Legal Question in Wills and Trusts in Georgia

Banks responabilty in trust fund principal loss

I am an income beneficiary of 3 trust funds that were left to myself and 2 other family members all are income beneficiaries, the trusts are with a large bank in FL the bank was left executor of the trust as executor of the will it was a roll over will. Here is the problem I have been a beneficiary for a little over 2 years and in the last 9 months or so the bank has lost over 100,000 of the principal amount of the trust to the stock market(none of the beneficiary have any choice in how the bank invests the money as the bank is the executor or so this is what we were told by the bank) We have told the bank over and over again since the beginning of the year that the stock market was volatile and we wanted the money secure but still making money. Of course they ignored us and continued to invest OUR money as they wished and now it has lost a HUGE amount of principal to date which is outrageous. Do we have any legal rights against the bank for not protecting our money as they could have changed they way it was invested but they continued as if the market was fine. I was talking with someone who is a financial adviser and I was told that the bank holds a fiduciary responsibility to us the beneficiaries. Is this true do we have any l


Asked on 12/07/08, 3:53 am

1 Answer from Attorneys
David Blazek The Law Office of David K. Blazek

Re: Banks responabilty in trust fund principal loss

The bank, as trustee, does have a fiduciary responsibility to you. However, that does not necessarily mean that the loss was a breach of that responsibility. Other critical information in this situation would have to come from the trust instrument itself - and any restrictions the creator of the trust placed on the management of the trust and its investments.

You need to contact an attorney and have a detailed discussion of the precise details of the trust and the bank's investment management to determine if there was a violation of the duty owed to beneficiaries. Feel free to contact me to discuss the details.

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Answered on 12/08/08, 8:36 pm


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