Are you currently serving as a trustee in West Palm Beach? Did you know that you might be personally liable for breaches of trust? Check out these four ways to avoid breach of fiduciary dutylawsuits in West Palm Beach. If you are unsure about whether or not certain actions are permitted by a trust document speak to an experienced probate lawyer today.
Breach of Trust
- A trust creates a special relationship between a trustee who manages the property and holds legal title and the beneficiary.
- A West Palm Beach beneficiary is entitled to the benefits of the trust property such as interest and appreciation in value.
- A trustee acts as a fiduciary for the beneficiary which means the trustee owes afiduciary duty.
- When a trustee acts selfishly this may be a breach of that duty.
- So what exactly are the “fiduciary duties” you should worry about?
#1 Duty to Act Prudently
- Trusts almost always involve some form of investment property.
- As a trustee you are charged with a duty to act as a prudent investor.
- This includes a duty to diversify that investment property.
- Trustees in West Palm Beach may rely on advice from investment experts in making these investments.
#2 Duty to Earmark and Administer
- One of the most common breaches of trust is something known as “co-mingling.”
- Do you know what that means?
- Trustees in West Palm Beach have a duty to earmark trust property as separate from their own.
- If a trustee co-mingles funds he may be liable to the beneficiaries for damages.
#3 Duty to Avoid Self Dealing
- Another common breach of trust occurs when a trustee self deals.
- Do you know what that means?
- A trustee cannot benefit from trust transactions even if it is good for the beneficiary as well.
- For example if a trustee is holding a home in trust and buys it from the trust, even at a higher than market rate, the trustee is in breach.
- Also a trustee can never accept a loan from trust funds regardless of interest rates, odds of repayment etc.
Getting Help
- If you are serving as a trustee in West Palm Beach you are not alone.
- You have a right to seek expert advice on issues and to rely on that advice reasonably.
- What does that mean?
- If you are concerned about certain actions of a co-trustee or want to make sure your own work is up to par you can rely on experienced trust attorneys and their advice in making your decisions.