Duty of Loyalty vs Duty of Care: How It Affects Your Loved One’s Rights
When someone takes on the responsibility of managing the affairs of an elderly or vulnerable adult—whether as a legal guardian, trustee, or agent under a power of attorney—they are bound by fiduciary duties. Two of the most critical fiduciary duties are the duty of loyalty and the duty of care. Understanding the duty of loyalty vs duty of care is essential for families looking to protect their loved ones from exploitation, neglect, or abuse.
This article explores what these duties mean, how they differ, and what legal remedies exist when they are violated—especially in the context of elder care.
What Is the Duty of Loyalty?
The duty of loyalty requires fiduciaries to act in the best interests of the person they are responsible for—without allowing personal interests or outside influences to interfere. This duty means putting the elder’s well-being above all else.
Examples in Elder Care:
A power of attorney agent must not use the elder’s money for personal gain.
A trustee managing a special needs trust must avoid self-dealing or favoritism.
Common Breaches:
Co-mingling personal funds with the elder’s assets.
Selling an elder’s property below market value to a family member.
Using influence to redirect inheritance or make unauthorized gifts.
What Is the Duty of Care?
The duty of care requires fiduciaries to act with diligence, competence, and prudence when handling the affairs of the elder. It’s not just about good intentions—it’s about making informed, responsible decisions.
Examples in Elder Care:
A guardian must ensure the elder’s basic needs—medical, emotional, and financial—are met.
A trustee should properly invest and safeguard trust assets in a way that preserves value.
Common Breaches:
Failing to provide adequate medical care or living conditions.
Ignoring warning signs of elder abuse by caregivers.
Neglecting to maintain accurate financial records or monitor bank activity.
Duty of Care vs Duty of Loyalty: What’s the Difference?
While both duties serve to protect vulnerable individuals, their focus differs:
| Aspect | Duty of Loyalty | Duty of Care |
|---|---|---|
| Primary Focus | Avoiding conflicts of interest | Acting with competence and diligence |
| Type of Violation | Self-dealing, undue influence | Negligence, lack of oversight |
| Legal Standard | Absolute loyalty to the elder’s interests | Reasonable care under the circumstances |
| Common in Cases Involving | Exploitation | Neglect or mismanagement |
Understanding the duty of care vs duty of loyalty helps families identify not only bad intentions, but also negligent behavior that may still cause significant harm.
Real-World Examples of Breaches in Elder Care
Both cases below show how mismanagement—intentional or not—can devastate a vulnerable adult’s well-being and finances.
Case 1: Breach of Duty of Loyalty
A nephew appointed under power of attorney sells his aunt’s home and deposits the proceeds into his own account. Although he claimed it was to “help her manage finances,” this self-dealing is a direct breach of loyalty.
Case 2: Breach of Duty of Care
An overburdened guardian fails to renew the elder’s long-term care insurance, resulting in out-of-pocket medical expenses. While there was no malicious intent, the lack of basic financial oversight violated the duty of care.
Legal Implications and Red Flags to Watch For
Violations of these fiduciary duties can result in serious legal consequences, including:
Civil lawsuits for financial restitution
Court removal of the fiduciary
Criminal charges in cases of abuse or fraud
Red Flags That May Indicate a Breach:
Sudden changes to wills, trusts, or financial accounts
Isolation of your loved one from family or advisors
Missing financial statements or unexplained expenses
Neglected medical, hygiene, or housing needs
If you suspect someone managing your loved one’s affairs is failing to uphold their legal duties, it’s critical to act quickly.
How Families Can Protect Their Loved Ones
Request transparency: Ask for regular financial and health updates from fiduciaries.
Review documents: Check powers of attorney and trusts for potential abuse loopholes.
Hire legal counsel: An elder abuse lawyer can investigate misconduct and take swift legal action.
Report abuse: Contact Adult Protective Services or law enforcement if fraud or neglect is suspected.
We’re Here to Help: Consult Peck Law Corporation
At Peck Law Corporation, we specialize in protecting the rights of elderly and vulnerable adults across Southern California. Whether you’re concerned about a guardian mismanaging care or a family member abusing a power of attorney, our team of experienced elder abuse and nursing home abuse lawyers is here to help.
We understand how deeply these issues affect families—and we fight to hold bad actors accountable.
Know the Signs. Defend What Matters.
Understanding the duty of loyalty vs duty of care is a critical first step in safeguarding your loved one’s rights. While both fiduciary duties aim to ensure responsible, ethical management, breaches—whether through self-interest or negligence—can have devastating consequences.
If you suspect a violation of these duties or have questions about elder abuse, don't wait.
Contact Peck Law Corporation today for a confidential consultation with a skilled elder abuse or nursing home abuse lawyer in Southern California.
FAQs
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The duty of loyalty requires fiduciaries to act in the sole best interest of the person they represent, avoiding any conflicts of interest or self-dealing. The duty of care involves making informed, prudent decisions to manage the person’s affairs responsibly and with competence.
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Guardians, trustees, agents under power of attorney, and other fiduciaries are legally required to uphold both the duty of loyalty and the duty of care. These responsibilities apply when managing the personal, medical, or financial matters of elderly or vulnerable adults.
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Yes. A fiduciary may act with good intentions but still fail to meet the standard of care—for example, by not keeping proper financial records. Alternatively, they might provide adequate care but use the elder’s assets for personal benefit, violating the duty of loyalty.
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Violating fiduciary duties can result in civil liability, restitution, removal from their role, and even criminal charges in severe cases. Courts take these breaches seriously, especially when they lead to elder abuse or exploitation.
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Document any suspicious activity and reach out to a law firm experienced in elder law, like Peck Law Corporation. Prompt legal intervention can help stop the harm and protect your loved one’s rights and assets.