Where there is a relationship of trust and reliance between two people, that relationship gives rise to a fiduciary relationship. A fiduciary is subject to a higher degree of duty that obligates that fiduciary to act in good faith and with care and loyalty to further the other’s best interests.
Examples of fiduciaries include:
A guardian appointed by a court to care for an incapacitated person and manage his/her personal/medical affairs;
A conservator appointed by a court to manage the assets and/or financial affairs for a person who needs assistance;
An agent under a person’s medical and/or financial power of attorney;
A personal representative/executor who is appointed by a court to administer the estate of a deceased person; and
A trustee who is court appointed or nominated in a trust who is responsible for administering the trust assets.
Taking on any one of the above fiduciary roles is an enormous responsibility and one that should not be undertaken without being informed about the duties it entails. Colorado has enacted numerous statutes specifically detailing the fiduciary duties of those fiduciaries listed above. In some cases, family members or other interested persons allege that a fiduciary did not comply with his/her fiduciary duties. Sometimes this results in a lawsuit against the fiduciary. This type of lawsuit is called a breach of fiduciary action. In such cases, it is recommended that the fiduciary hire legal counsel to advise them regarding their actions and defend their decisions. For these reasons, it is extremely beneficial for a fiduciary to hire legal counsel at the outset of their fiduciary role to advise him/her about their duties and to seek advice before he/she take certain actions.
Golombek Law, LLC has extensive experience representing fiduciaries alleged to have breached their fiduciary duties as well as representing interested persons alleging a breach of fiduciary duty. If you are engaged in a dispute that may involve a breach of fiduciary duty, Golombek Law, LLC can help counsel you about your rights and legal obligations.