Looking for guidance on fiduciary responsibilities and legal action in California? Look no further than Abir Cohen Treyzon Salo, LLP. Our team of experienced Los Angeles business attorneys can provide you with the support and guidance you need.
In California, trustees and executors are held accountable for their actions, and there are strict laws in place to regulate this. All fiduciaries, including Certified Public Accountants (CPAs), are governed by state laws and must adhere to the highest duty of care. Failure to do so could result in allegations by beneficiaries or creditors, potentially leading to legal action.
Common claims against fiduciaries include misappropriation of assets, failure to pay liabilities or debts, inadequate or fraudulent accounting, irresponsible investing, and using trust funds for personal gain. Even if a fiduciary’s actions are legal, they may still face claims against them. This is why it is essential to work with a trusted and experienced attorney who can help protect your rights and interests.
If a power of abuse is suspected, a beneficiary or creditor may initiate an accounting to determine if their trustee acted according to the law. An accountant can provide proper assurances to the beneficiary or show that the trustee’s actions caused harm and losses. After filing a trust accounting in court, the court may order either party to undertake actions to make things right, potentially leading to trial.
California attorneys that assume fiduciary duties should be aware of the Interest on Lawyers’ Trust Accounts (IOLTA) program, which applies to lawyers that manage certain types of client funds. In California, CPAs are also subject to specific accounting laws that regulate how they serve clients. Not following these laws could lead to a lawsuit.
If a fiduciary is found liable for causing harm, they may be required to pay damages, restitution, taxes and penalties, interest, equitable relief, and attorney’s fees to a plaintiff. Fiduciaries should protect themselves from future litigation by contacting their insurance company to see what coverage is available and by forging trusting relationships with their clients.
At Abir Cohen Treyzon Salo, LLP, we offer free case evaluations and will fight to protect your rights. Located in San Diego and Los Angeles, California, we serve clients throughout the surrounding areas. Contact us today at 833-ACTS-LAW or through our online form to learn more about how we can assist you with all types of business matters.