Trustees and executors are usually only indicted for a crime in the most severe cases. In our experience, it is highly unlikely that a breach of fiduciary duty that involves theft or fraud will escalate to a criminal charge. If a fiduciary takes property worth more than $950, they can face charges for felony embezzlement, which can lead to a sentence of up to 3 years in jail. In California, breaching a fiduciary duty through theft or embezzlement is considered a misdemeanor crime when the value of the stolen assets is $950 or less and is punishable by up to 6 months in county jail. However, far more often than not, prosecutors do not have the resources to pursue criminal charges against fiduciaries who breach their duties and allow the civil courts to resolve these issues. Yes, technically you can go to jail for some breaches of fiduciary duty, such as theft, fraud, and embezzlement. Can you go to jail for breach of fiduciary duty? This includes attorney fees, expert witness fees, filing fees, and court costs. In addition to damages, the fiduciary may be required to reimburse the beneficiary for the fees and costs incurred due to the legal action the breach forced them to take.
In some situations, double and treble damages may be available as statutory remedies that double or triple the amount of compensatory damages the fiduciary must pay under certain laws. On the other hand, punitive damages serve to punish the fiduciary for their wrong actions by requiring them to pay an additional amount of money on top of the compensatory damages. In other words, this type of damages reimburses the trust, estate or beneficiary for the money they lost as a direct consequence of the fiduciary’s breach of duty. Compensatory damages are intended to make the injured beneficiary “whole” again after the breach. When it comes to money damages, fiduciaries who violate their duties may be ordered to pay compensatory damages, punitive damages, or double or treble damage. The most frequent penalties for breach of fiduciary duty include suspension or removal as trustee or executor and the payment of money damages, attorney fees, and court costs. What is the penalty for breach of fiduciary duty? In the rarest of cases, fiduciaries can face criminal charges.
In the case of an executor or trustee, a breach of fiduciary duty may result in their suspension, removal and/or a surcharge – a court order requiring them to pay money damages for the harm caused by the breach. If a fiduciary fails to comply with these responsibilities, they may have breached their fiduciary duty. Remain transparent about all relevant, material information.Treat all beneficiaries fairly with honor and care.Place all beneficiaries’ interests above their own.Because of the fiduciary duty owed by trustees and executors, they are legally obligated to:
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