect
- Maintain transparency about all relevant information
When a trustee or executor fails to abide by these responsibilities, it is considered a breach of fiduciary duty, and consulting an expert trust attorney is imperative to preserve the integrity of the trust or estate.
What Constitutes a Breach of Fiduciary Duty?
A trustee or executor breaches this duty when they knowingly breach their responsibilities, are unaware of their duties, or cannot perform them.
If a trustee or executor breaches their duties, there is a risk of criminal actions and/or significant financial liability. Working with a preeminent trust attorney is essential. Several situations constitute a breach of duty. Some examples include:
- Uses the trust or estate’s property for their benefit or financial gain
- Requires beneficiaries to waive the fiduciary’s liability
- Operates with a conflict of interest
- Fails to fulfill their duties and obligations
- Does not administer the trust or estate per the instrument
- Engages in activities that endanger the trust or estate
- Fails to disclose pertinent information to beneficiaries
Still, there are innumerable situations that the courts consider a breach, and only an expert trust lawyer can help you determine how to prove a breach of duty and your legal recourse.
What are the Consequences of a Breach of Fiduciary Duty?
The most common penalty for a breach of fiduciary duty involves suspending or completely removing the trustee or executor, having them pay attorney fees and court costs, and having them return any stolen property.
However, there can be more extensive and severe consequences. Depending on the situation, a trustee or executor may be liable to pay compensatory damages, which means reimbursing the estate, trust, or beneficiary for money they lost as a result of a breach.
If the situation is more severe, a trustee or executor may also have to pay punitive damages on top of the compensatory damages. Moreover, if a trustee or executor perpetrates theft, fraud, or embezzlement, they could even be charged with a crime and go to jail.
In California, breaching this duty via theft or embezzlement is a misdemeanor crime when the value of stolen assets is $950 or less, and it is punishable by up to 6 months in county jail. If the value exceeds $950, this is a felony and can result in up to 3 years in jail.
Contact a Premier Trust Attorney if You Suspect a Breach of Fiduciary Duty
A trustee and executor have considerable influence over a trust and estate. When they neglect or breach their duties, this has severe consequences. Whether you are a trustee or executor accused of breaching your fiduciary duty or believe a trustee or executor has breached their obligations, consulting with an expert estate litigation attorney is essential to preserve the integrity of an estate or trust.
Fortunately, at Gokal Law Group, we have the experience and expertise to offer unparalleled representation for beneficiaries and trustees. Contact us for a consultation.
When someone appoints an executor or trustee, this signals tremendous confidence in their ability and integrity. However, sometimes an executor or trustee is not suitable for this position, or does not fully understand his/her/their responsibilities. When a person does not fulfill their obligations as a trustee or executor, this is considered a breach of fiduciary duty, and contacting a premier trust attorney is crucial to preserving the estate or trust. The most common penalty for a breach of fiduciary duty involves suspending or completely; however, there can be more extensive and severe consequences.
Here is what to know about the penalty for breaching this duty:
What is Fiduciary Duty?
A trustee or executor has significant responsibility when overseeing a trust and must maintain the highest standard of care when they have this position. This duty begins the moment someone accepts the responsibility of being a trustee or executor.
The trustee or executor must execute the wishes of the person who created the estate planning instrument per the document, whether it is a trust or will, and make decisions for the benefit of the trust. Essentially, you can define fiduciary duty as a legal obligation to:
- Administer the trust or estate per the estate planning instrument
- Prioritize beneficiary interests over their own
- Maintain reasonable control over and preserve a trust or estate’s property
- Always act in good faith and with integrity and loyalty to the trust
- Treat beneficiaries with impartiality and respect
- Maintain transparency about all relevant information
When a trustee or executor fails to abide by these responsibilities, it is considered a breach of fiduciary duty, and consulting an expert trust attorney is imperative to preserve the integrity of the trust or estate.
What Constitutes a Breach of Fiduciary Duty?
A trustee or executor breaches this duty when they knowingly breach their responsibilities, are unaware of their duties, or cannot perform them.
If a trustee or executor breaches their duties, there is a risk of criminal actions and/or significant financial liability. Working with a preeminent trust attorney is essential. Several situations constitute a breach of duty.
Some examples include:
- Uses the trust or estate’s property for their benefit or financial gain
- Requires beneficiaries to waive the fiduciary’s liability
- Operates with a conflict of interest
- Fails to fulfill their duties and obligations
- Does not administer the trust or estate per the instrument
- Engages in activities that endanger the trust or estate
- Fails to disclose pertinent information to beneficiaries
Still, there are innumerable situations that the courts consider a breach, and only an expert trust lawyer can help you determine how to prove a breach of duty and your legal recourse.
What are the Consequences of a Breach of Fiduciary Duty?
The most common penalty for a breach of fiduciary duty involves suspending or completely removing the trustee or executor, having them pay attorney fees and court costs, and having them return any stolen property.
However, there can be more extensive and severe consequences. Depending on the situation, a trustee or executor may be liable to pay compensatory damages, which means reimbursing the estate, trust, or beneficiary for money they lost as a result of a breach.
If the situation is more severe, a trustee or executor may also have to pay punitive damages on top of the compensatory damages. Moreover, if a trustee or executor perpetrates theft, fraud, or embezzlement, they could even be charged with a crime and go to jail.
In California, breaching this duty via theft or embezzlement is a misdemeanor crime when the value of stolen assets is $950 or less, and it is punishable by up to 6 months in county jail. If the value exceeds $950, this is a felony and can result in up to 3 years in jail.
Contact a Premier Trust Attorney if You Suspect a Breach of Fiduciary Duty
A trustee and executor have considerable influence over a trust and estate. When they neglect or breach their duties, this has severe consequences. Whether you are a trustee or executor accused of breaching your fiduciary duty or believe a trustee or executor has breached their obligations, consulting with an expert estate litigation attorney is essential to preserve the integrity of an estate or trust.
3 Responses
My matter involves Erie county Buffalo, New York, and executor. I believe, has breached the fiduciary duty under the law. By removing me as a trustee Ask constituted by the degree of my late katholos
My father passed away last year and my brother was the trustee, (by the way he has a contract that waives himself from being the trustee of this trust) , he has sold everything and has blocked me as a beneficiary and didnt give me anything, i had to come to my home country iran because he took everything and sold them. He abducted me in iran and im currently in an ongoing abduction case with him in iran but he ran away to US now. I would appreciate your help. He has drained my life after fathers death. thank you for your help.
I’m going to need the services of your firm. My Brother (Executor/Trustee)has willfully, from August 2022 through May 6,2025,refuses to Fulfill His Responsibility to Me (Sub-Trust/Beneficiary) and Diverted $22,800,in Funds, that I Strongly Objected to. He chose to write those checks and I was not Consulted, and when I Found Out, I immediately voiced my objections, and he consistently Ignored Me, since Day One, while Settling Our Mother’s Estate. Father passed 11 months previous, leaving My Brother to Settle the Affairs. My Mother Expressed to Me, her feelings of her hands”being tied behind her back”, and instructed me, that if my Brother didn’t Follow Their Strict Instructions regarding Me, and My Housing and Expenses, to take him to Court. My Father and Mother’s Instructions were not followed, and he hasn’t given me, not one penny, for my expenses and I have been struggling with living on My SSDI, and trying to keep up with my expenses, before going to collections, but I only receive $1,509,per month, and those funds are supposed to Supplement My Income until I can find and Receive suitable Housing that I can afford, for My Retirement, in 5 years I gave Up My Homecare Job and The House that I was Renting for the previous 4 years, before Moving into My Parents, in Order to Take care of them both, and Since then, once he settled the Entire Estate, at the Time of Dispersements, I was the Only One Person, that received NOTHING.
My Health was not good and I subsequently went to Live in Kentucky with My Son and his Family, which All 3 of us Agreed on $1,200.00 per month. That covered the House Payment of$1,000 per month, and $200 for Any Utilities that I may have Used . At a later date, My Son started receiving $800, more, for no other reason, than it was My Brother who Gave it to Him. I Objected to My Brother, Because Their Employment Checks, were Their Own. So, I want an immediate Refund From My Brother Executor/Trustee, because he ignored me and did it Anyway.
Since coming back to Michigan, I cannot get him to Disperse Any Funds to My Accounts that I Provided. To Him, to Meet My Expenses., and Housing. So I feel like My hands are tied, as well.
My Brother has NPD(Narcissistic Personality Disorder) and if it’s not His Way, it’s the Highway
I have ALWAYS made my own decisions and paid my own responsibilities. He doesn’t have P. O. A. Or Payee Representative status, for me. I manage my own affairs and will continue to do so.
His Controlling, and Manipulating Behavior, instructing where and how to live, are just more than I am willing to be Subjected to.
I need help with the Entire Situation, and Would like to hear, legally, what my options are.
Please let me know if you are available and interested in taking My Case. He refuses to put a Penny, into My hands and that’s not FAIR nor Just and I need him to be told what he is doing, is WRONG.
My Parents did not want him to torture me, with my inheritance and he’s Not Following My Father’s Strict Instructions.
I’m can’t associate with him, at all and over the last 45 years, maybe 20 words were spoken, and Me, and My Son’s would leave, Once a Year at Xmas Time.
I’m can’t Deal with the Emotional Abuse and I am not going to be treated as Less than. Anymore. I’m can’t discuss a thing with someone who lacks any Empathy or Remorse, for the Treatment and Manipulation of My Mother and Me.
My Mother couldn’t Believe that her Husband of all these years, put her in this position, either.
My Parents have Always let me make My Own Decisions, and I’m not going to let My Brother, change, that now.
Now My Brother didn’t Disclose that there’s a Will. My Parents didn’t have a Will, and without reading it, as he swore everyone else to keep it to themselves, I found out that he just filed it, April 2025,after Calling Macomb County Courthouse Myself and they said a Will was filed.
Had I known there was a Will, I could of Objected to it, (his reasoning for keeping me in the dark).
Now I have not received a Copy of the Will, but I Will Bet, that it Matches the Trust, Exactly, so that My Brother has gotten away with Getting the Entire Estate, except for the Sale of the Primary Residence of which gave the Grandchildren and Kelly, $8,000 each.
My Sister and I received the Household Bank Account for $168,000, split 50/50 equal to $86,000 each and a few w thousand dollars from the same Sale of the Primary Residence, to bring us to$93,000 or so.(He charged the figures 3x)
He had the Trust, in the end, of him Retaining the Remaining Cooper Property, and All of My Parents Estate, 4 or 5 Bank Accounts, Life insurance, Stocks, Entire Contents of the House and 45 years of Jewelry.
Nothing was Appraised, and his stating in HIS LEDGER’S that the Contents was$2,000, was what just My Parents Bedroom Set Costed.., Alone.
There was A Lot of Stuff.
I requested the 3 items that My Mother Already had given us to me, and he ignored that request as well.
So you see, what I am dealing with, and I am trying to keep My Emotions Intact.
This is My Financial Picture and I have a Say, with How My Funds are to be Used, Not his interests, Mine, Above His, Isn’t that the Law??