Trusts: Damages without a Breach

Because of the high fiduciary standards applied to trustees, a beneficiary may still nevertheless hold a trustee liable for damages even when the trustee has not committed a breach of trust.

Specifically, a trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration, even absent a breach. Section 456.10-1003., RSMo. However, absent a breach, a trustee is not liable to a beneficiary for a loss or depreciation in trust property or for not having made a profit.

The reasoning is that a trustee should not be allowed to use a trust as a means for personal profit other than for routine compensation earned. For instance, it would be improper for a trustee to receive a commission or bonus from a third-party for actions relating to the trust’s administration.

Related Articles

Determining a Grantor’s Intent in Trusts

November 4, 2023

When interpreting a trust, the Settlor’s “intent is controlling and such intention must be ascertained primarily from the trust instrument as a whole.” Berezo v. Berezo, 628 S.W.3d 737, 743-44 (Mo. App. E.D. 2021). Because language and circumstances vary, the Court must examine “the specific language as well as the surrounding circumstances.” Matter of TR…

Read More

Successor in Interest, Powers of Attorney

September 21, 2023

The term “successor in interest,” as of this writing, has not been defined in the context of power of attorney litigation. When someone mismanages his/her authority under a power of attorney, the principal, or his/her successors in interest, can file suit. The relevant statute defines “successor in interest”: “For purposes of this section, the principal’s…

Read More

Non-Monetary Claims Against the Estate

August 10, 2023

When an individual dies, there is generally no more than one year from the date of death to make a “claim” against his/her estate. The burden to commence a claim is the responsibility of the claimant. Mo. Highway & Transp. Com’n v. Myers, 785 S.W.2d 70, 73 (Mo. 1990). The general purpose of this deadline is…

Read More

Will Contests, Self-Proving Wills

March 30, 2023

Will contests are unique for several reasons. Perhaps most significantly, the burden is on the proponent of the document to prove the will was executed and that the testator possessed the requisite capacity. Many times the “proponent” of the will is the defendant in the lawsuit. So, the will contest instructions contemplate the defendant presenting…

Read More
Scroll to Top