Breach of Fiduciary Duty Lawyers in Colorado
A fiduciary is responsible for managing the assets for the benefit of another. A trustee, personal representative, executor, power of attorney, guardian, and conservator are all fiduciaries and can be held responsible for improper actions.
In order to protect the interests of the beneficiaries, the fiduciary must comply with certain duties including:
- Duty of loyalty to not seek any advantage from a beneficiary
- Duty to avoid conflicts of interests
- Duty of impartiality
- Duty of disclosure
- Duty to keep trust property separate from own property
- Duty to inform and account to beneficiaries
- Duty of prudence and care
Need to Demand a Financial Accounting?
A beneficiary may request financial information concerning their assets which are being managed by a fiduciary, including an account of the assets. A fiduciary may include a power of attorney, trustee, executor, personal representative, guardian, conservator or anyone who is handling the finances of another.
An accounting must contain:
- A statement of assets and liabilities
- A statement of receipts and disbursement of principal and income
- Information concerning the compensation of the fiduciary, it agents
- Other pertinent financial information regarding the assets
The beneficiary has the right to file a petition with the court to compel an accounting if the fiduciary failed to submit an account after a written request or no account has been made within six (6) months preceding the written request. Our attorneys can assist you in requesting an accounting or compelling a fiduciary to report an accounting.
When Breach of Fiduciary Occurs
If a fiduciary has breached one of these duties, there are several avenues of a relief a beneficiary can choose from. The beneficiary may compel the fiduciary to compensate for the breach; appoint a temporary fiduciary; remove the fiduciary; set aside acts of the fiduciary; account of profits; reduce/deny compensation of the fiduciary; or impose a constructive trust on the property.
If the fiduciary's breach causes a loss, the beneficiary may seek compensatory damages against the fiduciary. Under Colorado Revised Statute § 15-10-501, the courts have substantial power in supervising and ensuring that the fiduciary is properly managing the beneficiary's assets. For example, the courts can request a review of the fiduciary's activities if the court is notified that the fiduciary may be acting against the interests of the beneficiaries. Our Colorado probate attorneys can assist you in determining whether a fiduciary has breached their duty and advise you of the relief you deserve.
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