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Fiduciary

“It’s All Greek to Me”: Fiduciary

By Estate Planning, Probate

 In this series of blog posts, we define esoteric legal terms and explain how they are used in law.

The word “fiduciary” has many meanings in law, but the Merriam-Webster definition ties together all uses of the word nicely: “of, relating to, or involving a confidence or trust.” Whether the term is applied to a will, a trust, or a power of attorney, it is the duty of the fiduciary to act in the best interest of his/her client, their estate, and their beneficiaries.

When it comes to probate, the fiduciary acts as the “Personal Representative” (a.k.a., “executor”) of the Will – the person in charge of distributing the assets and seeing the probate administration to its completion. The Personal Representative can be compensated for his/her services, known as “costs of administration.”

A trustee of a trust is the person appointed to hold and invest the assets of the trust. The fiduciary agent named under a power of attorney, like the trustee, has powers and responsibilities that go into effect as soon as the documents are signed.

May 14, 2019
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What constitutes a breach of fiduciary duty?

By Estate Planning, Probate

A fiduciary is an individual who has a duty to act in the best interests of another. There are many kinds of fiduciary relationships, but some of the most common are guardian-ward relationships, trustee-beneficiary relationships, and agent-principal relationships.

There is no one method by which a fiduciary duty may arise: certainly, a fiduciary relationship may be established explicitly, by contract, for example. But a fiduciary relationship can also be legally binding if it is established implicitly, without formal documents. Court cases surrounding breaches of fiduciary duties often hinge on the question of whether there existed a fiduciary relationship to have been breached in the first place.

With a Trust, the trustee acts as the fiduciary to the beneficiaries of the Trust, whereas in a probate, the personal representative of the estate acts as the fiduciary to the heirs of the estate. If you are Personal Representative or Trustee and are being accused of breaching your fiduciary duties, contact the trust and estate litigators of Bach, Jacobs & Byrne, P.A. to discuss your defense. Call us at (941) 906-1231 to set up a consultation.

May 2, 2019
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“It’s All Greek to Me”: Settlor vs. Grantor vs. Trustor

By Estate Planning

We turn to Florida Statute §736.0103 for the legal definition of “settlor”: “a person, including a testator, who creates or contributes property to a Trust.” Florida Statute §731.201 defines “grantor” as: “one who creates or adds to a Trust and includes ‘settlor’ or ‘trustor’ and a testator who creates or adds a Trust.”

Do the terms seem confusingly similar? If so, it is probably because “settlor,” “grantor,” and “trustor” all have the same basic meaning: the person who creates a Trust. Today, one might even come across the word “trustmaker,” which – you guessed it – also means the same thing.

            If you are a settlor, grantor, trustor, or trustmaker (or hope to be someday) and would like help preparing or reviewing your estate plan documents, please call the attorneys of Bach, Jacobs & Byrne, P.A. at (941) 906-1231.

January 24, 2019
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