What are the possible consequences of a breach of fiduciary duty?
A fiduciary duty requires a person to act in the best interest of another party when managing their assets, estate, or finances. A breach of fiduciary duty occurs when the person does not act in the best interest of the other party. In Maryland, this breach can have serious legal consequences. First, the fiduciary may be responsible for paying back any money they have taken or lost. They may have to pay restitution for the full amount, as well as any related legal expenses. The fiduciary may also be subject to criminal penalties, such as fines, jail time, or other criminal sanctions. Second, a breach of fiduciary duty can lead to civil legal action. A party’s close friends or family members may seek to take the fiduciary to court to recover money that was wrongfully taken or lost. In Maryland, a successful civil lawsuit can result in a judgment against the fiduciary, which can include compensatory or punitive damages. Third, a breach of fiduciary duty may put the fiduciary’s ability to manage someone else’s finances or assets in jeopardy. The court may remove the fiduciary and appoint a new one, or limit their ability to manage the assets in question. The court may also order the fiduciary to provide an accounting of all of their financial transactions. In summary, a breach of fiduciary duty can have serious consequences in Maryland. The fiduciary may be subject to criminal and civil penalties, and they may also lose their ability to manage the assets of another person.
Related FAQs
What are the roles of a trust officer, trust attorney, and trust accountant?What is the purpose of a trust indenture?
What are the advantages and disadvantages of a living trust?
What is an irrevocable trust?
What is a trustee bond?
What kind of investments are allowed in a trust?
What is the meaning of an executor?
Who is entitled to inherit property?
What are the trust funding requirements?
What is an estate freeze?
Related Blog Posts
Understanding the Basics of Inheritance Laws: A Guide to Successfully Navigating State and Federal Statutes - July 31, 2023How to Ensure Your Estate Plan Reflects Your Wishes Through Inheritance Laws - August 7, 2023
Protect Your Rights as a Beneficiary: Understanding Your Legal Rights After Beneficiary Inheritance - August 14, 2023
Comprehending the Duties and Responsibilities of Executors of Estates: How to Properly Administer an Estate and Fulfill Inheritance Law Requirements - August 21, 2023
Maximizing the Benefits of Inheritance Law for Family Heirs of Estates - August 28, 2023