What Is a Breach of Fiduciary Duty in an Estate or Trust?

Understanding Fiduciary Duty in Arizona

When someone serves as a trustee, personal representative, or agent under power of attorney, Arizona law imposes a fiduciary duty — the highest standard of care recognized by law. This means they must always act honestly, prudently, and solely in the best interests of the estate or beneficiaries.

A fiduciary’s obligations include:

• Managing assets responsibly and transparently

• Following the terms of the will, trust, or court order

• Avoiding self-dealing or conflicts of interest

• Keeping accurate records and providing timely accountings

If a fiduciary violates these duties, they can be held legally liable for any resulting losses.

Examples of Breach of Fiduciary Duty

Common breaches in estate and trust cases include:

• Misuse of funds: Spending or transferring assets for personal gain

• Failure to distribute assets: Delaying or withholding distributions without justification

• Poor recordkeeping: Failing to keep or disclose financial records

• Self-dealing: Selling estate assets to themselves or a family member

• Neglect: Ignoring investment duties or allowing property to lose value

• Failure to Seek Instructions:  Failing to ask the Court for direction or clarification in the event of any uncertainty or conflict

Even well-meaning fiduciaries can breach their duties through carelessness, such as failing to insure or maintain estate property.

Remedies for Breach of Fiduciary Duty

Beneficiaries and co-fiduciaries can seek court intervention to:

• Compel an accounting

• Recover damages or lost assets

• Remove or suspend the fiduciary

• Impose a surcharge (financial penalty) for losses caused by misconduct

• Void improper transactions

• Seek clarification or directions from the Court

In serious cases, court may award attorney’s fees and costs to the harmed beneficiaries.

How to Prove a Breach of Fiduciary Duty in Arizona

To succeed in a breach of fiduciary duty claim, the petitioner/plaintiff generally must prove:

1. A fiduciary relationship existed;

2. The fiduciary breached a duty; and

3. The breach caused harm or financial loss.

Arizona courts evaluate whether the fiduciary acted in good faith and with reasonable prudence — not merely whether a mistake occurred.

At Berk Law Group, We Hold Fiduciaries Accountable

Whether you’re a beneficiary concerned about misconduct or a fiduciary facing allegations, our Scottsdale, Arizona trust and estate litigation attorneys can help. We’ve recovered mismanaged assets, removed bad actors, and defended honest fiduciaries throughout Arizona.  Contact us today to schedule a confidential consultation and safeguard your financial interests.

Learn More About How We Hold Fiduciaries Accountable

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