Trust Fund Mismanagement

Trust fund mismanagement occurs when the assets or resources held in a trust are not managed properly. This can happen through poor investment decisions, lack of oversight, or misuse of funds, leading to decreased value or loss of the intended benefits for beneficiaries. Essentially, it’s when those responsible for handling the trust do not act in the best interests of the trust’s purpose, which can result in financial harm and legal issues. Proper management, transparency, and adherence to legal standards are critical to safeguarding trust assets.