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Fiduciary Responsibilities When Auctioning PropertyFiduciary Responsibilities When Auctioning Property

Be careful what you bid for.

Stacie L. Chau, Attorney

October 22, 2021

12 Min Read
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An increasingly popular option for fiduciaries to dispose of properties that are particularly difficult to maintain or sell is via an auction. Although auctions can yield successful outcomes, they can also be a pitfall for fiduciaries and a basis for claims of breach of fiduciary duties if the auction isn’t handled properly, leading to less than desirable results.   

Why Auction?   

The National Association of Realtors recommends adhering to the “two-thirds” rule: out of market, seller and property, if two of the three are suited for auction, then auctioning the property will likely achieve good results.1 A good market for auction is typically: (1) either constantly changing or too dull, (2) currently lacking the specific property type (fo...

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About the Author

Stacie L. Chau

Attorney, Holland & Knight

Stacie L. Chau is an attorney in Holland & Knight’s Los Angeles office and a member of the firm's Private Wealth Services Dispute Resolution Team. Ms. Chau'’ practice focuses on complex trusts and estates litigation and administration. 

Ms. Chau has experience in representing professional fiduciaries in complex trust and estate administration and litigation. In working with professional fiduciaries in the administration of complex trust and estate matters, Ms. Chau is also experienced with spotting and identifying tax issues related to federal estate tax returns and gift tax returns. Having dealt with numerous cases where family members are unaware of and reluctant to comply with gift tax reporting obligations, Ms. Chau’s skills and knowledge can assist professional fiduciaries to investigate gift reporting issues and ensure that a professional fiduciary representing the decedent complies with all tax reporting obligations. With her extensive experience handling complex trusts and estates administration, Ms. Chau is also familiar with the complex California statutes regulating the creditor’s claims process. She regularly assists professional fiduciaries and debtors in pursuing or defending creditor’s claims relating to the decedent’s estate.

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