Giraldin v. Giraldin

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This case involved a revocable trust. After the settlor died, the beneficiaries sued the trustee for breach of the fiduciary duty committed while the settlor was still alive and the trust was still revocable rather than irrevocable. The trial court ruled in favor of the beneficiaries, finding that the trustee had violated his duty in various respects. The court of appeal reversed, holding that the beneficiaries did not have standing to maintain claims for breach of fiduciary duty against the trustee, as the trustee's duties were owed solely to the settlor during the settlor's lifetime and not to the trust beneficiaries. The Supreme Court reversed, holding that because a trustee's breach of the fiduciary duty owed to the settlor can substantially harm the beneficiaries by reducing the trust's value against the settlor's wishes, the beneficiaries do have standing to sue for a breach of that duty after the settlor has died. View "Giraldin v. Giraldin" on Justia Law