Five Facts About Self-Dealing And Trustee Breach Of Fiduciary Duty In CA
During a trust administration in California, the trustee has many duties and obligations to the beneficiaries of the trust. One such duty is to avoid self-dealing. When a trustee engages in activities that benefit the trustee without regard for the beneficiaries, the trustee has committed a breach of fiduciary duty in California. Clearly, this type of behavior could harm the assets of the trust, ultimately impacting the inheritance that the beneficiaries receive. Taking action quickly following a breach is vital to minimizing the potential harm.
In order to reduce the likelihood of trust assets being reduced by self-dealing, it is important to first understand trustee breach of fiduciary duty in California. The following are key facts:
- A trustee of a trust acts as a fiduciary for the beneficiary.
- A trustee owes a duty to the beneficiaries to place their interest above his or her own.
- Beneficiaries may be entitled to damages if a trust litigation matter is brought against the trustee.
- Trustees who breach a fiduciary duty for engaging in self-dealing can be removed by the probate court following a petition brought by the beneficiaries.
- A trustee’s self-dealing may consist of stealing from the trust, modifying its terms, or wasting money for his or her own benefit.
At times, evidence of self-dealing may be found by looking at the trustee’s compensation for administering the trust. For more information about self-dealing and trustee compensation, view our article, “California Trustees: Be Sure That Your Compensation Is Reasonable.”
Trustee self-dealing is a dangerous activity that can ultimately harm the inheritance of the beneficiaries of the trust. To learn more about the fiduciary duties of trustees and how you can protect your rightful inheritance, contact an experienced San Diego probate litigation attorney today. Call The Grossman Law Firm at (888) 443-6590 for a consultation.
The Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307