Breach of Fiduciary Duty Attorney in Cleveland
A fiduciary is a person or organization with an obligation to act in the best interest of another party or parties, without regard to their own best interest, in a way that preserves good faith and trust. Examples of a fiduciary in the context of estate settlement include an executor or administrator (charged with settling an estate), and a trustee (charged with administering a trust). The general duties of a fiduciary as part of the estate-settlement process are:
- Collection of assets
- Payment of debts
- Proper distribution of assets to heirs
Fiduciaries can be held liable for mishandling an estate. If an executor or administrator neglects to sell personal property that is required to be sold, and instead retains, consumes, or disposes of it for his or her own benefit, he or she Will be charged with the personal property at double the appraised value. Ohio Rev. Code Ann. ยง 2113.34. Fiduciaries must be bonded and insured in most cases, which means they must have a solid credit rating. With some exceptions, he or she must also be an Ohio resident who is at least 18 years of age. For this reason, it is common for someone placed in a fiduciary role to seek out the advice and guidance of an experienced Cleveland probate attorney.
Breach of Fiduciary Duty Claim
There are a number of common scenarios in which fiduciary actions or inactions can harm heirs, including:
- Failure to timely file an inventory of assets.
- Failure to properly notice surviving spouse, creditors and other entitled parties.
- Failure to properly settle debts
- Improper debt settlement
- Not settling debts in the proper order as outlined by Ohio law.
- Improper liquidation of real estate and other assets.
- Self-dealing
- Fraud
- Failure to act in best interest of the estate
- Failure to distribute assets to designated heirs
- Failure to resolve conflicts in estate documents or beneficiary accounts before distribution.
Fiduciary relationships may also exist outside of the probate process, particularly as it relates to trustees of certain trust accounts. Assets that are not distributed through probate include assets held in some trusts, some real estate held jointly, and assets that are Transferable on Death or Payable on Death. Fiduciary responsibilities involving such assets are best discussed with an experienced probate lawyer in Cleveland. The Law Offices of Daniel McGowan, LLC is a full-service law practice, with extensive experience in the areas of litigation and trial practice, elder law, and probate law and trust law. Daniel McGowan is well known for his experience with the probate process and Florida, Pennsylvania and Ohio and probate courts. He has a reputation for being accessible and for his thoughtful and innovative manner he solves probate problems and other civil disputes. Daniel McGowan represents clients in probate and estate matters throughout the Cleveland area, including Lakewood, Rocky River, Fairview Park, Shaker Heights, Cleveland Heights, South Euclid, East Cleveland, Linndale, Brooklyn, Parma, Brook Park. Newburgh Heights, Cuyahoga Heights, Brooklyn Heights, Warrensville Heights, Maple Heights, Garfield Heights, Bratenahl and Euclid.
Call (216) 616-7592 today for a confidential consultation.
Our FAQ
Have questions? We are here to help. Still have questions or can't find the answer you need? Give us a call at 216-616-7592 today!
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What should I do if I suspect a breach of fiduciary duty?If you suspect a breach of fiduciary duty, it's crucial to act promptly. Gather any evidence and seek legal advice from a breach of fiduciary duty lawyer in Cleveland. They can help you evaluate the situation and determine the best course of action. For more information, contact us.
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How long do beneficiaries have to bring a claim for breach of fiduciary duty?Ohio law sets deadlines for filing claims, known as statutes of limitation, which vary depending on the circumstances. Generally, beneficiaries must act within a set number of years after discovering—or reasonably being able to discover—the breach. If they wait too long, courts may bar their claims even if misconduct occurred. Because fiduciary breaches are sometimes concealed, courts also consider when evidence first became available. Acting quickly preserves legal options and strengthens a case. Consulting an attorney early helps ensure claims are filed on time.
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Can a fiduciary be held responsible for poor investment decisions?Yes—fiduciaries must follow the prudent investor rule, which requires them to act carefully, diversify investments, and avoid unnecessary risks. If they make reckless or uninformed decisions that lead to losses, beneficiaries can hold them accountable. Courts distinguish between normal market fluctuations and genuine mismanagement. Fiduciaries who fail to seek expert advice or disregard investment guidelines are more likely to be found liable. Legal counsel can help analyze investment activity and determine if the duty was breached. This protects beneficiaries from irresponsible asset management.
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What types of damages can be recovered in a breach of fiduciary duty case?Damages may include repayment of misused funds, reimbursement for losses caused by negligence, and sometimes punitive damages if the misconduct was intentional. Courts can also order the fiduciary to forfeit any compensation earned while breaching their duties. Beneficiaries may recover both financial losses and equitable relief such as removal of the fiduciary. In serious cases, courts may freeze accounts or require restitution from personal assets. The exact remedy depends on the severity of the breach and the harm caused. Legal guidance ensures damages claims are properly calculated and enforced.
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Who can be held liable for a breach of fiduciary duty in Ohio?In Ohio, fiduciaries such as executors, administrators, and trustees can be held liable for breaches of their duties. They are expected to act in the best interests of the beneficiaries and the estate. If they fail to do so, legal action can be taken with the help of a breach of fiduciary duty attorney in Cleveland.
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What constitutes a breach of fiduciary duty in Ohio?A breach of fiduciary duty in Ohio occurs when a fiduciary, such as an executor or trustee, fails to act in the best interests of the beneficiaries. This can include actions like mismanaging assets, failing to distribute assets properly, or engaging in self-dealing. If you suspect a breach, consulting with a breach of fiduciary duty attorney in Cleveland can help protect your interests.