Understanding Breach Of Fiduciary Duty

A fiduciary duty is the highest standard of care a person can take on for another party. People with fiduciary duty (fiduciaries) must act in the best interests of their clients, even at their own expense. If a fiduciary fails at this duty, they can be held personally liable for any loss. The executor of a will and a trustee for a trust are fiduciaries, and beneficiaries may hold the executor or trustee accountable if they see evidence of a breach of duty.

At Kuiper Kraemer PC, we are breach-of-duty litigators who have provided comprehensive representation to people on both sides of fiduciary litigation. We are results-oriented attorneys dedicated to offering high-quality and effective service under high-stakes issues to people across Michigan.

Examples Of Fiduciary Duty

Allegations of fiduciary duty are extremely serious, but whether a case is actionable or not relies on a perception. You need to recognize the shape of a fiduciary duty breach if you are a fiduciary or if you are a beneficiary of an estate or trust. Generally, breaches include:

• Conflicts of interest: Any action a fiduciary takes must avoid benefiting the fiduciary directly. So, even if an investment makes sense for the estate, if the fiduciary would profit from it, it may be best to avoid it.
• Misappropriation of funds: Executors and trustees are allowed to take payment for the services rendered from the estate. But it is regulated and not carte blanche to spend on themselves.
• Failure to disclose information: Fiduciaries must carefully account for all their actions on behalf of the estate. Failure or misleading disclosures can and do make a serious case for a total breach.
• Negligence: Acting in the best interests of the estate or the trust is about taking appropriate and timely action. If the executor or trustee or administrator does not act at all and does not perform the basics of their duties, they are in breach.

Any perception that a fiduciary is self-dealing or otherwise breaking their faith with the estate in their care must be met with considerable scrutiny.

Holding Breached Fiduciaries Accountable

When a fiduciary does not uphold their duty, people and estates are at risk. From fraud to embezzlement to incompetence, beneficiaries have every right to question the actions of those holding the reins of the estate or trusts.

We meet with you to discuss your concerns about the handling of your interests. In that conversation, you can lay out exactly what worries you and what you’d like to understand. We will then act on what you’ve told us, examining the facts and pursuing legal action.

Our goal is to hold negligent fiduciaries accountable for their missteps and mistakes. We pursue this course strategically, thinking only of the way to make the estate or trust more secure for you.

Defending Claims Of A Breach Of Fiduciary Duty

Our experience in pursuing breach of fiduciary duty claims is only one arm of our practice. We also use our insight built on that work to defend executors and trustees facing allegations of breaching their duty.

We have experience defending fiduciaries from such claims, often in cases involving abusive or specious claims. Our investigation into the allegations against clients is thorough in the extreme, often uncovering important facts.

We know that when you face any breach of duty claim as a fiduciary, it is highly stressful. Your personal wealth and assets are at risk, but you do not have to accept that your case is over. We know how to build a defense against these allegations under Michigan law.

Perceptions Matter, But Not As Much As Strong Representation

Every claim in every type of litigation stems from someone’s idea of how things should go. It could be the executor, trustee or beneficiary. However, when an idea or a perception of estate mismanagement exists, there is only one outcome: litigation.

Pursuing or defending possible fiduciary breaches is a highly complicated area of the law. The evidence and arguments must be extremely compelling. Your perception of what has happened is not enough. Not without our help.

We can support your claims or defend you against claims by utilizing our considerable experience and understanding of the legal systems in Michigan. We are ready to go to work for you. Call us at Kuiper Kraemer PC or send an email using this online form.