Alabama law imposes significant duties on personal representatives, trustees, guardians, and conservators. When those duties are breached, beneficiaries and other interested parties have remedies — including removal of the fiduciary, surcharge for losses caused by the breach, and disgorgement of improper fees or self-dealing profits.
Personal Representative Disputes
A personal representative has a duty to administer the estate promptly, account accurately, and distribute assets to rightful beneficiaries. Failure to do so — whether through self-dealing, misappropriation, delay, or mismanagement — can support a petition for removal under Ala. Code § 43-2-290 and related provisions, as well as a claim for surcharge.
Trustee Disputes
Trustees are held to the standards imposed by the Alabama Uniform Trust Code and the terms of the governing instrument. Common breach claims involve self-dealing transactions, failure to diversify, improper investment decisions, conflicts of interest, failure to account, and failure to make distributions.
Removal Actions
Removal of a fiduciary is available where the fiduciary has breached a material duty, has a conflict of interest that cannot be managed, is unfit to serve, or has failed to administer the estate or trust in good faith. Courts will also consider whether removal is necessary to protect the interests of beneficiaries.
Accounting and Surcharge
Interested parties are entitled to an accounting of fiduciary administration. Where the accounting reveals losses, improper disbursements, or unauthorized transactions, a surcharge action may be brought to recover those amounts from the fiduciary personally.
I represent beneficiaries seeking removal and surcharge, and I represent fiduciaries defending against those claims. Contact me to discuss the specifics of your matter.