How To Avoid Fiduciary Mistakes

Last updated on March 26, 2024

Serving as a fiduciary entails significant responsibilities and the potential for missteps that could have serious implications. To effectively manage a trust or estate and avoid legal repercussions, fiduciaries must be vigilant in their duties and well-informed about common pitfalls.

Morrill Law in Walnut Creek is committed to supporting fiduciaries in their crucial roles, providing expert legal counsel to prevent and address potential errors. Our seasoned attorneys know the challenges fiduciaries face, and we are ready to help you fulfill your duties while avoiding common legal pitfalls.

Key Fiduciary Errors To Avoid

While in your role as a fiduciary, it is important to understand what kind of mistakes can result in legal action against you. Our goal as your trust and estate litigation attorneys is to help you identify potential mistakes and avoid them. Fiduciaries must steer clear of several critical mistakes to ensure the smooth administration of their duties:

• Failing to keep detailed records: Accurate record-keeping is essential for transparency and accountability.
• Poor communication: Regular and clear communication with beneficiaries is necessary to avoid misunderstandings and maintain trust.
• Misunderstanding the trust documents: A thorough comprehension of the trust terms is crucial for proper administration.
• Conflicts of interest: Fiduciaries must avoid situations where personal interests conflict with their duties to the trust or its beneficiaries.
• Neglecting to diversify investments: Prudent investment of trust assets requires diversification to minimize risks.
• Delaying distributions or actions: Timely action in administering the trust and making distributions is key to fulfilling fiduciary responsibilities.

These mistakes might appear to require intentional decisions, yet often a fiduciary commits them under the misconception that they are acting correctly. With our guidance, we can help you avoid innocent decisions that result in significant litigation. 

Secure Your Fiduciary Practice

We are fluent in the laws in California that apply to fiduciaries, and our counsel can keep you from making a mistake that can result in challenging litigation matters. If you are looking for help in your role as a fiduciary, contact our office to benefit from our lawyers. Call us at 925-255-0633 or email us here to schedule your initial consultation today.