Trust is the foundation of any fiduciary relationship, especially between appointors and trustees. Unfortunately, some trustees fail to perform their duties, which can seriously affect beneficiaries.
Understanding the elements of a fiduciary duty breach claim against a trustee is crucial if you are considering legal action. This knowledge may empower you to protect your rights and loved ones’ assets.
What are the elements of a fiduciary duty breach claim?
You can report a trustee and file a claim if you suspect misconduct. While jurisdictions differ, there are generally four crucial components of a breach of fiduciary duty.
First, you have to prove the existence of a legal fiduciary relationship. The trust the principal prepared can be proof of the trustee’s duties and responsibilities.
As the plaintiff, you also shoulder the responsibility to prove that there has been a breach of duty. You must present proof if the trustee failed to perform their duties as specified in the trust or committed other violations.
For you to have a valid claim, the breach of trust must also cause actual damage. Remember that without this element, and if there has been no damage, your claim may not stand in court.
Moreover, the damage you incurred should be directly linked to the trustee’s actions taken in breach of duty. For example, you wanted to sue a trustee for selling a property for a lower price than you originally agreed on. A judge may question the validity of your claim if the trustee argues that no other buyer was interested, so they lowered the price, claiming that the action was in your best interest.
The importance of trustee integrity
In the complex world of trust administration, trustees bear a weighty responsibility to act in the best interests of the principal and their beneficiaries. By staying informed about fiduciary obligations and the consequences of breaches, you can more effectively advocate for your rights.