Scott Grossman

Scott Grossman

Attorney

The Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307

Trustees who are in charge of administering trusts in California are bound by certain rules, duties, and obligations. Specifically, trustees owe a fiduciary duty to the beneficiaries of the trust. When they take actions that benefit themselves to the detriment of the beneficiaries, they may have engaged in trustee self-dealing in San Diego. Self-dealing is a clear breach of the fiduciary duty that is owed to the beneficiaries. Wondering what might constitute self-dealing during a trust administration? The following are four examples:

Examples of Self-Dealing During a Trust Administration:

  1. First of all, stealing. An example of trustee self-dealing is where the trustee steals assets from the trust for his or her own benefit. The asset could be cash, personal property, or any other item that is held within the trust. If the trustee takes the asset without permission or against the terms of the trust, he or she has engaged in self-dealing.
  2. Modifying the terms of the trust. If a trustee modifies the terms of the trust for his or her own benefit, that act constitutes trustee self-dealing in San Diego. An example would be if the trustee modifies the trust to incorporate a provision that increases the compensation the trustee receives. That may be a breach of the trustee’s fiduciary duty.
  3. Also, wasting the trust’s money. An example of a trustee wasting the trust’s money as an act of self-dealing is where the trustee spends money needlessly, such as using trust funds to pay for an unnecessary service that is provided by the trustee.
  4. Last but not least, generally acting inappropriately. A trustee can act inappropriately and engage in self-dealing in many possible ways. One example would be where a trustee sells a trust asset to himself or herself for less than fair market value.

Contact us Today for Your Complimentary Consultation:

In addition to self-dealing, there are several other potential issues that beneficiaries should be aware of as a trustee administers a trust. Our article, “Twelve Issues to Be Wary of During a California Trust Administration,” provides an overview of these potential problems. In conclusion, contact an experienced San Diego trust litigation lawyer today to learn more about the duties of a trustee. Call our toll-free number at (888) 443-6590 for a free consultation. It would be our pleasure to further assist you.

Pin It on Pinterest