The trustee breached its fiduciary duty to the beneficiaries when it sold the only property that the trusts owned without proper notice to the beneficiaries.
The beneficiaries alleged that the trustee failed to comply with the ordinary standards of trust administration when it sold the property, and that the trustee breached its fiduciary duty in its management of the trusts by failing to inform the beneficiaries of the impending sale when the only asset of the trusts was the property. The beneficiaries also alleged that the trustee further breached its fiduciary duties by failing to ensure that the sale was for the highest possible price, and that the trustee had a duty to either obtain an independent appraisal of the property or to place the property on the open market prior to selling it.
Did the trustee breach its fiduciary duty to the beneficiaries in the sale of the trust property?
The trustee failed to adequately notify the beneficiaries of the impending sale and failed to attain the highest price by failing to adequately market the property. Further, the beneficiaries were entitled to recover all their attorney fees expended at both the trial and on appeal because the trustee breached its fiduciary duty.