The court may find that the agent breached their fiduciary duty and can be found liable for the financial transactions with no history. In this example, the agent may have acted in the principal’s best interest but has no records to attest to. If there are no financial records kept explaining where funds have gone, this can be used against them in a civil case. Another child alleges that the sibling is spending their parent’s savings on their personal debts or in a manner that doesn’t benefit the parent. Here is one example: a sibling is chosen as a power of attorney to watch over an incapacitated parent’s financial matters. These records include receipts, copies of checks, tax forms, and all other documents that can be considered evidence of a transaction made under power of attorney. To ensure there is no question of whether a duty was fulfilled, the agent should keep accurate records of all financial transactions done under the power of attorney. This can happen in the case of a power of attorney when it is determined that the agent’s actions were not within the principal’s best interest. When a party does not fulfill their required obligations, it is a breach of fiduciary duty and can result in a civil lawsuit. What is Considered Breach of Fiduciary Duty? Whoever owes the fiduciary duty must use their knowledge or expertise to benefit the other party’s interest. The highest standard of care can exist in many different scenarios and contexts, but the general definition is a significant trust or confidence placed in one party by another. If you need to know what can cause a breach in duty or what the fiduciary duty’s responsibilities are, read on. As a result, it is essential to contact Heban, Murphree, and Lewandowski for legal assistance when a fiduciary duty breach may have occurred. The position of trust a relationship with fiduciary duty requires must be upheld, and any failure to fulfill your obligation can have severe consequences. There are many fiduciary duty examples, including a lawyer and client, a trustee and a beneficiary, a corporate board member and a shareholder, or an elderly or incapacitated parent and a child (known as a principal and an agent).Ī fiduciary duty is a duty of the highest order for one entity to another. They are trusted with the oversight of property or funds. Fiduciary duty is the legal term for when one party must act on behalf of another.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |