What amounts to a breach of trust?

Asked by: Jasper Aufderhar  |  Last update: February 16, 2026
Score: 4.7/5 (57 votes)

Here are some common examples of how a trustee may commit a breach of trust: Engaging in “self-dealing” by placing their own interests above those of the trust beneficiaries. Co-mingling personal funds with trust funds. Favoring one beneficiary to the detriment of one or more other beneficiaries.

What qualifies as a breach of trust?

Meaning of breach of trust in English

a failure to act responsibly for someone who has given you something to keep safe, for example money or a company's secret information: The company initiated legal proceedings alleging industrial espionage and breach of trust.

What is the burden of proof for breach of trust?

Burden of Proof

This means that the petitioner must provide sufficient evidence to support their claims. However, in cases of alleged fraud or undue influence, the burden of proof may shift to the trustee or the party defending the trust.

What are the elements of breach of trust?

Common allegations of breach of trust include (i) distributing assets to a beneficiary not entitled to them under the trust deed; (ii) investing trust assets in a way not permitted; (iii) breach of fiduciary duty; and (iv) breach of the common law or statutory duty of care.

How do you prove a breach of fiduciary?

The four elements are:
  1. The defendant was acting as a fiduciary of the plaintiff;
  2. The defendant breached a fiduciary duty to the plaintiff;
  3. The plaintiff suffered damages as a result of the breach; and.
  4. The defendant's breach of fiduciary duty caused the plaintiff's damages.

What Is a Breach of Trust? | RMO Lawyers

17 related questions found

How can trust be violated?

Trust violations can range from serious misdeeds that constitute fraud (Business Week, 1992; Los Angeles Times, 1998; Santoro & Paine, 1993) to more common forms of trust violations, such as the use of deception in negotiations (Boles, Croson, & Murnighan, 2000; Carr, 1968; O'Connor & Carnevale, 1997; Schweitzer & ...

Can I sue for breach of trust?

In California, beneficiaries have the right to sue trustees who fail to meet their fiduciary obligations. Understanding the legal grounds and process for such lawsuits is essential for protecting beneficiaries' interests and ensuring trustees fulfill their duties responsibly.

What is the defense to a breach of trust?

The intent to defraud in a breach of trust offence is limited in scope and must be directed to the trust duties. As such, a defence to a breach of trust charge might be that a trustee's fraudulent actions were not directed to their trust duties.

What are the consequences of a breach of trust?

The actions that can be brought against trustees for breach are to remove or replace them, obtain documents or information that the trustees have been withholding, obtain copies of the Trust accounts, or make the trustee pay back any financial loss to the Trust.

What are punitive damages for breach of trust?

Punitive damages are recoverable in a breach of fiduciary duty case when the plaintiff is able to prove by clear and convincing evidence that the breach was oppressive, fraudulent, or malicious.

What happens when trust is breached?

Where the trustee commits a breach of trust, he is liable to make good the loss which the trust-property or the beneficiary has thereby sustained, unless the beneficiary has by fraud induced the trustee to commit the breach, or the beneficiary, being competent to contract, has himself, without coercion or undue ...

What is the malfeasance of a trust?

Trustee malfeasance refers to any type of negligent, self-serving, erroneous, or retaliatory conduct committed by the trustee of a trust resulting in harm to trust assets or beneficiaries. Trustee malfeasance is a broad term encompassing many different types of offenses, both intentional and unintentional.

Is breach of trust a financial crime?

There are a multitude of different types of financial crimes, like embezzlement, breach of trust, financial transaction card fraud and theft, and forgery. Anyone can commit these types of crimes. A breach of trust requires a reasonable degree of authority over someone else's finances to execute.

What constitutes a breach of trust and confidence?

If an employer breaches the duty of trust and confidence

Examples of how an employer might breach this duty include: refusing or failing to look into an employee's grievance. demoting an employee without a good reason.

What constitutes a breach of trust?

n. 1) any act which is in violation of the duties of a trustee or of the terms of a trust. Such a breach need not be intentional or with malice, but can be due to negligence. 2) breaking a promise or confidence. See also: breach.

How do you fix a breach of trust?

Rebuilding trust in relationships requires us to be vulnerable and courageous. We have to acknowledge we did something wrong, apologize for our behavior, and act in ways that repair the damage we caused. However, the net result can be even stronger levels of trust.

Can you go to jail for breach of trust?

Under California law, stealing trust assets with a value of $950 or less is a misdemeanor with a maximum jail sentence of 6 months.

How hard is it to sue a trust?

Generally, no you cannot sue a trust directly. Again, that's because a trust is a legal entity, not a person. It's possible, however, to sue the trustee of a trust whether that trust is revocable or irrevocable. As mentioned, in the case of a creditor lawsuit the trustee of a revocable living trust could be sued.

Who holds the real power in a trust, the trustee or the beneficiary?

This is a fundamental concept of trust law: the separation of legal and equitable title. In other words, while the trustee has the legal authority to manage and control the assets, they do so not for their own benefit, but for the beneficiaries.

What is a violation of trust?

Breach of trust in legal contexts refers to breaking the rules of a trust or a person taking advantage of property given to them for a period of time.

What can a trustee not do?

What a Trustee Cannot Do
  • Use Trust Assets for Personal Gain. ...
  • Ignore or Mismanage Trust Assets. ...
  • Making Decisions Without Due Consideration. ...
  • Disclose Confidential Information. ...
  • Delegating Responsibilities Without Appropriate Oversight. ...
  • Making Decisions Based on Conflict of Interest. ...
  • Act Outside the Scope of a Trust.

How to deal with a breach of trust?

What are effective ways to deal with a professional trust breach?
  1. Acknowledge the breach. Be the first to add your personal experience.
  2. Seek to understand. Be the first to add your personal experience.
  3. Repair the damage. ...
  4. Rebuild the trust. ...
  5. Move forward. ...
  6. Maintain the trust. ...
  7. Here's what else to consider.

What voids a trust?

Who can void a trust? Under California Probate Code §17200, a trustee or beneficiary of a trust may petition the court to determine the existence of the trust. This means that any potential, current, or previous beneficiary can file a petition to void a trust, as can a trustee or co-trustee.