Florida Trust Administration (FAQs)

1. What is trust administration?

Trust administration is the legal process by which a trustee manages and distributes the assets of a trust according to the terms of the trust document and Florida law. This may include:

• Notifying beneficiaries
• Inventorying and valuing trust assets
• Paying debts and taxes
• Distributing property to beneficiaries

2. What are a trustee’s duties under Florida law?

A trustee has a fiduciary duty to act in the best interest of the beneficiaries, interested persons, creditors, and the estate. These duties include:

• Acting loyally and prudently
• Keeping accurate records
• Providing annual accountings
• Acting impartially between beneficiaries
• Avoiding conflicts of interest

Failure to meet these obligations can result in personal liability.

3. How soon must a trustee act after the settlor dies?

Once a trust becomes irrevocable upon the settlor’s death, the trustee must act promptly. Florida law requires the trustee to:

• Notify qualified beneficiaries within 60 days
• Provide a copy of the trust upon request
• Begin managing and securing assets

4. Do all trusts have to go through probate?

No. One of the main benefits of a trust is to avoid probate. If properly funded, the trust’s assets can be administered and distributed without court involvement. However, some assets (like individually owned property not titled in the trust) may still require probate.

5. Can a beneficiary contest a trust?

Yes. A trust can be challenged in Florida under limited circumstances, including:

• Undue influence
• Lack of capacity
• Fraud or duress
• Improper execution

There are strict time limits, so beneficiaries considering contesting a trust should act quickly.

6. How long does trust administration take in Florida?

Trust administration can take a few months to over a year, depending on:

• The complexity of the trust
• Type and location of assets
• Tax issues
• Whether disputes arise

A straightforward trust with cooperative beneficiaries can often be resolved in under 6–9 months.

7. Do trustees get paid?

Yes. Florida law allows trustees to receive reasonable compensation. This may be set by the trust document or based on a statutory fee schedule. Trustees can also hire professionals (attorneys, accountants) and pay them from the trust.

8. What if the trustee is not doing their job?

Beneficiaries can take legal action if a trustee:

• Fails to communicate
• Mismanages assets
• Violates fiduciary duties

A Florida court may order the trustee to account, remove the trustee, or surcharge them for damages.

9. What documents and records must the trustee provide?

Trustees are generally required to provide:

• A complete copy of the trust upon request
• An annual trust accounting
• Inventory of assets
• Documentation of income, expenses, and distributions

10. Do I need an attorney for trust administration?

Legal counsel is highly recommended. Trust administration involves navigating Florida statutes, tax obligations, creditor claims, and potential disputes. An experienced Florida trust attorney can help ensure:

• Compliance with the Florida Trust Code
• Proper asset valuation and distribution
• Risk mitigation for trustees

If you’re a trustee, beneficiary, or family member navigating trust matters, contact us. Let the Law Offices of Evan M. Rosen serve you!