Fiduciary Duty of Agency and Trustee

Case Summary

Esoteric Advisors was engaged by the client, the respondent, and their attorney to provide an opinion and conduct discovery related to specific facts, behaviors, and practices spanning several decades. The central issue of the case was the accusation of elder abuse and manipulation by the respondent and his actions concerning the assets of an elderly family member.  Careful analysis of the distinction between his use of his power of attorney and the timeline of his authority of his trusteeship was significant for the opinion for the court.

The petitioner had a multifaceted role:

• Part-time caretaker for an elderly aunt.
• General power of financial attorney.
• Successor trustee, eventually becoming the trustee.
• Beneficiary of a trust established by the elderly aunt.

The claimant, a nephew and trust beneficiary, alleged that the defendant had exerted undue influence to be added as a joint account owner on two accounts.

Additionally, the claimant asserted that the elderly family member had relinquished the trustee position years before her death due to incapacitation, effectively making the defendant the trustee prior to her passing.

Key Points:

1. Trustee’s Office:
   • Initially, we addressed the issue of the trustee’s office.
   • Our opinion held that, given no indication of incapacitation or intent to resign from       the elderly trustee, the objector’s assertions were speculative.
   • This reasoning was communicated to the objector and their attorney, leading to the       withdrawal of this plea.

1. Undue Influence:
   • Subsequently, the focus shifted to the claim of undue influence.
   • Specifically, we examined the two accounts jointly owned by the aunt and the petitioner over several decades.
   • The claimant contended that the respondent used undue influence to secure joint       ownership of these accounts, carving them out of the trust.

The court agreed with our expert analysis of acknowledged established industry practices: when financial institution personnel harbor concerns about an elder’s capacity, they pause the process and recommend seeking further professional consultation. In this case, the court noted that the elderly family member was capable of effective communication, leading to the execution of her requests by the bank officers. In the final judgment, the court ruled in favor of the client respondent, citing the "...persuasive testimony provided by Expert Mr. Kronvall."

Disposition: 

The court ruled in favor of the client respondent.