A money judgment which the court can impose on a fiduciary if their improper acts cause losses to an estate will be paid from its assets.
An additional price or surcharge. Surcharges are additional charges that are imposed on something that is already due, like a tax on a tax. The penalty that a court can impose on a fiduciary for breaching a duty is also included in the definition.
Equitable Surcharging is a term used in the law to demonstrate to an arbitrator or judge that a certain item should be included in an account that is believed to be resolved or completed.
Importance Of Surcharge Action For Fiduciaries (Personal Representatives & Executors)
It’s important for the personal representative of an estate or trust must act solely for the benefit of beneficiaries. They owe a duty to settle and distribute property in accord with terms set out by will, efficiently if possible but also quickly—and consistent with their best interests as well! If you’re worried about being liable after mismanaging such funds then there is some good news: A “surcharge” action can be brought against them which means that any damages awarded will come directly from what they receive instead – not necessarily all at once like court fees do when someone performs errantly tasks without dunning him/her enough first.
Breach of fiduciary responsibility
A breach of fiduciary duty occurs when a principal fails to act responsibly in the best interests of a client. There are many consequences that can result from a breach of fiduciary duty. These range anywhere between reputation damage and loss or license, as well monetary penalties for corporations who have committed this crime in the past- which is why it’s important to always put your clients’ interests first. If you are a beneficiary of an inheritance than it’s important to be vigilant and make sure there is no breach of fiduciary responsibility in your probate case.
Purpose of surchage actions
Surcharge actions are a way for beneficiaries to get their losses from breaches of fiduciary duty restored. The personal representative must post a bond with the court, and if they lose then all recovered funds will go back into an estate or trust fund as opposed to being awarded directly which could potentially benefit someone else besides those who were actually entitled by law – like creditors!« Back to Glossary Index