Suing a Trustee for Breach of Fiduciary Duty in Nevada
In Nevada, a trustee is the person designated to be the owner and manager of trust assets. Nevada State Law requires trustees to be even more careful with the trust assets than they would be with their own. This is called a fiduciary standard of care. Generally, trustees have five fiduciary duties:
- Keep beneficiaries informed about how the trust assets are being managed
- Distribute assets as the trust document requires, including paying taxes, debts, and expenses
- Protect the trust’s beneficiaries’ interests and ensure all decisions favor them over anyone else
- Remain impartial and never favor one beneficiary over another
- Cautiously manage the trust’s assets and continually evaluate if there are more appropriate investments
Generally, trustees must protect trust assets and ensure they retain their value through proper handling and maintenance. They must be sure that valuables are insured and kept secure. But, what happens if a trustee has breached that fiduciary duty?If you think a trustee has acted improperly, you may need to take action to ensure the trustee’s actions are corrected. At times, this may require legal action against the trustee to make the trust and its beneficiaries whole. In order to take such actions, you should get legal counsel that is familiar with estates and trusts in Nevada.
Things Trustees Cannot do According to Nevada State Law
A trustee’s fiduciary duty requires that they must not do any of the following:
- Deposit trust funds into a personal account or personal safe deposit box
- Deposit personal funds into a trust account
- Co-mingle assets from the trust with any other assets
- Make speculative investments or investments that might potentially benefit you or your business, unless authorized by a court or the trust document
- Make loans without proper documentation
- Move assets into an investment that is not properly documented
- Accept assets in their name without identifying that they are a trustee
- Take any action without the consent of any co-trustees
Beneficiaries can sue the trustee if the trustee does not act prudently.
Clark County and Other Nevada Courts can take Action Against Trustees
When a trustee violates or threatens to violate their fiduciary duties, a beneficiary or co-trustee may ask the court to:
- Compel the trustee to perform appropriately
- Remove the trustee
- Deny or reduce compensation to the trustee
- Stop the trustee from administering the trust
- Stop the trustee from distributing any assets of the trust
Because the law has specific requirements and time frames for filing a suit against a trustee, it’s very important to hire a Nevada trust and estate attorney to help ensure that you have a valid claim and file it appropriately.
Choosing the Right Las Vegas Law Firm to Help You Sue a Trustee
The attorneys at LKP help beneficiaries ensure trustees fulfill their duties properly. LKP provides our clients better service because we focus only on trusts and estates. Within this legal niche, LKP ranks among the top firms in Las Vegas.If you have a trust or estate issue, call us at (702) 333-1711 or contact us online.