When a person creates a trust or writes a will, they may name a trustee, executor, or other fiduciary to manage assets. A trustee manages trust property, while an executor or administrator manages a probate estate after appointment by the court. These fiduciaries must follow the governing document and applicable law. If you are a beneficiary who believes a fiduciary is not performing required duties, a lawyer can explain whether legal action may be available. Peck Ritchey, LLC assists beneficiaries with trust and estate disputes.
How Peck Ritchey, LLC Helps Beneficiaries in Chicago
Peck Ritchey, LLC represents beneficiaries in trust and estate disputes across Illinois. The firm handles matters involving alleged theft, improper withdrawals, asset-distribution concerns, accounting disputes, and investment mismanagement. Kerry R. Peck and Timothy J. Ritchey have experience handling fiduciary litigation matters.
The firm assists beneficiaries in matters involving:
- Trustees who allegedly use trust funds for personal gain
- Executors or administrators who do not provide required accountings
- Fiduciaries who do not make distributions required by the governing document
- Trustees who make improper investments or transfers
The firm can discuss options for resolving a dispute through negotiation, mediation, or court proceedings. The appropriate approach depends on the trust or estate documents, the available evidence, and the circumstances of the case. The firm’s case results demonstrate matters it has handled in trust and estate litigation.
Common Signs of Mismanagement of Estate or Trust Assets
Mismanagement may take many forms. The following are potential signs that a trustee, executor, or administrator may not be fulfilling required duties.
Failure to Provide an Accounting
Trustees may have duties to provide reports or accountings to qualified beneficiaries under the Illinois Trust Code. Estate fiduciaries may also have accounting duties during estate administration. An accounting may show money received, expenses, distributions, investments, and assets remaining in the trust or estate. A refusal or prolonged delay in providing information may warrant further review.
Self-Dealing or Conflicts of Interest
Self-dealing may occur when a trustee or executor uses trust or estate assets for personal gain. Examples may include lending trust money to themselves or family members, selling trust property below market value to a friend, hiring themselves or their company for paid work, or using estate assets for personal purposes. The Illinois State Bar Association provides resources on fiduciary duties and trust administration.
Other potential signs of mismanagement include:
- Mixing personal funds with trust or estate funds
- Not paying debts, taxes, or expenses when required
- Selling or transferring assets contrary to the governing document or applicable authority
- Ignoring the terms of the will or trust
- Making investments that may not comply with the fiduciary’s duties or the trust terms
Breach of Fiduciary Duty Under Illinois Law
Illinois law imposes fiduciary duties on trustees and estate representatives. A trustee generally owes duties to beneficiaries, while an executor or administrator owes duties to the estate and interested persons. A breach of fiduciary duty may occur when a fiduciary does not fulfill a legal duty or acts contrary to the interests they are required to serve. The National Academy of Elder Law Attorneys provides resources on fiduciary duty and trust law.
The Illinois Trust Code and the Illinois Probate Act contain rules that may require fiduciaries to:
- Act loyally and avoid improper conflicts of interest
- Manage assets prudently
- Follow the terms of the trust or will
- Keep records and provide required information
- Administer the trust or estate in accordance with applicable law
When a fiduciary breaches these duties, interested parties may ask a court for relief. In a trust matter, potential remedies may include:
- Surcharge or restoration of losses to the trust
- Removal, suspension, or replacement of a trustee
- A court-ordered accounting
- Orders requiring performance of duties, return of property, or other appropriate relief
The remedy available depends on the governing documents, the nature of the alleged breach, and the evidence presented. The American Bar Association Section of Real Property, Trust and Estate Law offers resources on trust and estate litigation.
Steps in an Estate or Trust Mismanagement Claim
Taking legal action against a trustee or executor may feel overwhelming. An attorney can explain the steps that may apply to your circumstances.
Investigation and Filing
An attorney may first review relevant documents, including the trust document or will, bank statements, tax returns, accountings, and communications with the fiduciary. In some cases, a forensic accountant or other qualified professional may review records for undisclosed assets or questionable transfers.
If court action is appropriate, an interested person may file a petition in the court with jurisdiction over the estate or trust. The proper venue for a trust matter may depend on the trust’s principal place of administration, while probate estate matters are generally handled in the county where the estate proceeding is pending. The petition may identify the alleged conduct and request specific relief. The firm’s decedent’s estate litigation page provides information about estate litigation.
Litigation or Settlement
Some disputes may resolve through negotiation or mediation. If the parties do not reach an agreement, the court may decide the disputed issues after reviewing the evidence. An attorney can discuss the available options and potential remedies. The firm’s legal team has experience litigating fiduciary disputes in Cook County courts.
Frequently Asked Questions About Trust and Estate Mismanagement
What is the definition of mismanagement of estate or trust assets?
Mismanagement may occur when a trustee, executor, administrator, or other fiduciary does not properly handle, invest, distribute, or account for assets under their control. Examples may include self-dealing, failing to provide required information, making improper distributions, or not fulfilling fiduciary duties.
Who can file a claim for mismanagement?
Qualified trust beneficiaries, heirs, beneficiaries, co-trustees, co-executors, and other interested persons may have standing to bring a claim, depending on the type of trust or estate matter. Whether a person may file depends on their legal interest and the specific facts.
How long do I have to file a claim in Illinois?
The deadline depends on the type of claim and the facts. For a breach-of-trust claim, the Illinois Trust Code may bar an action earlier when an accounting or other written disclosure adequately identifies the matter and informs the beneficiary of the applicable time limit. If no earlier deadline applies, a judicial proceeding for breach of trust generally must begin within five years after certain events, including the trustee’s removal, resignation, or death; termination of the beneficiary’s interest; or termination of the trust. Estate-related claims may be subject to different deadlines.
What damages can I recover?
A court may order a trustee who breached a duty to restore the trust property and distributions to the value they would have had without the breach, or to account for any benefit the trustee received from the breach. Courts may also order an accounting, removal, restoration of property, or other appropriate relief. Attorney fees and punitive damages may be available only in certain circumstances and depend on the claim and evidence.
Contact Peck Ritchey, LLC About Estate or Trust Mismanagement Today
If you believe a trustee, executor, or administrator may be mismanaging estate or trust assets, Peck Ritchey, LLC can discuss your situation and explain available legal options. Call (312) 201-0900 to schedule a consultation.