While you technically cannot sue a family trust, you can sue the trustee of a family trust if you have a claim to assets held by that trust, or if you think that the trustee is mismanaging or stealing from the trust.
Can a trustee be held personally liable?
Yes, a trustee can be held personally liable if they are found to be in breach of duty or breach of trust. If there are accusations of self-dealing, stealing, fraud, or use of trust assets to harm a third party, trustees should work closely with a defense attorney experienced in trusts and wills.
What power does a trustee of a trust have?
The trustee has the power to acquire or dispose of property, for cash or on credit, at public or private sale, or by exchange. 16227. The trustee has the power to manage, control, divide, develop, improve, exchange, partition, change the character of, or abandon trust property or any interest therein.
What happens if a trustee breaches his fiduciary duty?
If the trustee has breached their duties the court may order their fees denied over a given period, or up to a certain amount, and the trustee will be barred from using any of the trust’s money to pay for attorney fees. Illinois courts reserve the right to remove a trustee if a breach in fiduciary duties has taken place.
Can a trustee be liable for a breach of trust?
If the trustee makes informed decisions, exercises caution when appropriate, follows the guidelines set forth in the trust and takes his or her fiduciary responsibilities seriously, it is unlikely that the trustee would be liable for breach of trust.
What are the fiduciary duties of a trust?
1 Duty of loyalty: The trustee must act solely in the interest of the beneficiaries; 2 Duty of Care: The trustee must manage the estate in accordance with the law and the guidelines set forth in the trust; 3 Duty of Impartiality: The trustee must treat all the beneficiaries equally
When does a beneficiary file a breach of trust?
The trustee fails to stop a co-trustee or other responsible party from acting in a way that constitutes a breach of trust; any co-trustees are jointly responsible for the behavior of all. If a beneficiary wants to file a breach of trust against a trustee, he or she must generally do so within one year of the incident’s original documentation.
