Okay, I'm done with you.
As I always say, NOTHING demonstrates the Dunning-Kruger Effect more vividly than a Trumpster talking about markets and economics.
See below.
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What is a fiduciary?
What is a fiduciary?
A fiduciary is someone who manages money or property for someone else. When you’re named a fiduciary and accept the role, you must –
by law – manage the person’s money and property for their benefit, not yours.
If a family member or friend wants to name you their fiduciary to help them manage their money or property in case they’re unable to, they could do so through a
power of attorney (POA). If you choose to accept this role and act on their behalf, you are required to follow the instructions and perform in accordance with the terms of the POA.
There are also other types of fiduciaries, including
guardians or conservators of property,
trustees,
Social Security representative payees, and VA fiduciaries.
As a fiduciary, you have four basic duties:
- Act only in their best interest. Because you are dealing with someone else’s money and property, your duty is to make decisions that are best for them, not you.
- Manage their money and property carefully. You will have important financial responsibilities and must carry them out with care. You might pay bills, oversee bank accounts, and pay for things they need. You might also make investments, pay taxes, collect rent or unpaid debts, and get insurance for them, if needed.
- Keep their money and property separate. Never mix their money or property with your own or someone else’s. Confused records can get you in trouble with government agencies, like adult protective services, and the police.
- Keep good records. You must keep true and complete records of their money and property, or you could face legal consequences.
Legal recourse against personal representatives, trustees, and attorneys for breaches of fiduciary duties or financial mismanagement.
When you entrust your assets to a fiduciary, you expect them to manage these resources responsibly. However, situations arise where you might find that the fiduciary is not meeting their obligations.
Mismanagement of funds can lead to significant financial losses and breaches of trust within a corporation or a family. If you suspect mismanagement or self-dealing, you might wonder whether legal action against the fiduciary is a viable option.
Understanding fiduciary’s responsibilities
Fiduciaries must follow the law, invest the trust’s assets wisely, and avoid conflicts of interest. Their actions should always benefit the trust’s beneficiaries. If fiduciary’s use the trust’s assets for their gain or make decisions that harm the trust’s value, this could constitute mismanagement.
Grounds for suing a fiduciary
You may be able to
sue a fiduciary if they engage in actions that contradict the trust’s terms or fail to preserve the trust’s assets.
Common examples of mismanagement include:
- Making poor investment choices that result in a loss of trust assets.
- Benefiting personally from the trust’s assets without consent from the beneficiaries.
- Failing to provide required accounting and information to beneficiaries.
Legal actions you can take
If you believe a fiduciary is mismanaging the trust, your first step should be to request a complete account of all trust transactions. This transparency allows you to assess how the fiduciary is managing the funds. It might be time to take legal action if the fiduciary fails to comply or if the accounts reveal questionable activities.
Beneficiaries can request the court to review the fiduciary’s actions. Several outcomes are possible if the court finds that the fiduciary has violated their
fiduciary duties. The court may order the fiduciary to repay losses or, in severe cases, replace the fiduciary altogether.
Mismanagement of trust funds is a serious concern that can impact beneficiaries significantly. If you suspect mismanagement, it’s important to act swiftly to safeguard your interests and the integrity of the trust.
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