Breach of Fiduciary Duty in Coral Gables Probate

A fiduciary is someone that handles assets on behalf of others – such as beneficiaries – of an estate. In probate, a personal representative or executor is also a fiduciary. When a personal representative is appointed to manage an estate, they have a legal obligation to act in the best interests of the beneficiaries. However, breaches of fiduciary duty can occur, leading to financial loss and other complications. At Veliz & Associates, P.A., we are dedicated to protecting beneficiaries’ rights and preventing breach of fiduciary duty in Coral Gables probate cases – as well as trusts. A trustworthy probate attorney takes care to see that estates are administered properly through proactive counsel.

What Is Fiduciary Duty in Probate?

A fiduciary duty is a legal responsibility requiring a personal representative to manage an estate with honesty, care, and loyalty. Florida law states that a personal representative is held to the same fiduciary standards of care as a trustee. The law imposes strict standards on fiduciaries to ensure they uphold the best interests of beneficiaries while complying with all legal requirements. Key fiduciary duties include:

• Duty of Loyalty: When it comes to the duty of loyalty, it simply means that the fiduciary has a duty to do what is in the beneficiaries’ best interest, rather than their own. For example, let’s say the personal representative is a real estate agent and the estate has several properties for sale. The real estate agent may see an opportunity to purchase a property at a discounted rate, however, that would not be in the best interest of the remaining beneficiaries.
• Duty of Reasonable Care: Fiduciaries must manage the estate’s assets prudently. They must act as quickly and efficiently as possible in the best interest of the estate.
• Duty of Obedience: If the deceased had a last will & testament, the fiduciary is under an obligation to distribute the assets according to the will.

What Constitutes a Breach of Fiduciary Duty?

If you are currently involved in a Coral Gables probate case, you should be aware that a breach of fiduciary duty occurs when the personal representative or trustee exercises their powers improperly or acts against the best interest of the estate or beneficiaries. Some examples of a possible breach include:

• Mismanagement of Assets: Risky investments with estate assets or misusing estate funds.
• Self-Dealing: Using estate assets for the fiduciary’s personal gain or making unauthorized distributions from estate assets
• Ignoring Legal Obligations: Missing deadlines, failing to pay debts, or disregarding court orders.

Even well-meaning fiduciaries can breach their duties due to inexperience or lack of legal knowledge; and this is why it is important to have an attorney overseeing the process. Moreover, under Florida law, except in limited circumstances, personal representatives and trustee are required to have an attorney while fulfilling their duties.

Legal Consequences of a Breach of Fiduciary Duty

Probate law imposes significant penalties when a breach of fiduciary duty is proven in Coral Gables and elsewhere, including:

• Fiduciary Removal: The court can remove the personal representative or trustee and appoint a new one.
• Personal Liability: If the estate suffers damage or loss due to the personal representative’s breach of fiduciary duty, the personal representative can be held liable to interested parties.

Understanding and preventing a breach of fiduciary duty  requires strong legal acumen. Our experienced estate planning team will take all necessary measures to prevent a breach of duty so that the probate phase can be completed without issue.

Call a Coral Gables Attorney Before Probate to Discuss the Breach of Fiduciary Duty

At Veliz & Associates, P.A., we provide comprehensive estate planning services and can offer counsel on how to prevent the breach of fiduciary duty in Coral Gables probate. It is important that all parties understand the role and what should be avoided when managing assets for a deceased person. Please contact us to set up a consultation regarding probate or executors.