Understanding Florida Breach of Fiduciary Duties: Protecting Beneficiaries’ Rights

When it comes to estate management, trust administration, and guardianships, fiduciaries are legally obligated to act in the best interests of the beneficiaries. In Florida, a breach of fiduciary duty can have serious legal and financial consequences, particularly when heirs or beneficiaries believe their rights have been violated. Before diving into how a breach occurs, it’s important to first understand what a fiduciary is and their responsibilities.

What is a Fiduciary? 

In estate law, fiduciaries include trustees, guardians, and personal representatives who are responsible for managing the affairs of another individual—whether they are alive or deceased. Fiduciaries must adhere to strict ethical and legal standards, ensuring that they always prioritize the interests of the estate or the individual they represent. Often, these roles are filled by trusted relatives, close friends, or even hired professionals, such as attorneys.

Given the significant responsibility that fiduciaries hold, breaches can occur when they fail to fulfill their duties properly.

What Constitutes a Breach of Fiduciary Duty? 

A breach of fiduciary duty occurs when a fiduciary fails to meet their obligations. Common examples of breaches include:

• Self-Dealing: Acting in their own interest, such as selling estate property to themselves or their relative at  below fair-market price.
• Excessive Compensation: Although fiduciaries are entitled to compensation, it must be reasonable. Overpayment is considered a breach.
• Improper Investments: Fiduciaries must make prudent financial decisions. Reckless investments can lead to significant losses and breach of duty.
• Theft or Misappropriation: Using estate or trust assets for personal use is a clear violation of fiduciary duty.

Defending Against Breach Claims 

Fiduciaries accused of breaching their duties can defend themselves by proving that they acted in compliance with the law or the estate’s foundational documents. Common defenses include:

• Equitable Defense of Laches: When the plaintiff waited too long to bring the claim.
• Statute of Limitations: If the time allowed to file a claim has expired.
• Exculpatory Clauses: Trusts often include provisions that protect trustees from liability for honest mistakes, as long as they did not act with intent to cause harm.

Why You Need an Attorney 

Whether you’re a fiduciary looking to understand your rights or a beneficiary concerned about a potential breach, working with an experienced attorney is critical. A knowledgeable estate planning attorney can clarify your responsibilities and ensure any breaches are identified and addressed swiftly.

If you suspect a breach of fiduciary duty or need guidance as a fiduciary, contact the Law Offices of Mark F. Moss at (904) 329-7242 to schedule a complimentary consultation.