Trusts are a powerful estate planning tool to preserve wealth, protect assets, and fulfill a loved one’s wishes for their legacy throughout Orlando and Central Florida. Trusts depend on a key relationship: the trustee’s duty to beneficiaries. When trustees fail to act with honesty, loyalty, or care, disputes often land in the Florida probate courts.

This process, known as trust litigation, involves beneficiaries or co-trustees challenging the actions or inactions of a trustee. Because trusts often hold real estate, business interests, and retirement accounts, the financial stakes can be significant, and emotions can run high.

Trustee Duties Under Florida Law

Florida’s Trust Code, found in Chapter 736 of the Florida Statutes, sets out clear obligations for trustees. These duties include:

• Duty of loyalty – Acting in the best interests of beneficiaries, not for personal gain (Fla. Stat. §736.0802).
• Duty of impartiality – Treating all beneficiaries fairly when there are multiple interests (Fla. Stat. §736.0803).
• Duty to inform and account – Keeping beneficiaries reasonably informed about trust administration and providing regular accountings (Fla. Stat. §736.0813).
• Duty of prudent administration – Managing trust assets with reasonable care, skill, and caution (Fla. Stat. §736.0804).

When trustees fail in these duties, beneficiaries have the right to bring claims in probate court.

What Constitutes a Breach of Duty?

A breach occurs when a trustee’s actions, or failure to act, violate these statutory duties. Common breaches in Florida include:

• Using trust property for personal benefit
• Favoring one beneficiary over another without legal justification
• Failing to provide timely or accurate accounting
• Making reckless or self-interested investment decisions
• Delaying distributions for improper reasons

For example, in Orlando, disputes often arise when a trustee controls rental property and fails to share profits fairly among siblings or step-relatives. Because Central Florida real estate values are high, even minor missteps can lead to substantial financial harm.

The Litigation Process in Florida

When beneficiaries believe a trustee has breached their duty, the process usually follows these steps:

• Filing a petition – A beneficiary or co-trustee files a petition in probate court, often in the county where the trust is administered. In Orlando,these cases are addressed in the Orange County Probate Division.
• Notification – The trustee and all interested parties must receive formal notice.
• Discovery – Both sides exchange financial records, trust accountings, and other documents.
• Mediation or settlement – Florida courts often encourage mediation to resolve disputes outside of trial.
• Hearing or trial – If settlement fails, the case proceeds to a hearing where a judge decides whether a breach occurred and what remedy is appropriate.

This process can be time-consuming, but Florida law provides mechanisms to hold trustees accountable while preserving beneficiaries’ rights.

Remedies for Breach of Duty

Under Florida Statute §736.1001, courts may impose several remedies if a trustee is found to have breached their duty. These remedies can include:

• Compelling the trustee to perform required duties
• Enjoining the trustee from committing further breaches
• Ordering the trustee to pay damages or restore property to the trust
• Removing the trustee and appointing a successor

In some Orlando cases, trustees are required to repay lost income resulting from poor investment decisions or return property wrongfully taken for personal use.

Common Trust Litigation Scenarios in Blended Families

Blended families are frequent sources of trust litigation in Florida. Typical disputes include:

• Stepchildren can believe the surviving spouse acting as trustee has favored their own children
• Beneficiaries may suspect that a new spouse influenced a trust amendment
• Disagreements over homestead property included in a trust

For example, under Florida’s homestead protections (Article X, Section 4 of the Florida Constitution), a family home may not be freely transferred through a trust when certain family members are still living. Misunderstanding these rules can spark intense disputes.

The Role of Fiduciary Accountings

Accounting is often a central factor in trust litigation. Trustees must provide annual accounting that details income, expenses, distributions, and the value of trust property. When the accounting is missing or appears inaccurate, beneficiaries may petition the court for enforcement.

In Orlando, where trusts frequently include income-generating assets such as rental properties near major roads like Colonial Drive or I-4, disputes often focus on whether income was reported correctly and distributed.

Removal of Trustees

Florida courts have authority under Fla. Stat. §736.0706 to remove a trustee if continued service is detrimental to the trust or if a serious breach has occurred. Grounds for removal may include:

• Persistent failure to account to beneficiaries
• Conflicts of interest
• Mismanagement of assets
• Hostility between the trustee and beneficiaries that threatens proper administration

Removal is considered a serious step, but courts recognize that maintaining the integrity of the trust is more important than preserving the trustee’s role.

Preventing Trust Litigation Through Planning

While not all disputes can be avoided, proactive measures reduce the risk. Families in Orlando often use:

• Clear trust language – Well-drafted documents leave little room for interpretation
• Independent trustees – Appointing a neutral third party avoids family conflict
• Regular communication – Trustees who provide timely updates build trust and transparency

When these safeguards fail or conflicts escalate, litigation becomes necessary to resolve disputes and protect beneficiaries.

Why These Cases Require Careful Handling

Trust litigation is different from other civil disputes. It involves not only financial issues but also deep family dynamics. For many beneficiaries, the dispute is about fairness and legacy as much as it is about money. Trustees facing allegations are deserving of fair treatment and the chance to prove they acted in good faith.

Orlando probate judges are experienced in handling these matters, but the court system expects parties to present detailed evidence, financial records, and legal arguments grounded in Florida law. Without skilled representation, both trustees and beneficiaries risk losing more than money; they risk permanently damaging family relationships.

Take the Next Step with Bloodworth Law, PLLC

Trust litigation can be one of the most complex and emotionally charged areas of probate law. Families in Orlando and Central Florida deserve clear guidance when trustees breach their duty.

At Bloodworth Law, PLLC, we bring both a firm understanding of Florida’s trust statutes and a compassionate approach to navigating family disputes. Whether you are a trustee accused of wrongdoing or a beneficiary seeking accountability, we can help you understand your rights and the legal options available.

Call us today at 407-449-8958 to schedule a consultation.