In Massachusetts, individuals and families often entrust their financial and personal affairs to such fiduciaries as executors, trustees, and guardians.
When these individuals fail to meet their obligations, the consequences can include financial losses, emotional strain, and fractured relationships, and can be devastating.
With years of experience handling Massachusetts estate law, CASEY LUNDREGAN BURNS, P.C. understands the legal nuances involved in proving a fiduciary breach and we are committed to protecting your interests.
What is Fiduciary Duty in Massachusetts?
A fiduciary relationship in Massachusetts is built on trust and confidence. A fiduciary is legally bound to act solely in the best interest of the person they serve, called the beneficiary.
Examples of fiduciary relationships in estate matters include:
- Executor of a Will
- Trustee of a Trust
- Guardian for a Minor or Incapacitated Person
- Conservator of an Estate
- Power of Attorney
Key Duties of a Fiduciary:
Fiduciaries in Massachusetts must adhere to these fundamental principles:
- Loyalty: Always prioritize the beneficiary’s best interests, avoiding conflicts of interest.
- Care: Manage assets prudently, using reasonable skill and diligence.
- Impartiality: Treat all beneficiaries fairly, especially in cases involving multiple parties.
- Good Faith: Act honestly and transparently, providing full disclosure.
- Obey Instructions: Follow the legal directives outlined in wills, trusts, or other documents.
Common Types of Breaches of Fiduciary Duty
Fiduciaries may fail to fulfill their obligations in several ways:
- Self-Dealing: Taking advantage of trust assets for personal benefit or engaging in transactions that unfairly profit themselves.
- Mismanagement: Making poor investment choices, neglecting to diversify holdings, or conducting unauthorized transactions that lead to financial losses.
- Conflicts of Interest: Acting in ways that serve their own interests or those of others instead of prioritizing the beneficiary’s needs.
- Breach of Confidentiality: Sharing or exposing sensitive information about the beneficiary or the estate without proper authorization.
- Improper Distributions: Distributing funds or assets in ways that do not align with the instructions in the will, trust, or other governing documents.
- Lack of Transparency: Failing to provide clear, accurate, and timely updates or accounting to beneficiaries about how the estate or trust is being managed.
How to Prove a Breach of Fiduciary Duty in Massachusetts
Proving a breach of fiduciary duty involves presenting clear evidence that the fiduciary failed in their responsibilities and that their actions caused harm. This process requires meeting specific legal standards.
Elements to Establish A Breach of Duty
To prove a breach of fiduciary duty in Massachusetts, certain key elements must be demonstrated:
- Existence of a Fiduciary Relationship: It must be shown that a legally recognized fiduciary relationship existed between you and the individual in question.
- Breach of Duty: Evidence must demonstrate that the fiduciary failed to uphold one or more of their essential duties, such as loyalty, care, or impartiality.
- Damages: You must prove that the breach caused harm, such as financial losses, missed opportunities, emotional distress, or a reduced estate value.
- Causation: A direct connection between the fiduciary’s actions and the harm suffered must be established—the damages must be a foreseeable result of the fiduciary’s breach.
How to Gather Evidence
Building a strong case requires collecting relevant and compelling evidence:
- Financial Records: Bank statements, investment reports, tax returns, and other financial documents can identify irregularities or losses.
- Communication Records: Emails, letters, meeting minutes, and text messages can reveal intent, actions, or lack of transparency by the fiduciary.
- Testimony from Witnesses: Statements from beneficiaries, third parties, or others involved can support your claim.
- Professionals’ Testimony: Professionals such as accountants or financial advisors can provide insights into how the fiduciary’s actions caused harm.
- Governing Documents: Wills, trust agreements, or power of attorney documents serve as a baseline for assessing whether the fiduciary acted in accordance with their obligations.
By assembling thorough evidence and presenting a clear connection between the breach and the resulting harm, you strengthen your claim and increase the likelihood of achieving a favorable outcome.
Legal Consequences of a Breach of Fiduciary Duty in Massachusetts
Monetary Damages
Victims can recover compensatory damages to cover financial losses, including lost profits, diminished asset value, or increased taxes.
Legal Fees
In some cases, courts may order the breaching fiduciary to pay the plaintiff’s legal fees.
Property Transfer
If a fiduciary wrongfully obtained property, the court may require its return to the rightful beneficiary.
Injunctive Relief
The court can issue an injunction requiring the fiduciary to stop certain actions, like self-dealing, or to return misappropriated funds.
Constructive Trust
This legal tool requires the fiduciary to hold improperly obtained assets for the benefit of the plaintiff.
Removal from Position
Fiduciaries found guilty of breaches may be removed from their roles, such as trustee or executor.
Professional Consequences
For fiduciaries with professional licenses, such as financial advisors or attorneys, a breach can result in disciplinary action or reputational harm.
Casey Lundregan Burns, P.C.: Your Partner for Fiduciary Breach Cases in Massachusetts
If you suspect a breach of fiduciary duty or have concerns about an estate’s management, Casey Lundregan Burns, P.C. is here to help. Our firm is dedicated to protecting your rights and ensuring your interests are safeguarded. Contact us for a consultation at 978-878-3519.
Disclaimer: The information in this post is not intended as legal advice or as a substitute for the particularized advice of counsel. For more information, please consult an attorney.