Might A Fiduciary Incur Liabilities For Mismanagement?
Your fiduciaries must be loyal to the beneficiaries of your estate or trust. They must place the beneficiaries’ interests above their own. Your fiduciaries are answerable to the beneficiaries for any harm to them resulting from a breach of their fiduciary responsibility, including neglecting the administration of the estate or trust. The fiduciary must scrupulously avoid a conflict between his duty as fiduciary and his personal interests. A fiduciary may not commingle trust funds with his own funds. Nor may a fiduciary engage in self-dealing, that is, use the trust to further his personal interests, such as using trust funds to make an investment in a business he controls for his own profit. A court could order the fiduciary to pay any self-dealing profits to the beneficiaries.
