Fiduciary Breach of Duty Claims Against Trustees
Question: How can the actions, or inactions, of a Trust’s trustee be challenged by the Trust’s beneficiaries?
Answer: These beneficiaries can file a lawsuit or “petition” against the Trustee for failing to act in accordance with the Florida Trust Code.
Some of the requirements imposed by the Florida Trust Code include:
Administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this code. Fla. Stat. §736.0801.
Duty of loyalty (i.e. administer the trust solely in the interests of the beneficiaries) §736.0802.
Duty of Impartiality. If a trust has two or more beneficiaries, the trustee shall act impartially in administering the trust property, giving due regard to the beneficiaries’ respective interests. §736.0803.
Duty of Prudent administration. A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. §736.0804.
Attorney Seigel has litigated numerous cases involving claims against trustees, including:
Successfully represented trust beneficiary in litigation relating to trustee’s alleged failure to distribute trust funds and provide accountings.
Represented trustee in defending claims of breach of fiduciary duty and failure to account for assets, resulting in favorable settlement for trustee.