Dishonest assistance refers to a legal concept in trust law where a third party knowingly aids another person in breaching a trust or fiduciary duty. This assistance must be done with dishonesty, meaning the assistant is aware that their actions contribute to the wrongdoing. When someone is found to have provided dishonest assistance, they can be held liable for the consequences of that breach.
This term is primarily used in civil law, particularly in cases involving trusts and fiduciary relationships. Dishonest assistance can arise in various legal scenarios, such as when a person helps a trustee mismanage funds or when they facilitate the unauthorized use of trust property. Users may find relevant legal forms and templates on platforms like US Legal Forms to assist in navigating these situations.
Here are a couple of examples of abatement:
Example 1: A financial advisor helps a client withdraw funds from a trust account without proper authorization, knowing the action violates the trust agreement. In this case, the advisor may be liable for dishonest assistance.
Example 2: A business partner knowingly assists another partner in diverting company funds for personal use, understanding this action breaches their fiduciary duty to the company. (hypothetical example)
| Term | Definition | Key Differences |
|---|---|---|
| Knowing Assistance | Similar to dishonest assistance, but may not require proof of dishonesty. | Dishonest assistance requires a dishonest intent, while knowing assistance focuses on awareness of the breach. |
| Fraudulent Conveyance | Transferring assets to avoid creditors. | Dishonest assistance involves aiding a breach of trust, while fraudulent conveyance is about asset transfer to evade obligations. |
If you believe you are involved in a situation of dishonest assistance, it is advisable to seek legal counsel to understand your rights and obligations. You can also explore US Legal Forms for templates that may help you address the issue. If the situation is complex, professional legal help is highly recommended.
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| Attribute | Details |
|---|---|
| Typical Fees | Varies based on legal representation. |
| Jurisdiction | Applicable in civil law contexts involving trusts. |
| Possible Penalties | Liability for losses incurred due to the breach. |
Dishonest assistance is when a third party knowingly helps someone breach a trust or fiduciary duty, making them liable for the breach.