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.
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 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 trustees 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.
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