A trustee is responsible for managing the assets of a trust for the benefit of another. In order to protect the interests of the beneficiaries, the trustee must comply with certain duties including: duty of loyalty to not seek any advantage from a beneficiary; duty to avoid conflicts of interests; duty of impartiality; duty of disclosure; duty to keep trust property separate from own property; duty to inform and account to beneficiaries; and duty of prudence and care.
If a trustee has breached a fiduciary duty, there are several avenues of a relief a beneficiary can choose from. If a trustee breaches a fiduciary duty, the beneficiary may compel the trustee to compensate for the breach; appoint a temporary trustee; remove the trustee; set aside acts of the trustee; account of profits; reduce/deny compensation of the trustee; or impose a constructive trust on trust property. If the trustee's breach causes a loss, the beneficiary may seek compensatory damages against the trustee. Under Colorado Revised Statute § 15-10-501, the courts have substantial power in supervising and ensuring that the trustee is properly managing the trust. For example, the courts can request a review of the fiduciary's activities if the court is notified that the trustee may be acting against the interests of the beneficiaries. Our attorneys can assist you in determining whether a trustee has breached their duty and advise you of the relief you deserve. |
