What Is a Breach of Trust?
Breach of trust refers to a situation where a trustee or executor fails to uphold their fiduciary duties, either intentionally or negligently, resulting in harm to the beneficiaries or the estate. Trustees and executors are legally obligated to act in the best interests of the beneficiaries, manage assets responsibly, and adhere to the terms of the trust or will.
Examples of breach of trust include misusing estate funds, failing to distribute assets according to the trust or will, or making decisions that conflict with the beneficiaries' interests.
Common Types of Breach of Trust
Breach of trust can take various forms, including:
Misappropriation of Funds - Using trust or estate funds for personal benefit or unauthorized purposes.
Conflict of Interest - Acting in a way that prioritizes the trustee's personal interests over those of the beneficiaries.
Negligent Management - Failing to properly invest, safeguard, or manage trust or estate assets.
Failure to Distribute Assets - Withholding or delaying the distribution of assets without valid reasons.
Non-Adherence to Trust Terms - Ignoring or violating the specific instructions outlined in the trust or will.
Legal Consequences of Breach of Trust
Trustees or executors found to have breached their duties may face significant legal repercussions, including:
Personal Liability - Trustees may be held personally liable for losses caused by their actions or omissions.
Removal from Role - Courts can remove trustees or executors who are found to have breached their fiduciary duties.
Compensation Orders - Trustees may be required to compensate the beneficiaries or estate for financial losses.
Reversal of Transactions - Courts may invalidate unauthorized transactions and order the return of misappropriated funds or assets.
How We Can Help
At ME Law, we provide expert legal guidance to address breaches of trust. Our services include:
Case Evaluation - We assess the circumstances to determine whether a breach of trust has occurred and outline the available legal remedies.
Legal Representation - Our team represents beneficiaries or other affected parties in court or alternative dispute resolution proceedings.
Trust Audits - We conduct comprehensive reviews of trust administration to identify and address potential breaches.
Remedial Actions - We pursue compensation, asset recovery, or other legal remedies to rectify the harm caused by a breach of trust.
Preventative Advice - We advise trustees and executors on fulfilling their fiduciary responsibilities and avoiding breaches of trust.
Take the Next Step
Breach of trust can have serious consequences for all parties involved. At ME Law, we are dedicated to protecting your rights and resolving disputes effectively. Contact us today to discuss your case and secure expert legal support in addressing breaches of trust.
Let's talk about your case
- (416) 923-0003
- +1 (800) 891-2897
- intake@melaw.ca
- referral@melaw.ca