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By: Scott Grossman on October 13th, 2016

No Fees for You: Trustees Who Engage in Wrongdoing Can Be Subject to Denial of Fees

Deciding to pursue a trust litigation matter is a big step. You may be concerned as to what your potential remedies may be. Especially when the issue at hand is a trustee who has breached his or her duty. Fortunately, an experienced San Diego trust litigation attorney can help you to evaluate your options.

One remedy available is “denial of fees.” Consequently, this forces the trustee to forfeit fees normally paid to them in exchange for duties related to administering the trust.

Highlights of Denial of Fees

  • A denial of fees may result in the trustee having to pay his or her own attorney’s fees to defend against the breach of trust action.
  • The typical trustee and trustee’s attorney fees can’t be paid from the trust assets. Due to this, someone may not get paid for their services.
  • The trustee remains liable to their attorney’s fees.
  • If the trustee paid themselves a fee from the trust assets improperly, they may have to return the amount collected.
  • In addition, a trustee cannot resist the beneficiaries request to terminate the trust just because the trustee wants to continue to collect a trustee fee. If the trustee chooses to do so, it can result in a denial of fees.

A denial of fees is just one remedy that is available following a breach of fiduciary duty in California. If you would like to learn more about issues surrounding trustee compensation, click here. Contact an experienced probate attorney in San Diego today for more information. Call our office at (888) 443-6590 for a free consultation.