Breach of Fiduciary Duties Denver
Meurer & Potter Law Office, Denver, Colorado
When a trustee, personal representative, guardian, or conservator fails to act in the best interests of the people they are legally obligated to protect, they have breached their fiduciary duty. In Colorado, fiduciaries are held to the highest standard of care in civil law, and violations can result in personal liability, removal from office, and an obligation to pay the other party’s attorney fees.
At Meurer & Potter, P.C., our Denver attorneys represent both beneficiaries who believe a fiduciary has acted improperly and fiduciaries who are defending against breach allegations. We handle breach of fiduciary duty cases involving Personal Representatives (executors) in probate, trustees in trust administration, guardians and conservators, and agents acting under a power of attorney. We’ve been litigating fiduciary disputes in Colorado courts since 1991.
Call 303-991-3544 for a free consultation about a fiduciary dispute.
Common Types of Fiduciary Breach
Self-dealing is the most common breach—using trust or estate assets for the fiduciary’s own benefit, purchasing assets from the estate at below-market value, or directing business opportunities to the fiduciary’s personal interests. Failure to account occurs when a fiduciary does not provide required financial reports to beneficiaries or the court. Under Colorado law, trustees must provide annual accountings under § 15-5-813. Mismanagement of investments—failing to diversify, taking inappropriate risks, or ignoring the Prudent Investor Act—exposes the fiduciary to liability for investment losses. Failure to distribute assets in accordance with the will, trust, or court order is a breach. Commingling personal and estate/trust funds violates the fundamental duty to keep fiduciary assets separate. Favoritism among beneficiaries—violating the duty of impartiality by treating beneficiaries unequally without authorization from the governing document—is actionable.
Remedies for Breach of Fiduciary Duty in Colorado
Colorado provides several remedies when a fiduciary breaches their duty. The court can remove the fiduciary and appoint a replacement, order the fiduciary to restore losses caused by the breach (surcharge), award attorney fees and costs to the prevailing party, reduce or deny the fiduciary’s compensation, and impose fines and sanctions under Colorado’s 2008 fiduciary accountability laws. Under Colorado common law, a beneficiary who establishes breach of trust can recover reasonable attorney fees from the fiduciary personally.
Suspect a fiduciary breach? Call 303-991-3544 for experienced representation.
Frequently Asked Questions About Breach of Fiduciary Duties
Our FAQs offer practical guidance about will breach of fiduciary duties. They are written to help you stay informed, not overwhelmed.
A fiduciary duty is the legal obligation to act in the best interests of another person. Trustees, executors, guardians, conservators, and agents under a power of attorney are all fiduciaries. They must act with loyalty, prudence, and good faith, and they can be held personally liable for failures.
Yes. Beneficiaries can bring a legal action against a trustee who breaches their duties. If the court finds breach, the trustee can be held personally liable for losses, required to pay attorney fees, removed from their position, and denied compensation.
You must show that a fiduciary relationship existed, the fiduciary breached a specific duty (loyalty, prudence, accounting, impartiality), and the breach caused financial harm. Evidence typically includes financial records, trust accountings, communications, and expert testimony.
Yes. A fiduciary who breaches their duties can be required to personally pay for losses caused by the breach, return improperly taken assets, and pay the other party’s attorney fees. Colorado’s 2008 amendments also allow courts to impose fines and sanctions.
Document everything. Request formal accountings from the fiduciary. If the fiduciary refuses or the accounting reveals problems, contact a probate litigation attorney immediately. Time is critical; assets can be dissipated quickly once mismanagement begins.