TRUST BENEFICIARIES SUE #TRUSTEE FOR # BREACH OF FIDUCIARY DUTY— FOR SOMETHING THAT HAPPENED 32 YEARS AGO !
#Income beneficiaries of a trust created in 1969 sued their #trustees claiming that the #trustees #breached their fiduciary duties — AS FAR BACK AS 32 YEARS AGO— remember, these are just allegations:
- SELF DEALING? #trustees sold the primary asset of the trust to one of the #co-trustees and her husband — this is sometimes referred to as a prohibited #trustee act of self-dealing, or #trustee conflict of interest, which may be set aside or declared void
- SWEETHEART DEAL? the #trust asset was sold too cheap — for inadequate consideration
- WAS THE DECK STACKED? Trust asset sold in an alleged straw man transaction
- One trustee mis-distributed income
- HIDING THE BALL? No accounting.
WAS THERE AN ASSET CONCENTRATION IN THE TRUST? #Prudent investor rule?
Evidently, the primary asset of the trust was a very valuable piece of #trust real estate containing approximately 88 acres, which was subject to a 90 year ground lease — with an office development. You never know all the facts of the #trust trial in these appeals court opinions, but I’m guessing that the ground lease was very valuable and produced a lot of income. Which makes me wonder: was this #trust asset, an improper trust asset concentration in violation of the #prudent investor law? Or, did the #trustees receive permission from a #trust court, or the #trust beneficiaries, to retain, and not sell, this #trust real estate?
#APPEALS COURT ISSUE: DID #TRUSTEE CONCEAL #BREACH OF FIDUCIARY DUTY ? – and did the statute of limitations toll or was it suspended?
The appeals court for this #trust litigation sent the case back down to the trial court. The appellate court wants the #trust trial court to determine, probably by a #jury trial, whether the #trustee hid its bad acts – – – #concealed its #breach of fiduciary duty. This is a major victory for #trust beneficiaries, and the issue of #beneficiary rights. These alleged wrongs took place years and years ago. If a #trustee hides bad acts, generally, the law will permit you, a #trust beneficiary, to #sue the trustee within the proper statute of limitations – – – which begins when you know or should know of, or when you discover, the #trustees’ wrongs.
NO #TRUSTEE STATUTE OF LIMITATIONS FOR #FRAUD OR CONCEALING #TRUSTEE’S BREACH OF DUTY
Here’s some general #trust trial guidelines and guidelines for a #trust beneficiary who is considering bringing a #trust inheritance lawsuit. Generally,
- a #trust beneficiary must sue its #trustee within the proper #trust statute of limitations.
- If a #trust beneficiary does not begin a #trust lawsuit within the #trust statute of limitations, the #trustee may dismiss the #trust lawsuit or use this as a #trust defense
- the statute of limitations for a #trust lawsuit depends on the jurisdiction, the #trust law and any number of facts, but it may be anywhere from six months to 3 to 5 years
- if a #trustee commits a #continuing breach, #fraud, or #conceals a #breach of fiduciary duty, the #trust statute of limitations may not begin to run yet, or it may be suspended or tolled
FOR REFERRAL SOURCES, LAWYERS AND LITIGATORS
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We have been involved in high profile, nine figure, multi-million-dollar #Florida estates, including Madoff matters, old # Palm Beach money and complex trusts and multi-party #Florida probates. We also handle “small” or “simple” matters. All we do is litigate and help you with #Florida estate and trust administration. #Tortious interference with an inheritance and allegations of #undue influence, and #will challenges and trust challenges are a unique subspecialty of the law. Does your client know which ones to file, when to do that, and why? Do you know the different ways to prove each case? How about quantifying or assessing damages? It would be our pleasure to work with you and to serve your clients. For a complete copy of this very recent legal opinion please email michelle@pankauskilawfirm.com.
John Pankauski, www.johnpankauski.com, is the author of The Trustee’s Book – An Individual’s Guide To Money, Misfits, Marriages, and Mismanagement, and the upcoming The $41 Trillion Inheritance War. He is an estate and trust litigator in West Palm Beach, Florida. www.pankauskilawfirm.com and has been featured on the CBS Evening News, The Wall Street Journal, MarketWatch, NBC, ABC and Fox.