Arizona’s unique mix of retirement communities, family-owned businesses, and second homes often brings fiduciary issues to the forefront. Maybe a conservator in Maricopa County is accused of misusing funds, or a dispute arises over how a trustee handles property in Scottsdale.
These situations can often lead to legal battles and fiduciary litigation, where the courts step in to protect vulnerable adults, settle estate conflicts, and hold fiduciaries accountable. Understanding how this process works can help you know what to expect and how to protect your family’s interests.
What Is Fiduciary Litigation?
Fiduciary litigation refers to legal disputes involving someone with the duty to act in another person’s best interests. Courts may resolve the conflict when a fiduciary fails to carry out their duties or when they have acted unfairly or illegally.
Fiduciaries can include trustees, personal representatives of estates, guardians, or conservators. Arizona law holds fiduciaries to a very high standard. They must act with loyalty, honesty, and care when managing another person’s finances or well-being. If they don’t, beneficiaries or other interested parties can sue to hold them accountable.
Common Examples of Fiduciary Conflicts
Disputes involving fiduciaries can take many forms. Some of the most common issues include:
- Contested guardianships—a disagreement over whether someone should serve as guardian for an elderly or incapacitated family member;
- Conservatorship disputes—conflicts over how a fiduciary manages an adult’s money, property, or medical needs;
- Trustee misconduct—claims that a trustee misused funds, favored particular beneficiaries, or failed to provide information;
- Estate mismanagement—allegations that a personal representative handled assets irresponsibly or ignored their duties; and
- Financial exploitation—cases where a fiduciary takes advantage of a vulnerable adult for personal gain.
Each situation carries financial stakes and involves dignity, relationships, and trust. Resolving these disputes often requires careful legal and emotional guidance.
How Fiduciary Litigation Works in Arizona
While every case is unique, most fiduciary disputes follow a similar path:
- Identifying the problem—a beneficiary, family member, or fiduciary notices issues such as missing money, mismanagement, or abuse;
- Filing a petition—begin a case in probate court to remove the fiduciary, recover assets, or clarify duties;
- Notifying all parties—everyone with an interest in the estate, trust, or guardianship gets notice of the case;
- Gathering evidence—collect medical records, financial documents, and witness testimony to support the claims;
- Exploring resolution options—use mediation or other alternative dispute resolution (ADR) methods to reach an agreement before trial, saving time, money, and family relationships; and
- Court hearings—if no resolution is reached, a judge reviews the evidence, hears arguments, and decides whether the fiduciary appropriately acted.
Professional guidance is often essential to avoid costly mistakes because each step carries deadlines and legal requirements.
Why Is Fiduciary Litigation Complicated?
At first glance, proving a fiduciary acted improperly may seem straightforward. In reality, these cases are often complex. Arizona probate law imposes strict deadlines, requires detailed financial accountings, and demands evidence that can withstand scrutiny in court. Family members may have different perspectives or long-standing conflicts that make resolution difficult. Working with an experienced attorney can make a significant difference.
What Is a Fiduciary Lawyer?
A fiduciary lawyer represents individuals who serve in roles of legal trust, like trustees, personal representatives, or guardians, or the family members and beneficiaries affected by their actions. The lawyer’s job is to ensure fiduciaries follow Arizona law and hold them accountable if they don’t.
A fiduciary lawyer’s work often includes:
- Advising fiduciaries—helping trustees, guardians, or personal representatives understand their duties and complete required reports, accountings, and petitions;
- Defending fiduciaries—representing those accused of mismanaging money, neglecting responsibilities, or acting unfairly;
- Challenging misconduct—taking action when a fiduciary misuses funds, hides information, or exploits a vulnerable adult;
- Recovering assets—pursuing the return of mishandled property or money to the estate or trust; and
- Resolving family disputes—reducing conflict among siblings or beneficiaries so that relationships are not permanently damaged.
In short, a fiduciary lawyer may help protect the person in the fiduciary role or the family members relying on them. They can bring clarity and order when trust and responsibilities are in question.
Choose Theut Scaringelli & Kupiszewski P.L.C. to Resolve Fiduciary Disputes
Act quickly and get clear legal guidance if you are a fiduciary accused of wrongdoing or a family member concerned about mismanagement. The attorneys at Theut Scaringelli & Kupiszewski can help you understand your options, protect your loved one’s legacy, and work toward resolution with compassion and skill.
We understand that fiduciary disputes are deeply personal matters that affect families, finances, and futures. Our attorneys have devoted their careers to probate, trust, estate, and guardianship law. With decades of combined experience, including service on the Maricopa County probate bench, we understand the legal details and the human impact of these cases.
We appear daily before Arizona probate judges and have handled cases ranging from contested guardianships to multi-million-dollar trust disputes. Our reputation in the courts and solution-focused approach give clients confidence that we will handle their case with care and skill.
Contact us today to schedule a consultation and take the first step toward peace of mind.
