So a trustee has a fiduciary duty to the estate - A fiduciary duty means that the person in the fiduciary capacity owes a duty to the other person- and that the fiduciary must act in good faith, with the best intentions, to preserve any property that is at issue. Failure to act in this manner (essentially, a trust/guardian) is considered a "breach" and can result in:
1. removal of the fiduciary
2. sanctions (ie fines, award of attorney fees, etc)
3. damages (economic liability for the damages suffered by the party to whom the duty was owed)
If the fiduciary fails to act according to the terms of the trust or the pour over will, or otherwise unduly benefits from their position as trustee, that exposes that individual to liability. Basically the court will want to see the money distributed according to the terms of the trust.
The statute of limitations for this breach is 2 years (from the date the breach was or should have been discovered) - this is pursuant to statute Section 12-542.
The fiduciary also has a duty to provide an accounting to the beneficiaries (usually annually) and to keep the beneficiaries reasonably informed regarding the trust.
Given the ongoing issue one has experienced and the inconsistencies one has encountered, an attorney should review the transactions to determine the existence of the breach, and to file the necessary breach of fiduciary duty papers with the probate court before the statute expires.
Further questions? Please post here to continue the chat.
Satisfied? Kindly rate positively so I receive credit for assisting you.
(no additional charges are incurred).
Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.