I represent my minor son as one of two beneficiaries in a family trust that was left by their father. The now former Trustee and Executor was removed from his duties because of conflict of interest due to the discovery that he became business partners with his other nephew and having loaned the same business more than $200,000 from the Estate
and Trust within two years after my husbands death.
The former trustee and Executor was granted Trusteeship upon the death of my late husband according to terms of the trust. The court appointed Executor during probate
did not know that my brother in law had already loaned $117,000 to a business he formed with my step-son months after my husbands death. I would personally never have agreed to any settlement if I had known this nor would my attorney or the Probate judge involved.
My former brother in law purports himself to be a financial executive that provides company audits and accounting for an global investment firm. In other words, he is a professional and knows what he is doing.
He did not let anyone know that he was in business with the other beneficiary of the Trust and Estate he was charged with handling prior to his being granted Executor and Trustee. Had I known that he was involved in business with the other beneficiary, I would not have consented to a settlement that allowed him to become in charge of these funds which by the way,contradict the manner in which funds where to be released to the beneficiaries through the trust terms.
My question, is did my former Brother In Law have a duty to inform of this conflict of interest? Is there a law that supports that? He claims not to have been aware of any conflict. It seems to me that he had a duty to inform all involved.
I am in Alabama. While he is not a CPA, he does have an accounting degree from university and having worked in the financial investment realm as well as being responsible for regularly performing audits on investments companies, it seems to me he is qualified to be knowledgeable of the task he was undertaking and of the obvious conflict of interest that existed.
Any advice is appreciated