People create trusts to carry out their final wishes and secure beneficiaries’ futures. But when a trustee avoids their duties, this can be a devastating blow. The good news is that you have options, and you don’t have to let this failure to act affect or override the operation of the trust. We have clients ask us all the time, How is a trustee held accountable? We are here to explain the different legal tools in place to hold a trustee accountable and how you can use them.
At Gokal Law Group, we have helped countless beneficiaries receive favorable outcomes in court, leveraging a range of legal strategies and resources to hold trustees accountable, reverse the damage they have done, and recover losses. We have successfully recovered millions in settlements and trial verdicts for clients. Here’s how you can hold a trustee accountable.
How is a Trustee Held Accountable?
Trustees have a legal obligation to adhere to the terms of the trust and be accountable to its beneficiaries for their actions. This obligation, also called their fiduciary duty, is one of the most important legal tools at your disposal to hold them responsible.
Trustees can be made to face personal liability in litigation, which can result in their replacement, civil damages, fines, and more. A trustee can face personal liability when they breach their fiduciary duties, act negligently, or engage in self-dealing by using trust assets for their own personal benefit.
A Trustee’s fiduciary duties go into effect the moment they become a Trustee. A Trustee’s fiduciary duties encompass a number of obligations that ensure they always act in the best interests of the beneficiaries and the trust. These obligations include:
- Duty of loyalty
- Duty to avoid conflicts of interests
- Duty of prudence
- Duty of impartiality
- Duty of confidentiality
- Duty to inform and account
- Duty of care
- Duty of good faith
Ultimately, this is just a glimpse of what responsibilities these obligations encompass, and a breach of these duties can take countless forms. Whenever you think a trustee has breached these duties, contacting a trust litigation lawyer ASAP is paramount.
Related Article: California Trust Law: Can a Trustee Be Held Personally Liable?
How Can Beneficiaries Hold a Trustee Accountable?
Now, let’s get into how you can hold a trustee accountable. The first step is demanding an accounting, a detailed summary of all transactions about a trust’s finances.
In the previous section, we mentioned that trustees have a duty to inform and account. As a beneficiary, you have the right to see financial statements and an accounting. This accounting is invaluable because it is where you and your attorney can first identify signs of misconduct or mismanagement.
Usually, it is difficult for the average person to interpret these financial documents and the laws that govern trusts. At this point, it is essential to bring a lawyer into the situation to help. They will have the expertise and experience you need to decipher the accounting and complex trust laws.
If they discover evidence that the trustee has breached their duty, two scenarios could play out. First, if the offense is not particularly severe, your attorney may remind the trustee of their duties to ensure they stay on top of them. If the trustee is amenable, this could be the solution.
However, trust litigation will likely follow if the situation is more dire or the trustee refuses to correct their behavior. In either case, professional counsel is invaluable.
Whether the trustee is failing to uphold these duties out of ignorance of their responsibilities or outright misconduct, an attorney can help you compile the evidence you need to prove that they are not succeeding in their role and, ultimately, hold them accountable.
“When holding a trustee accountable, the best option is to work with an attorney. Only a seasoned trust litigation lawyer will know the laws governing trusts and trustees, have experience in court, and be able to interpret the trust document. Without this expertise, it’s nearly impossible to determine what your legal options are. For example, some trust documents can influence how the trustee is held accountable, which could influence the course of litigation.”
– Andrew Micaraset, Associate, Gokal Law Group
Related Article: When Do You Need a Trust Litigation Attorney in Orange County?
Need to Hold a Trustee Accountable? We Can Protect Your Inheritance.
So, now you’ve answered the question, How is a trustee held accountable? You do not have to let the legacy of this transgression spoil the legacy your loved one wanted to leave behind. When you work with an experienced firm focused on Trust and Estate litigation like Gokal Law Group, you can rest assured that we can help you hold irresponsible trustees accountable to safeguard what is rightfully yours. Visit our Contact Page to schedule a consultation to hold your trustee accountable and defend your inheritance.
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