What is Fiduciary Litigation and how is it used in the state of Maryland? When a loved one passes away or can no longer manage their own affairs, someone has to step in and take charge of their money, property, and final wishes. Maryland law calls that person a fiduciary. A fiduciary may be a personal representative handling an estate, a trustee managing a trust, a guardian of the property appointed by a court, or an agent acting under a power of attorney. Each role carries serious legal duties. When a fiduciary fails to honor those duties, fiduciary litigation may be the best way to protect the people and assets involved.
At The Law Office of Brian Gormley LLC, we help Maryland beneficiaries, heirs, families, and fiduciaries work through these disputes with clarity and purpose and have done so for 25+ years.
The Duties a Fiduciary Owes
Estate planning attorney Chevy Chase MD Many do not know that Maryland holds fiduciaries to some of the highest standards in the law. A fiduciary must act with loyalty, putting the interests of beneficiaries ahead of their own. They must manage assets prudently, with reasonable care and skill. They must treat beneficiaries impartially, keep accurate records, and provide accountings when required. Under the Maryland Trust Act, trustees must also keep qualified beneficiaries reasonably informed about the trust and how it is being run. A fiduciary who falls short of these obligations can be held personally responsible and it can get costly in court if the right legal paperwork or lawyer representative isn't involved.
Common Fiduciary Disputes
Real Estate attorney Kensington MD It's important to know that Fiduciary litigation in Maryland takes many forms. We often see personal representatives who let an estate sit untouched for months or years without explanation. We see trustees who mix trust funds with their personal accounts or make investments that benefit themselves rather than the beneficiaries. We see agents under a power of attorney who move money from an aging parent into their own accounts, and guardians who fail to file required reports or account for how funds were spent and this scenario happens often.
Disputes also arise over the documents themselves. A will or trust may be challenged on grounds such as undue influence, lack of mental capacity, fraud, or improper signing. These cases often involve close family relationships, which makes them emotionally difficult as well as legally complex. Having a good legal representative in your corner is a must in these situations.
Where These Cases Are Heard
What happens legally you ask? Maryland's court structure for these matters is unusual.
The Orphans' Court in each county and in Baltimore City oversees the administration of probate estates. In Harford and Montgomery Counties, circuit court judges serve as the Orphans' Court. Contested questions of fact in estate matters may be sent to the circuit court for trial, and trust disputes are generally heard in the circuit court. Knowing which court to use, and when, can shape the outcome of a case. Again, a good estate attorney will know.
Remedies Available
What to know: Maryland courts have broad power to correct fiduciary misconduct. A court may order a full accounting, remove a fiduciary and appoint a replacement, require the fiduciary to repay losses to the estate or trust, undo improper transactions, and reduce or deny the fiduciary's commissions. In some cases, the court may also award attorney's fees which is good to know.
Timing Matters
Deadlines in fiduciary cases can be short and strict. For example, a petition to caveat a will in Maryland generally must be filed within six months after the first appointment of a personal representative under that will. Claims against trustees can also be cut off if they are not pursued promptly after the beneficiary receives adequate disclosure. If you suspect something is wrong, speak with an attorney as soon as possible.
If You Are the Fiduciary
Serving as a fiduciary is often a thankless job, and accusations of wrongdoing can be deeply upsetting. Many claims come from misunderstandings or family tension rather than real misconduct. We also represent fiduciaries who need guidance on their duties or a strong defense against unfounded claims.
Speak With a Maryland Fiduciary Litigation Attorney
Whether you are a beneficiary worried about how an estate or trust is being handled, or a fiduciary facing a challenge, The Law Office of Brian Gormley LLC is here to help. Schedule a consultation and learn how they can protect your interests and your family's legacy. They've been working in this area of law for 25 years and are highly respected.
This blog is for general informational purposes only and does not constitute legal advice. Reading it does not create an attorney client relationship.
