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Fiduciary Duty Law

Individuals that are faced with situations involving fiduciary duties can have questions in how this duty is being performed or not performed. Uncertainties of what a fiduciary duty is or how to release someone who is in breach of fiduciary duty often leads to questions like the ones answered below.

What is fiduciary duty?

Fiduciary duty is a standard of care in the highest form at the level of equity or law. It is a legal or ethical relationship of trust between parties. A fiduciary, the person performing the duty, is expected to be loyal to the person whom the duty is owed to (Principal). The fiduciary should not put personal interests before the duty and is not to gain anything form the fiduciary position, unless the principal has given his consent.

Can a client sue a lawyer for breach of fiduciary duty in a malpractice suit?

A breach of fiduciary duty and legal malpractice are different and therefore can be seen as different suits. The difference between legal malpractice and breach of fiduciary duty can be found in the kind of duty that has been breached. A fiduciary duty occurs when there is a special relationship that is more than just attorney client relationship like in malpractice. A fiduciary duty is much more than an ordinary duty and is to be done in the highest standard of care.

What are fiduciary powers?

Fiduciary powers can be conferred on someone by the legislature as a statutory power. A trustee of a trust is a fiduciary and is given certain powers by statute. Normally the use of fiduciary powers is via common law and is referred to as a fiduciary duty. In this fiduciary duty there is an obligation to act in the highest level for the best interest of another person. This obligation comes to reality when one person gives special trust and confidence in another person.

Can someone have an individual fired as a trustee for not doing their fiduciary duties?

There is a fiduciary duty required of the trustee to the beneficiaries. These duties include the supplying of K-1 statements. Beneficiaries have the right to request statements and an accounting of Trust activities. If the trust is being improperly managed then there may be a case of breach of fiduciary duty. Fiduciaries can be removed if they are in breach of the fiduciary duty.

I am a beneficiary of a trust, in Indiana. When my parent died I asked the trustee for an accounting and disbursement. I received excuses and threats and their refusal to pay the inheritance. What can I do?

A trustee has a fiduciary duty to give an accounting of how the trust is being managed. Refusal to give an accounting is a breach of fiduciary duty. Trustees are not allowed to threaten to not release the funds. Beneficiaries should receive full accounting by the trustee because the trustee is legally obligate to provide accounting of everything going in and out of the trust. The trustee must also distribute funds according to the provisions of the trust. Beneficiaries can file a petition requesting the removal of the trustee based on breach of fiduciary duty. In some case you can even file for damages for the actions of the trustee.

Knowing the right kind of information about fiduciary duty laws can help when you are dealing with circumstances involving fiduciary duties. Experts can help answer what a fiduciary duty is or what a breach of fiduciary duty is. Get the answers fast and affordably by asking an Expert.
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