Breach of Fiduciary Duty in New York

A fiduciary is a person or corporation who is legally obligated to behave in the best interests of his or her client. In the event of an estate, a fiduciary would be the executor or administrator. The beneficiaries of a decedent's will have a fiduciary relationship with the executor. It’s the responsibility of the executor to handle the decedent's estate through probate in the best interests of the beneficiaries & regardless of her/his own interests. Fiduciaries also include trustees, attorneys, guardians, and agents. If a fiduciary breaks his or her obligation, substantial legal consequences may result. If you are involved in a matter involving a breach of fiduciary duty by an executor, administrator, or other fiduciary, contact the Law Offices of David S. Rich, LLC to discuss your case.

Relationships of Fiduciary Trust

Fiduciary ties can arise in a variety of scenarios, including:

• Executor and beneficiary. The beneficiaries of a will have a fiduciary relationship with the executor. An executor must administer the estate in the best interests of the beneficiaries.

• Agents and principals. When you make a power of attorney, you, as the principal, enter into a fiduciary relationship with the person you appoint as your agent. The agent is legally required to operate on your behalf, in your best interests, and without bias.

• Lawyers and their clients. An attorney and his or her client also have a fiduciary relationship. An attorney and a client must have the highest level of trust.

• Trustees as well as beneficiaries. A trustee is someone designated by the trust's creator to manage the trust in accordance with the conditions of the trust agreement for the benefit of the named beneficiaries.

• Wards and guardians. If a guardianship is created, the guardian is the fiduciary who is responsible for ensuring that the minor child or adult is properly cared for. Depending on the rules of the guardianship and whether the guardianship is over a minor child or an adult, this may encompass a wide range of activities.

A violation of fiduciary duty occurs when a fiduciary, such as an executor, acts in a way that prioritizes the fiduciary's or another person's interests over the client's. For example, if an executor is required to sell estate assets, the executor must ensure that the property is sold at a reasonable price. If the executor sells the property to a friend for less than fair market value or less than what someone else would have paid, the beneficiaries may have a claim for breach of fiduciary duty. Similarly, if there are anomalies in the estate's bookkeeping, there may be grounds for a breach of fiduciary duty claim. The ramifications of a breach of fiduciary obligation can occur.

Because, only a breach of fiduciary obligation lawyer will explain that if a breach of fiduciary responsibility is discovered, there are a number of potential ramifications. For instance, if the breach involved an illegal transaction, the court may order that it can be revoked or reversed. Alternatively, the court may require the fiduciary to repay the beneficiaries, estate, trust, or client. It is also possible that the fiduciary will be asked to resign from his or her job.

Contact the Law Offices of David S. Rich, LLC

If you want to pursue action for breach of fiduciary duty, or if you have been accused of breach of fiduciary duty, it is critical that you are represented by an experienced Breach of Fiduciary Duty Attorney in Manhattan, New York who has the skill, knowledge, and resources to protect your legal rights. Our attorneys have years of expertise representing clients in fiduciary matters. Call us to set up a free, no-obligation consultation about your situation. 

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