A fiduciary in California has a legal obligation to act in the best interests of the estate, trust, or beneficiaries they represent, with specific duties that vary based on their role as executor, trustee, or other fiduciary position.
Understanding Fiduciary Duty
Each fiduciary has what's called a fiduciary duty: a legal obligation to represent the estate's best interests above their own. Fiduciaries may have different responsibilities depending on their role and relationship to the estate and its administration.
Estate Executor Duties
An estate executor must administer the estate's assets in accordance with California state rules and regulations. Estate executors are required to:
- Initiate probate proceedings when required
- Notify potential heirs and creditors of the estate's impending settlement
- Create a comprehensive inventory of the deceased person's holdings
- Resolve any outstanding debts and obligations
- Distribute inheritances according to the will or trust
Executors are bound by their fiduciary duty to responsibly manage the estate and safeguard its assets throughout the administration process.
Trustee Responsibilities
Similarly, a trustee has a fiduciary duty to administer a trust in accordance with its specific conditions and terms. Trustees cannot use trust assets to enrich themselves or withhold funds that the trust mandates must be disbursed to beneficiaries.
Whether managing a living trust, funeral trust, or other trust arrangements, trustees must maintain detailed records and act with complete transparency.
Consequences of Breach of Fiduciary Duty
Fiduciaries who breach their fiduciary duties can be challenged or sued in court. This may result in personal liability for losses, removal from their position, and potential criminal charges in cases of fraud or embezzlement.
If you need guidance on trust administration or have concerns about a fiduciary's actions, contact our experienced California estate planning attorneys for professional assistance.
