Helping You Avoid Breach Of Fiduciary Duty
Being named a fiduciary of a trust or estate is an enormous responsibility to overtake. It is important to know your fiduciary duties to avoid being sued. At Chayet & Danzo, LLC, we will inform you of your fiduciary duties so that you will not be in breach.
Know Your Fiduciary Duties
Under Colorado Revised Statute § 15-1-103, a fiduciary is defined as: (1) “a trustee under any trust, expressed, implied, resulting, or constructive; (2) an executor, administrator, personal representative, guardian, conservator, curator, or receiver or bankruptcy trustee; (3) a partner, agent, officer of a corporation, public or private, public officer; or (4) any other person acting in a fiduciary capacity for any person, trust, or estate.”
Fiduciaries are responsible for three main duties: the duty of loyalty, the duty of impartiality and the duty of care. If you fail to exercise any of these duties while you are acting under your fiduciary capacity, you will be found to be in breach of your fiduciary duties.
Fiduciary Breach Accusations
If you have breached the duty of loyalty, the duty of impartiality or the duty of care, you may be sued. A person may breach his or her fiduciary duties if he or she has committed specific acts such as:
- Commingling personal funds with trust funds
- Making risky investments that jeopardize the trust
- Favoring certain beneficiaries over others
There are many more actions that can result in breach, and our firm has the resources to investigate your situation. We handle numerous breach of fiduciary duties conflicts. We represent beneficiaries and heirs who wish to remove hostile or incompetent fiduciaries. We also provide representation to fiduciaries who have been accused of impropriety.
Important Fiduciary Responsibility Laws
It is important to keep yourself informed on the laws surrounding fiduciary responsibilities. There have been several laws that have been recently passed or modified:
- Colorado Cost Compensation Act: Colorado Revised Statutes, Title 15, Article 10, Part 6 is a recent addition to the Colorado Probate Code regarding compensation and cost recovery. It states that a fiduciary and his or her lawyer are entitled to reasonable compensation for the services provided on behalf of the estate. We can help you get compensated for your service as a fiduciary.
- Fiduciary Oversight Act: The Colorado Probate Code also provides for rules on fiduciary oversight (Colorado Revised Statutes, 15-10-501 et. seq.). Courts may direct the fiduciary to file with the court documents such as status reports, inventory of estate assets or a financial report. Our firm can assist you with such requests from the court.
- Power of Attorney Laws: A power of attorney designates authority to another person to make decisions for you. The power of attorney is governed by statute in Colorado (Colorado Revised Statutes, 15-14-601 et. seq.). Powers of attorneys are common in health care directives, which are written instructions on how you want to carry out your health care if you are no longer able to make the decision.
Contact Our Denver Lawyers To Discuss Your Fiduciary Breach
If you suspect a fiduciary is in breach of his or her duties or if you are a fiduciary who has been sued for breach, you can turn to the lawyers at Chayet & Danzo, LLC, for representation. Contact our firm at 303-872-5980 to talk to a Denver, Colorado, attorney who is knowledgeable about breach of fiduciary duties. We offer free initial consultations.