When it comes to fiduciary duties, it can be hard to get all of the facts straight. What are you responsible for? What doesn’t count as a fiduciary duty? Without experienced legal counsel, it’s natural to feel a little overwhelmed. That’s where Gaslowitz Frankel comes in.
By helping you understand the intricacies of fiduciary responsibilities, we hope to arm you with the knowledge you need to confidently protect the best interests of you and your loved ones.
Continue reading to learn more:
What Is a Fiduciary Duty?
A fiduciary duty is the obligation that a party has to act in another party’s best interest. It is used to provide a legal framework for relationships such as those between an attorney and a client, or a guardian and a ward. Fiduciary duties have far-reaching implications in a variety of legal situations.
“Gaslowitz Frankel gave me legal counsel at a time when I was very vulnerable. They always had my best interests in mind, and fought on my behalf to make sure I received the inheritance that was given to me.”
– Janet T., Atlanta, GA.
Related Article: What is the Fiduciary Duty of Loyalty?
6 Types of Fiduciary Duties
Fiduciary duties generally fall under one of six categories. A seasoned trust litigation attorney, like those here at Gaslowitz Frankel, can help you understand the ins and outs of each one. If you are looking for a high-level overview to gauge whether or not someone breached their fiduciary duty to you or a loved one, you’ve come to the right place.
Here’s your crash course on fiduciary duties:
1) Duty of Care
The duty of care is the fiduciary duty to exercise sound judgment to protect another person’s interests. A person in a fiduciary position is expected to act with the same amount of care one would use in protecting their own interests.
2) Duty of Loyalty
The fiduciary duty of loyalty is about putting the well-being of the party under your care above even your own interest, and steppingaside if you are unable to be loyal to that person. A fiduciary who may be tempted to favor the interests of another person over those of the person they are responsible to should resign to avoid liability for breaching their duty of loyalty.,as a fiduciary.
3) Duty of Good Faith
To act in good faith means avoiding taking advantage of s technicalities that may benefit the always adhere to the law, and not pursue activities outside of its boundaries. For example, it would not be in good faith to perform an illegal activity on behalf of a beneficiary. Fiduciaries must work within the law at all times, so as not to expose their beneficiaries to unnecessary risk.
4) Duty of Confidentiality
Fiduciaries are also required to maintain confidentiality with their beneficiaries. That means keeping private information, such as bank and health records, private and not using confidential information for personal gain.
5) Duty of Prudence
Fiduciaries have to make decisions on behalf of others regularly. The fiduciary duty of prudence demands that they exercise caution and reasonable levels of common sense when making those decisions. That means understanding the needs of the person in your care and avoiding risky investments that may harm them.
Last on our list is the duty of disclosure. Fiduciaries must always disclose all relevant information to those they serve. For example, trustees must disclose the performance of the investments they make for their beneficiaries and the basis for their decisions regarding trust distributions.
Related Article: What Happens When Fiduciary Duties Are Breached In A Trust?
What Is a Breach of Fiduciary Duty?
In order for there to be a breach of fiduciary duty, one must first meet the following requirements:
1. There was a special relationship of trust between you and the other party, such as a trustee and trust beneficiary or an executor and the creditors and beneficiaries of the estate.
2. A person taking part in that relationship has failed to fulfill their legal obligation of acting in the best interest of the other party.
3. An harmed party must have experienced measurable damages as a direct result of the defendant’s breach.
4. The defendant’s breach of fiduciary duty must have directly caused the damages suffered by the plaintiff.
Need Help With a Breach of Fiduciary Duty?
If you feel that your fiduciary is not completing their duties in your best interest Gaslowitz Frankel LLC is here to help. When you contact our law office at 404.892.9797, you’ll be in touch with the premier fiduciary litigators for the state of Georgia.
Fill out our contact form for a free consultation.
Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes with over 30 years of experience representing individuals, executors, trustees, and more in complex fiduciary disputes involving wills, estates, and trusts.
