What Is a Breach of Fiduciary Duty?

When a loved one creates an estate plan, they often place significant trust in another person to carry out their wishes. Whether that person is serving as an executor, trustee, or agent under a power of attorney, they are expected to act with integrity and put the interests of others ahead of their own.

Most fiduciaries take these responsibilities seriously. Unfortunately, disputes sometimes arise when beneficiaries suspect that a fiduciary has mishandled assets, concealed information, or used their position for personal gain.

These situations can create financial losses, family conflict, and delays in estate administration. Understanding what constitutes a breach of fiduciary duty under Florida law can help beneficiaries recognize potential problems and determine whether legal action may be necessary.

Key Takeaways About Breach of Fiduciary Duty in Florida

• Fiduciaries have a legal duty to act in the best interests of others
• Executors, trustees, and agents under powers of attorney commonly serve as fiduciaries
• A breach may involve misconduct, self-dealing, negligence, or dishonesty
• Beneficiaries may have legal remedies when a breach occurs
• Florida courts can remove fiduciaries who fail to fulfill their obligations
• Early legal action can help protect assets and preserve evidence

What Is a Fiduciary?

A fiduciary is a person who has a legal obligation to act in the best interests of another person or entity. This relationship requires a high level of trust, honesty, and loyalty.

In estate and probate matters, fiduciaries often have control over money, property, or important decisions affecting others. Because of this authority, Florida law holds fiduciaries to a higher standard of conduct than ordinary individuals.

Common fiduciaries in estate planning and probate include personal representatives, trustees, guardians, and agents acting under powers of attorney.

What Duties Does a Fiduciary Owe?

The specific duties depend on the fiduciary’s role, but several core obligations apply in most situations.

The Duty of Loyalty

A fiduciary must put the interests of beneficiaries or the estate ahead of their own personal interests. This means they cannot use their position to enrich themselves at the expense of the people they are supposed to protect. Decisions should always be made based on what benefits the estate, trust, or principal—not the fiduciary personally.

The Duty of Care

Fiduciaries must manage assets responsibly and exercise reasonable care when making decisions. For example, a trustee overseeing trust assets must act prudently when managing investments and protecting property, which can help assets avoid probate. Similarly, a personal representative must safeguard estate assets during probate administration.

The Duty to Inform and Account

Beneficiaries are often entitled to receive information about how assets are being managed. Fiduciaries generally have a duty to maintain records, provide accountings when required, and communicate important information to interested parties. 

What Are Common Examples of a Breach of Fiduciary Duty?

Not every mistake constitutes a breach of fiduciary duty. However, certain types of conduct frequently lead to disputes and litigation.

Self-Dealing

Self-dealing occurs when a fiduciary uses their position to benefit themselves rather than the people they serve. For example, an executor might sell estate property to themselves at a below-market price, or a trustee might use trust assets for personal expenses. These actions often violate the duty of loyalty and may result in court intervention.

Misappropriation of Assets

One of the most serious breaches occurs when a fiduciary improperly takes or uses assets belonging to the estate, trust, or principal. Examples may include withdrawing funds for personal use, transferring property without authorization, or concealing financial transactions from beneficiaries.

Failure to Follow Legal Obligations

Sometimes, fiduciaries breach their duties through neglect rather than intentional misconduct. Missing deadlines, failing to pay estate debts, neglecting trust administration requirements, or ignoring court orders can create significant problems and expose beneficiaries to financial harm.

Lack of Transparency

A fiduciary who refuses to provide information, hides records, or fails to communicate with beneficiaries may face allegations of misconduct. While some delays or misunderstandings may happen, consistent secrecy often raises concerns about whether assets are being handled properly.

How Do Breach of Fiduciary Duty Claims Arise in Probate Cases?

Probate disputes frequently involve allegations that a personal representative has failed to administer an estate appropriately. Florida personal representatives owe fiduciary duties to both the estate and its beneficiaries. 

Disputes may arise when beneficiaries believe the executor has:

• Mishandled estate assets
• Delayed distributions unnecessarily
• Failed to provide legally required information
• Acted in their own interests rather than those of the estate

Because personal representatives control significant aspects of estate administration, their actions are often subject to close scrutiny by Florida courts.

Can Trustees Breach Their Fiduciary Duties?

Yes. Trustees are among the most common fiduciaries involved in breach of duty claims.

A trustee is responsible for administering trust assets in accordance with the trust document and Florida law. This includes managing investments, making distributions, maintaining records, and acting in the beneficiaries’ best interests.

Florida’s Trust Code imposes numerous fiduciary obligations on trustees. When trustees place their own interests above those of beneficiaries or fail to administer the trust properly, disputes often follow.

What Happens If a Fiduciary Breaches Their Duties?

Florida courts have broad authority to address fiduciary misconduct. Depending on the circumstances, the court may:

Removal of the Fiduciary

In serious cases, the court may remove an executor, trustee, or other fiduciary and appoint a replacement. This remedy is often used when the fiduciary can no longer be trusted to fulfill their responsibilities properly.

Impose Financial Liability

A fiduciary who causes financial harm may be personally liable for losses resulting from their actions. For example, a trustee who improperly spends trust funds may be ordered to reimburse the trust. Similarly, an executor who wastes estate assets may be required to compensate beneficiaries for resulting losses.

Order Judicial Oversight

Courts may also require accountings, order corrective action, or impose additional oversight to protect beneficiaries and estate assets.

The appropriate remedy depends on the nature and severity of the misconduct.

How Can You Prove a Breach of Fiduciary Duty?

These cases often depend on documentation and financial evidence. Important evidence may include:

• Bank records
• Trust accountings
• Estate inventories
• Emails and correspondence
• Court filings
• Witness testimony

The goal is typically to show that a fiduciary owed a duty, violated that duty, and caused harm as a result. Because these disputes often involve complex financial records, gathering evidence early can be important.

Why Taking Legal Action Quickly Can Matter

When fiduciary misconduct is suspected, waiting too long to act can create additional challenges. Financial records may become harder to obtain, assets may be distributed, and opportunities to prevent further losses may disappear. In some cases, legal deadlines may also affect available remedies.

Seeking legal guidance from a skilled estate law attorney early can help preserve evidence and clarify what options may be available under Florida law.

FAQs About Breach of Fiduciary Duty in Florida

Can a family member serving as executor be sued for breach of fiduciary duty?

Yes. Family relationships do not excuse fiduciaries from their legal obligations. An executor who breaches fiduciary duties may face legal claims regardless of their relationship to the beneficiaries.

Can a fiduciary be criminally charged?

In some situations, yes. If a fiduciary steals assets, commits fraud, or engages in other criminal conduct, civil liability may be accompanied by criminal consequences.

Are beneficiaries entitled to review financial records?

Often, yes. Beneficiaries may have rights to receive accountings and other information depending on the type of fiduciary relationship involved.

Can a breach of fiduciary duty occur before someone dies?

Yes. Agents acting under powers of attorney, guardians, and trustees can breach fiduciary duties both during a person’s lifetime and after death.

Talk to a Florida Probate Attorney at The Estate Plan About Fiduciary Misconduct

When someone is entrusted with managing an estate, trust, or another person’s affairs, beneficiaries have a right to expect honesty, transparency, and responsible decision-making. If you believe a fiduciary has violated those obligations, understanding your legal rights is an important first step.

The Estate Plan team helps families throughout Florida address probate disputes, trust litigation, and fiduciary misconduct claims with compassionate guidance and personalized legal support. To learn more about your options or discuss concerns about a breach of fiduciary duty, contact The Estate Plan today at (305) 735-2689 to schedule a consultation.