What is a breach of fiduciary duty in probate?

Probate Fiduciary Duty

A breach of fiduciary duty in probate occurs when an executor (or trustee) fails to act in the best interests of the beneficiaries or the estate, violating their fiduciary duty. This can include mismanaging assets, self-dealing, failing to account for estate funds, or neglecting their responsibilities. 

Elaboration:
  • Fiduciary Duty:

    In probate, the executor or trustee has a legal and ethical obligation (a fiduciary duty) to act solely in the best interests of the beneficiaries and the estate. This means prioritizing the estate’s needs and the beneficiaries’ interests above their own. 

  • Breach:

    A breach occurs when the fiduciary violates this duty, either intentionally or unintentionally. This can include: 

    • Mismanagement of Assets: Failing to prudently invest estate funds, neglecting to maintain property, or causing the estate to lose value due to negligence. 
    • Self-Dealing: Putting the fiduciary’s personal interests ahead of the beneficiaries’, such as selling assets to themselves at unfavorable prices or paying excessive fees. 
    • Failure to Account: Failing to provide accurate and timely accounting reports to beneficiaries and the court, or withholding information about the estate’s financial status. 
    • Neglecting Responsibilities: Failing to file necessary paperwork, pay debts and taxes, or distribute assets in a timely manner. 
  • Consequences:

    If a breach is proven, the probate court may take action, including:

    • Removing the fiduciary from their position. 
    • Ordering the fiduciary to compensate the estate or beneficiaries for any losses caused by the breach. 
    • Levying fines or penalties.