Breach of Fiduciary Duties Related to Trust Administration

Fiduciary duties are a complicated legal principle, imposing what is considered to be the highest duty of care in the legal system. This duty of care applies to trust administrators, who are entrusted with managing and safeguarding assets on behalf of beneficiaries and must act in their best interests at all times.

If you believe a trust administrator has violated their fiduciary duty, or you are facing accusations of breaching this duty as an administrator, immediately seek guidance from experienced legal professionals. Contact Culin, Sharp, Autry & Day P.L.C. to ensure the proper handling of your trust administration challenges.

Understanding Fiduciary Duties

Trust administrators, also known as trustees, have a legal obligation to act in the best interests of the trust’s beneficiaries. There are three key fiduciary duties that are generally applicable to trust administration:

Duty of Loyalty

The duty of loyalty requires the trustee to act in the best interests of the beneficiaries and to avoid conflicts of interest. Trustees must make decisions that prioritize the beneficiaries’ needs and welfare, rather than their own personal interests. This duty prohibits trustees from engaging in self-dealing, where they benefit personally from the trust’s assets, and from using the trust’s assets for purposes unrelated to the beneficiaries’ benefit.

Duty of Care

The duty of care requires trustees to exercise reasonable care, skill, and diligence in managing the trust’s assets. Trustees must prudently invest and manage the trust’s assets, considering factors such as risk tolerance, market conditions, and the beneficiaries’ best interests. Trustees must also keep accurate records, provide regular accountings to beneficiaries, and ensure proper administration of the trust in accordance with the trust’s terms and applicable laws.

Duty of Impartiality

The duty of impartiality requires the trustee to treat all beneficiaries fairly and without favoritism. Trustees must act in a manner that avoids favoring one beneficiary over another, unless the trust explicitly allows for differential treatment. This duty ensures that trustees distribute trust assets in accordance with the trust’s terms and the beneficiaries’ respective interests.

Benefits of Hiring an Estate Litigation Attorney

Retaining an experienced attorney when you have been adversely impacted by a trust or estate administrator who breaches their fiduciary obligations can provide several significant benefits. First, an attorney can evaluate whether they have fulfilled their fiduciary duties in accordance with applicable laws and ethical standards. They can help you determine the nature and scope of damages you may have suffered as a result of any breach of fiduciary duties by an administrator.

Contact a Virginia Trust Administration Attorney

If you suffered any damages related to the breach of fiduciary duties or trust administration in Virginia, contact Culin, Sharp, Autry & Day P.L.C. Our attorneys are committed to providing personalized and comprehensive legal advice in contested estate matters. Don’t face these complex legal matters alone—contact our trusted attorneys at Culin, Sharp, Autry & Day for guidance.