Texas Fiduciary Litigation Attorneys
Guarding your estate against fiduciary misconduct
When you designate a trustee to manage your estate and look out for the best interests of your beneficiaries, you’re placing your trust in this person to carry out their responsibilities fully and in good faith.
But what happens if your trustee breaches their fiduciary responsibility?
At the law firm of Shann M. Chaudhry Esq., Attorney at Law PLLC, our proactive Texas fiduciary litigation attorneys provide extensive fiduciary litigation services, including actions against misconduct and pursuing the removal of an estate or trust representative.
You don’t have to resolve these problems on your own. At the law firm of Shann M. Chaudhry Esq., Attorney at Law PLLC, our proactive Texas fiduciary litigation attorneys provide extensive fiduciary litigation services, including actions against misconduct and pursuing the removal of an estate or trust representative. Contact us today to learn more about how we help our clients.
Our firm can move quickly and effectively to represent beneficiaries in cases involving estate disputes. Understanding your concerns is critical to helping you achieve a fair resolution, and we take pride in our responsive, client-centered communication.
What Is a Fiduciary?
Texas law expects all trustees, executors, and other fiduciaries to make decisions based on the best interests of those they represent. A personal benefit should never be the top priority in managing a trust or executing a will.
With the role of fiduciary comes significant responsibility, including:
- Treating beneficiaries with respect
- Being reasonable and fair in all actions
- Conducting duties as transparently as possible at all times
- Having the best interests of the beneficiaries at heart
- Carrying out the role in good faith
Acting in a self-serving manner, abusing authority, or not being upfront about conflicts of interest that may arise can lead to legal action against the fiduciary.
Fiduciary misconduct
Generally, state law takes the stance that any estate administration by a fiduciary conducted out of personal bias or in an unprofessional manner could constitute misconduct. This could occur in a variety of ways, such as:
- Refusing to communicate
- Failure to prudently invest trust assets
- Failure to properly oversee trust assets
- Self-dealing
- Not keeping accurate records
- Taking funds from the estate for personal reasons
- Failing to fulfill their contractual obligations to the estate and its beneficiaries
- Causing loss to the estate because of fraud, undue influence, or wrongful acts or omissions
Under Texas Probate Code § 149, there a several remedies for breach of fiduciary duty, including:
- Compelling an executor or trustee to provide an accounting of the state going back 15 months
- Requiring the estate assets be distributed
- Assigning a different executor
- Removing said representative of the estate
Fiduciary misconduct
Generally, state law takes the stance that any estate administration by a fiduciary conducted out of personal bias or in an unprofessional manner could constitute misconduct. This could occur in a variety of ways, such as:
- Refusing to communicate
- Failure to prudently invest trust assets
- Failure to properly oversee trust assets
- Self-dealing
- Not keeping accurate records
- Taking funds from the estate for personal reasons
- Failing to fulfill their contractual obligations to the estate and its beneficiaries
- Causing loss to the estate because of fraud, undue influence, or wrongful acts or omissions
Under Texas Probate Code § 149, there a several remedies for breach of fiduciary duty, including:
- Compelling an executor or trustee to provide an accounting of the state going back 15 months
- Requiring the estate assets be distributed
- Assigning a different executor
- Removing said representative of the estate
Fiduciary removal
Fiduciary misconduct has consequences and may even lead to the removal of the representative of the estate or trust. This isn’t necessarily an easy process, but some situations may support this type of action:
- Fraud
- Theft of funds/assets
- Poor management of the estate/trust
- Conflicts of interests
- Not looking out for the best interest of beneficiaries
- Undue influence in favor of one beneficiary over another
- Not keeping beneficiaries informed about decisions/actions being taken
- Taking advantage of a testator’s lack of capacity
- Commingling funds
Types of Fiduciary Relationships
Fiduciary relationships can take several forms in several different legal contexts. For estate law, the following fiduciary relationships are typical.
Trustee/beneficiary
This is the most common relationship found in estate law. An example would be a single mother creating a trust to manage the assets she leaves behind to her children should she pass on before they are adults. She would name an individual or organization to be the trustee of her estate.
This creates a fiduciary relationship between the designated representative and her children.
Trustee/beneficiary
This is the most common relationship found in estate law. An example would be a single mother creating a trust to manage the assets she leaves behind to her children should she pass on before they are adults. She would name an individual or organization to be the trustee of her estate.
This creates a fiduciary relationship between the designated representative and her children.
Attorney/client
A lawyer may be designated as the trustee of a client’s estate, trust, or will in estate planning. This means they must represent the beneficiaries without bias and put their interests first in every decision and action.
Power of attorney
When you create a power of attorney, this creates a fiduciary relationship between the grantor (the creator of the power of attorney, also referred to as the “principal”) and the agent (the person receiving the power of attorney, also referred to as a “proxy” or “attorney in fact.”
Power of attorney
When you create a power of attorney, this creates a fiduciary relationship between the grantor (the creator of the power of attorney, also referred to as the “principal”) and the agent (the person receiving the power of attorney, also referred to as a “proxy” or “attorney in fact.”
Executors
The relationship between the executor, the estate of the decedent, and the beneficiaries of the estate is also a fiduciary relationship. Executors can be sued for failing to properly carry out their responsibilities concerning administering the estate.
The Fiduciary Litigation Process
A breach of duty must have occurred to successfully litigate a fiduciary litigation case in Texas. This requires your attorney to gather the necessary evidence to prove your claim and file a motion with the court governing your case.
There are three elements your Texas fiduciary litigation attorney must demonstrate to do so successfully:
- There is/was a fiduciary relationship
- The fiduciary breached their duties
- The plaintiff suffered damages from that breach
How a Fiduciary Litigation Attorney Can Help
If you’re unsure what steps you should take next regarding a problem with handling your or your loved one’s assets, an experienced litigation attorney is your best resource.
Not only can an attorney assess your estate matter, but they can also support your legal case in many other ways, including:
- Challenging or defending trusts and estates
- Representing beneficiaries who are challenging fiduciary actions
- Challenging or defending fiduciary actions taken under a power of attorney designation
- Appealing previous estate litigation rulings
- Undertaking fiduciary litigation in cases of misconduct and breach of duty, including removal actions
- Establishing or challenging guardianship of an individual or estate/trust through litigation
Speak With an Experienced Fiduciary Litigation Attorney
The attorneys at the law firm of Shann M. Chaudhry Esq., Attorney at Law PLLC, represent parties involved in fiduciary conflicts to resolve these matters with the best interests of our clients in mind.
Our firm understands you don’t want to be in a dispute and will work hard to make this a straightforward process and help you find a legal solution. Our fiduciary litigation attorneys provide thoughtful and compassionate representation and aim to maximize your benefit from our services.
To discuss your matter further and learn more about how we can help, schedule a consultation at one of our locations in Austin or San Antonio, TX, today.
Fiduciary Litigation FAQs
What's the difference between a fiduciary and an executor?
The primary difference is that an executor carries out the instructions included in a will. In contrast, a fiduciary is tasked with holding onto and managing assets on behalf of a beneficiary.
What constitutes a breach of fiduciary duty in Texas?
Under Texas law, all of the following three elements must be present to constitute a breach of fiduciary duty:
- There is/was a fiduciary relationship
- The fiduciary breached their duties
- The plaintiff suffered damages from that breach
Who can sue for breach of fiduciary duty?
If you have or have had a fiduciary relationship with the person or entity managing an estate or trust, you can sue for breach if:
- A fiduciary duty was owed to you
- This duty was breached
- You suffered financial harm, or the fiduciary gained personal benefit from that breach
If a person or entity had a fiduciary duty or obligation to you, such as a person or entity managing an estate or trust, and they breached their duty, you can sue for breach. Remedies may include actual damages, disgorgement, constructive trusts, fee forfeiture, exemplary damages, attorneys fees and costs, and more.