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Florida law requires trustees to follow regulations and behave with the strictest sense of duty towards their trust and its beneficiaries. If you suspect a trustee is failing in their duties and responsibilities, you may have powerful legal options, including a lawsuit.
\However, it’s essential to work quickly—you may need to file your claim before a six-month deadline. A Florida trust litigation attorney can work with you to make sure you get the help you need.
What Trustees Must Do
There are two types of trust—those that the original settlor can revoke and those they cannot. When a trust is revocable, the law holds that a trustee’s duties are owed to the settlor instead. See Fla. Stat. § 736.0603. However, trustees of irrevocable trusts owe a fiduciary duty to the beneficiaries.
This means they must act in beneficiaries’ best interest, with care, loyalty, prudence, and honesty. Their duties include:
- Treating trust beneficiaries impartially
- Not taking personal advantage of “opportunit[ies] properly belonging to the trust”
- Avoiding deals with their own family members, employees, or other affiliated parties (unless properly authorized)
- Taking “reasonable care, skill, and caution” with the trust property, which includes maintaining the trust’s physical assets and making careful investments for trust funds
See §§ 736.0802–12. Florida trustees also have specific administrative duties, such as:
- Keeping clear, distinct, and accurate records
- Holding trust property separate from others
- Providing qualified beneficiaries with regular accountings and information on trust property as provided by law or the terms of the trust
- Disclosure about certain potential conflicts of interest
See §§ 736.0802, 0810, 0813.
The terms of a trust usually also prescribe specific duties that the trustee must follow. What should a beneficiary do if they are concerned that a trustee is not acting properly—or when they simply aren’t getting the information they need to decide?
Enforcing the Rights of Beneficiaries
Under Florida law, a beneficiary’s rights and claims may depend on the type of trust, the terms of the trust instrument, and the type of beneficiary standing they have. Speak with a Florida trust attorney as soon as possible to determine what kind of claim you may need to file—some of them have a short time limitation.
When a Trustee Does Not Provide Accounts or Information
Trustees for irrevocable trusts must keep qualified beneficiaries informed by sending them:
- Notice of the existence of an irrevocable trust, together with information about the settlor and the beneficiaries’ rights to information, within 60 days
- Notice of their own appointment to trusteeship, together with their full name and address, within 60 days
- A copy of the trust instrument, upon reasonable request
- A trust accounting, at least annually and/or when the trustee has changed—although some trusts may waive this for corporate trustees
- “Upon reasonable request … relevant information about the assets and liabilities of the trust and the particulars relating to administration”
See § 736.0813. Qualified beneficiaries are those who are potentially eligible for distributions from an irrevocable trust.
Trust accountings must comply with the minimum legal standards in the Florida Trust Code, which include showing “all cash and property transactions … during the accounting period, including compensation paid to the trustee and the trustee’s agents.” See § 736.08135.
If a trustee has not provided the required information, or their accounts are inadequate, consult an attorney as soon as possible. The trustee may comply after a formal request from a lawyer. But if not, the attorney may file a complaint to compel the trustee to provide an accounting—or more.
When a Trustee Commits a Breach of Trust
If a trustee has breached their fiduciary duty through neglect or malfeasance, a Florida trust attorney can file a complaint requesting the court to order the trustee to remedy the harm they have done. The court may compel the trustee to:
- Make an accounting
- Perform their duties under the law or the terms of the trust
- Restore the funds or lost property resulting from a breach of trust
The court also has broad authority to:
- Declare a trustee’s act void
- Suspend or remove a trustee
- Reduce or deny a trustee’s compensation
- Appoint a special fiduciary to take charge of the trust
- Enjoin (that is, stop) a trustee from committing a breach of trust
- Restore the balance when one beneficiary has been unjustly favored
- Create liens or take other actions to recover trust property lost through a trustee’s act
- “Order any other appropriate relief” for a breach of trust
See § 736.1001. However, the beneficiary has no right to sue if the statute of limitations has run.
When Quick Action Is Important: Statutes of Limitations
Beneficiaries face a particularly short time limit for complaints against a trustee if the breach of trust involves a matter that was “adequately disclosed in a trust disclosure document.” Trust disclosure documents include accountings or “any other written reports of the trustee or trust director.” In that case, the beneficiary must begin a court proceeding on the claim within just six months of receipt. See § 736.1008. A notice of the statute of limitations from the trustee may also trigger the six-month period.
Otherwise, the statute of limitations will vary by the nature of the complaint, but it is likely to be four years. See § 95.11. Since statutes of limitations are complicated and often at issue in court challenges, it is vital to work with an attorney to preserve your claim.
Trust Litigators in Orlando
Trust disputes can be complicated, painful, and expensive. Our experienced legal team can provide the representation you need to resolve these issues, assert your rights, and defend your claims. Contact us today at 407-449-8958 to schedule a complimentary first consultation.
