Breach of Fiduciary Duty Lawyers in Colorado
A fiduciary is responsible for managing the assets for the benefit of another. A trustee, personal representative, executor, power of attorney, guardian, and conservator are all fiduciaries and can be held responsible for improper actions.
In order to protect the interests of the beneficiaries, the fiduciary must comply with certain duties including:
- Duty of loyalty to not seek any advantage from a beneficiary
- Duty to avoid conflicts of interests
- Duty of impartiality
- Duty of disclosure
- Duty to keep trust property separate from own property
- Duty to inform and account to beneficiaries
- Duty of prudence and care
Need to Demand a Financial Accounting?
A beneficiary may request financial information concerning their assets which are being managed by a fiduciary, including an account of the assets. A fiduciary may include a power of attorney, trustee, executor, personal representative, guardian, conservator or anyone who is handling the finances of another.
An accounting must contain:
- A statement of assets and liabilities
- A statement of receipts and disbursement of principal and income
- Information concerning the compensation of the fiduciary, it agents
- Other pertinent financial information regarding the assets
The beneficiary has the right to file a petition with the court to compel an accounting if the fiduciary failed to submit an account after a written request or no account has been made within six (6) months preceding the written request. Our attorneys can assist you in requesting an accounting or compelling a fiduciary to report an accounting.
Our Process: How We Address Fiduciary Duty Breaches
When fiduciaries violate their duty, we often utilize the following strategies to advocate on your behalf:
- Demand compensation for the breach: In cases where the estate or beneficiaries have experienced loss, we will compel the fiduciary to account for and repay these losses.
- Seek the appointment of a temporary fiduciary: When circumstances require immediate action, we may petition for the current fiduciary's removal and fight for the appointment of a replacement fiduciary.
- Petition to nullify actions: If the fiduciary fails to fulfill their duties, we will take legal measures to void those actions, ensuring they do not harm the estate or beneficiaries.
- Fight to deny compensation: When fiduciaries breach duties, we often challenge their right to compensation for services.
- Impose a constructive trust: When fiduciaries mismanage assets, we petition the courts to impose a constructive trust, placing disputed assets under the court’s supervision.
Our Approach: What You Can Expect From Us
Choosing the right team for your case means partnering with attorneys who offer the perfect balance of knowledge, expertise, and compassion. That’s what Jorgensen, Brownell & Pepin, P.C. provides.
- 40+ Years of Combined Experience: We’ve built a reputation on competence and compassion. Our track record speaks for itself and we encourage you to see what our satisfied clients say about us.
- Custom Legal Solutions: While we believe in upholding Colorado law, we don’t believe in one-size-fits-all solutions. You are as unique as your case. We will work with you to find a custom solution tailored to your needs and goals.
- A Comprehensive Approach: We understand the nuances of estate management and fiduciary duty. Let us help you navigate the process and ensure you fulfill your duties with confidence and peace of mind.
- Compassionate Guidance: We believe in efficiency, but not at the expense of kindness and compassion. Our team is dedicated to helping clients overcome common probate obstacles with care.
Frequently Asked Questions
What are the duties of a personal representative?
The court always appoints a personal representative, even if the deceased left a will. Once appointed, the personal representative has several duties. One of the most important is putting the estate's interests in front of the personal representative's, which is called fulfilling a fiduciary duty.
The personal representative may not favor one heir or beneficiary over another and must:
- Collect and inventory the assets of the estate
- Manage the assets during the probate process
- Pay the final bills of the deceased
- Make distributions to the heirs or beneficiaries
What constitutes a breach of fiduciary duty?
Breaches in fiduciary duty occur when a trustee, personal representative, executor, custodian under a UTMA account, guardian, conservator, financial and medical power of attorney fails to act in the best interest of the beneficiaries by:
- Mismanaging assets
- Failing to distribute assets according to the will or trust
- Acting with a conflict of interest.
Our team can help by evaluating the actions of the fiduciary against Colorado probate laws and standards of conduct to determine if a breach has occurred.
How do I prove a breach of fiduciary duty in court?
Proving misconduct requires showing that the fiduciary had a duty to the beneficiaries, that duty was breached through their actions or inactions, and the breach resulted in harm or loss to the estate or beneficiaries.
What can I do to address a breach of duty?
Remedies may include removal of the fiduciary, restitution, or compensation for losses incurred due to the breach, and sometimes punitive damages if the breach involved fraud or malice. Legal guidance is crucial to navigate the complexities of such cases and achieve a fair outcome.
Can a fiduciary be held personally liable for losses to the estate?
Yes, if it is proven that the fiduciary's breach of duty led to financial losses for the estate. Our team can help by accurately assessing the financial impact of the breach and pursuing appropriate legal action to recover damages.
Looking For Compassionate Guidance? Contact Jorgensen, Brownell & Pepin, P.C.
Whether you are handling disagreements among beneficiaries, have experienced a breach of fiduciary duty, or simply wish to have a seamless experience as a personal representative, we can help. We’ve guided countless personal representatives through the process and look forward to offering you the same level of excellence and support. Contact us today!
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