Trustee Trouble and What to Do Next

Managing assets for the benefit of named beneficiaries, trustees are given significant authority. This authority comes with a strict legal obligation, known as a fiduciary duty, to act in the best interests of the beneficiaries.

Unfortunately, trustees do not always live up to these responsibilities. When mismanagement, neglect, or outright misconduct occurs, beneficiaries may need to take legal action. Talk to a Pompano Beach estate litigation lawyer if you suspect a trustee is failing to act appropriately.

Understanding a Trustee’s Fiduciary Duty

Under Florida law, a trustee must act with honesty, loyalty, and care. This means:

• Managing trust assets prudently
• Keeping clear and accurate records
• Distributing assets in accordance with the trust’s terms
• Avoiding self-dealing or conflicts of interest
• Communicating with beneficiaries and providing requested information

When a trustee violates these duties, whether through inaction, poor decision-making, or intentional misconduct, it is called a breach of fiduciary duty.

Beneficiaries should be on the lookout for warning signs that a trustee is failing to uphold their role. Failure to communicate, such as ignoring requests for information or refusing to share trust documents, is a major indicator of mismanagement. Additionally, making reckless investments, allowing property to deteriorate, or failing to collect funds needs to be documented.

Using trust assets for personal benefit, such as transferring funds to themselves or family members are examples of self-dealing, too. If you notice any of these red flags, it’s time to speak with an estate attorney.

Beneficiaries have legal options when a trustee fails to act responsibly. Requiring the trustee to provide detailed records of how the trust is being managed is typically a first step. Then, if a serious breach comes to light, a court can remove the trustee and appoint a replacement. Florida law gives beneficiaries strong protections, but swift action is essential since deadlines for legal remedies can be strict.

A Florida Case Example and Protecting Your Interests

One notable Florida case that highlights trustee misconduct is Brigham v. Brigham (2004). In that case, family members accused a trustee of mismanaging trust property, failing to act in the beneficiaries’ best interests, and engaging in self-dealing. The dispute escalated into litigation, and the court ultimately emphasized the trustee’s fiduciary obligations and the beneficiaries’ right to hold them accountable.

This case demonstrates that when trustees fail to fulfill their duties, beneficiaries have legal recourse to protect the trust and their inheritance.

Trustee disputes are not only financially damaging but can also strain family relationships. If you believe a trustee is failing to act (or worse, abusing their authority) seeking experienced legal guidance is a way to pave a path forward.

A Pompano Beach estate litigation lawyer can review the trust documents, investigate the trustee’s actions, and help you pursue the appropriate remedy. Compelling transparency, seeking removal, and recovering losses can all be explored.

Did you notice a trustee behavior that has you worried? Legal professionals can address your concerns. Connect with the attorneys at Mark R. Manceri, P.A. to learn more. For experienced legal guidance, schedule a confidential consultation today.