What Are The Duties Of A Trustee In Florida?

If you are a trustee in Florida, then you need to do your homework, especially if you lack experience in managing trusts, which you probably do. When managing a trust, many potential pitfalls can arise and result in the need for probate litigation. To avoid this, competent legal representation is crucial.

Many Florida residents choose to establish a trust as part of their estate plan. Although most people associate “trust funds” with the wealthy, trusts can protect the assets owned by those in the middle class too. Trusts allow individuals to deposit money, stock, real estate, and other valuable assets into one location. Individuals may also determine who their beneficiaries will be and outline various instructions for the distribution of your assets.

The Fiduciary Duties of a Trustee in Florida

Florida law imposes specific fiduciary duties upon the Trustee. Some of these duties are:

• Good Faith and Prudent Administration

A trustee in Florida cannot do whatever he or she wants with a trust’s assets. Trustees must act in accordance with the terms of the trust. In line with F.S. 736.0801, a trustee must act in good faith, in accordance with the trust’s terms and purposes, and manage the trust exercising caution, reasonable care, and skill, as a prudent person would.

• Protection, Control, and Collection

F.S. 736.0809 requires trustees to take reasonable steps to protect and control the trust property. In addition, under F.S. 736.082, trustees must take reasonable steps to compel former trustees or other individuals to deliver trust property and to redress breaches of trust committed by former trustees, if any. If you are a trustee, the lawyers at Jurado & Farshchian, P.L. can help you hold a former trustee accountable for failing to meet this obligation.

• Identification, Accounting, and Recordkeeping

As a trustee, you must maintain a clear, distinct and accurate record of the trust administration while ensuring your property always remains separate from that of the trust. Under F.S. 736.0813, trustees must also keep all qualified beneficiaries reasonably informed of the trust administration. Meeting this requirement is not as easy as it may sound, as it involves tight deadlines. As a trustee, you will have 60 days to notify the beneficiaries of the creation of the irrevocable trust, give notice of the acceptance of the trust, and provide the beneficiaries with a complete copy of the trust. Per F.S. 736.08135, the trust accounting must be reasonably understandable and show all gains, losses, and compensation paid to the trustee. Proper accounting and recordkeeping is the main reason why it is crucial to have assistance from an experienced attorney.

Are You a Trustee in Florida? Jurado & Farshchian, P.L. Can Help You

Most trustees will often find themselves having to navigate the Florida probate system, which may be overwhelming for the layperson, especially in cases where the individual who created the trust did not transfer the assets properly into it.

Trustees can be removed due to dishonest or illegal behavior. The thing is – this “illegal behavior” is often the result of trustees simply not knowing how to do their job and, therefore, making legal mistakes. This is becoming even more frequent as the popularity of trusts increases.

If you are a trustee, we can help you by guiding you through the entire process.

Call Jurado & Farshchian, P.L. at (305) 921-0440 or send us an email to [email protected] to schedule an initial consultation with one of your lawyers