If you have been imbued with the power of fiduciary, then it is very important to realize the serious nature of your responsibility—and the penalties that can arise from negligence or abuse of such power. If you have encountered a dispute, consult with an experienced attorney like Shane Coons to discuss your options in the case. You may have been the fiduciary for an estate plan, or more commonly, perhaps you serve in a fiduciary capacity on your HOA board.
The fiduciary is expected to act in the stead of others, foregoing their own interests in making decisions. If you are serving as a fiduciary in a financial setting or for an estate after the death of an individual, you may be someone designated by the family as well as a professional such as an accountant, banker, attorney, financial advisor, or real estate agent. Undoubtedly, you were chosen due to your experience and responsible nature. Whether you are an executor, trustee, guardian, or acting in another capacity within an estate plan, your duties may involve making very serious decisions, as well as signing off on important financial or medical decisions. You may be acting for a client or a family member—perhaps even a spouse—and in that case, you may act as the fiduciary and decision maker for all aspects of their estate plan. It is crucial to understand your duties, as well as the boundaries of your decision making and especially spending for the estate.
Another very serious area, and one where it can be all too easy to run into trouble, is that of a fiduciary for an HOA board. It is no secret that sometimes tensions can run high between homeowners and their HOAs. This is often due to rigid rules and penalties being imposed on homeowners for everything from not paying dues to violating parking rules or installing the wrong type of fence or landscaping. If you are an acting member on a HOA board, you may often be required to make informed decisions that require research and further education on topics. This is your duty, as well as keeping many details in complete confidence. Because homeowners can—and do—sue their HOAs as well as individual board members, it is crucial to understand your duties and all the bylaws of the HOA. The HOA may even offer liability insurance that would assist you in the case of a lawsuit against you.
If you are involved in a dispute or are concerned that another individual may be in breach of their fiduciary duties, call Shane Coons now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com. We can review your case, answer your questions, and help you decide how to move forward. We are here to help!