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Can You Pursue Legal Action for Breach of Fiduciary Duty?

Question from sandy, Can You Pursue Legal Action for Breach of Fiduciary Duty?

Answer from AI:

When a person is given power of attorney (POA), they are entrusted with significant responsibilities and are expected to act in the best interests of the grantor. A breach of fiduciary duty occurs when the person with POA acts against these interests, such as misappropriating funds. If you find yourself in a situation where your stepmother, who had power of attorney for your father, misused her position to divert his assets to her daughter, leaving you and potentially other rightful heirs without your due inheritance, you may have grounds to take legal action. Here’s what you need to know:

Understanding Breach of Fiduciary Duty

A fiduciary duty is a legal obligation of one party to act in the best interest of another. The fiduciary is the individual who is entrusted with responsibility, such as a power of attorney, and the principal is the person who grants this power. Breach of this duty can include actions like theft, fraud, or mismanagement of assets.

Legal Steps to Consider

  1. Consult a Probate or Estate Attorney: Given the complexity of estate laws and the serious allegations of theft and breach of fiduciary duty, it’s crucial to seek legal advice. An attorney can provide guidance tailored to your specific situation.
  2. Initiate a Legal Action: Your attorney may suggest filing a lawsuit against your stepmother for breach of fidiciary duty. This could potentially lead to the recovery of stolen assets.
  3. Report the Theft: If there’s clear evidence of theft, reporting the matter to law enforcement is an option. While criminal charges may or may not be pursued, having an official report can support your civil case.
  4. Probate Court: If your father’s estate is in probate, your attorney might file a claim within the probate proceedings, challenging the actions of your stepmother and seeking restitution.

Potential Penalties and Outcomes

The consequences for a breach of fiduciary duty can vary widely depending on the specifics of the case, including the jurisdiction and the amount of money involved. Potential penalties and outcomes might include:

  • Restitution: The court may order the return of stolen assets or compensation for their value.
  • Removal and Replacement: If the fiduciary is currently serving in any official capacity (e.g., executor of an estate), the court can remove them and appoint someone else.
  • Criminal Charges: In cases where the actions constitute criminal behavior (like theft or fraud), criminal charges could be pursued, leading to fines or imprisonment.
  • Civil Penalties: Beyond restitution, additional financial penalties may be imposed as punitive damages.

Important Considerations

Statute of Limitations: Be aware that there are time limits for filing legal actions, which vary by state. It’s important to act promptly.
Evidence: Gathering documentation and evidence of the breach is crucial. This can include financial records, communications, and any actions taken by the fiduciary that were against your father’s interests.
Interstate Issues: If the parties involved have moved to another state, this can complicate legal proceedings. However, it does not prevent you from taking legal action.


While the situation you’re facing is undoubtedly challenging and emotionally taxing, there are legal avenues available to address the breach of fiduciary duty and seek restitution for the misappropriated assets. It’s essential to consult with a legal professional who can guide you through the process based on the specifics of your case and the applicable laws in your jurisdiction. Remember, legal advice is crucial in navigating these complex issues and ensuring that your rights and interests are protected.

For more information on powers of attorney and fiduciary duties, you may find the American Bar Association’s resources helpful.

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