Fiduciary law is the practice of representing and consulting with trustees, executors, administrators, conservators, all of whom are considered fiduciaries in California and in Los Angeles. Fiduciary obligations are duties which are not to be taken lightly if you are appointed to one of the above offices. Get help about your fiduciary duties and stay protected from a claim for breach of fiduciary duty.
Why is Fiduciary Law Important?
Fiduciary law is important because the concepts of acting as a fiduciary are not normally known to the public and errors by fiduciaries can result in great damage to beneficiaries. The basic premise of fiduciary duties is that the fiduciary has the duty of loyalty, which in simple words, means that he or she must put the interests of his or her beneficiary ahead of his own interests.
What are some of the examples of things that can be expected of fiduciaries in California?
A fiduciary is expected to act as a neutral.
A fiduciary is expected not to engage in a fight with a beneficiary, subject to a change by a court order. If a beneficiary is acting to the detriment of the trust, the fiduciary or trustee may request court instructions as to how he should handle that beneficiary.
A fiduciary is expected to benefit the trust or estate.
When a person is both a fiduciary and a beneficiary of a trust or will in California, he must ensure that his own interests come second to that of other beneficiaries. For example, if a trustee wants to buy the property of the estate or trust, he or she must pay a better price than all other bidders of that property.
A fiduciary must be sure to carry insurance on the trust property to protect the estate.
As a beneficiary, you may request the trustee or fiduciary to provide information regarding insurance on the property and may converse with the trustee regarding the adequacy.
A fiduciary in California must act as a prudent investor to protect the assets of the estate or trust.
While the trust may except a trustee from staying within the prudent investor rules, and the court may modify the rule by instruction, the trustee must see to it that the portfolio is diverse and not subject to great investment risk.
Talk to Mina Sirkin, an expert in Fiduciary Law in Los Angeles California about your questions. Call 818.340.4479 or email.