7 Defenses a Palm Beach Trustee Needs to Know When You’ve Been Sued
Are you a Palm Beach trustee who is in the middle of a Florida trust lawsuit ? Have, you, a Palm Beach Trustee, been sued by a trust beneficiary ? If so, here are 7 Things a Florida Trustee Needs to Know When You’ve Been Sued.
What Palm Beach Trustees Need to Know — PERSONAL Liability
- Trust litigation in Florida and across the country appears to be a growth industry.
- Florida trust beneficiaries “lawyer up” and want answers.
- Trust beneficiaries are more apt to question a trustee’s decisions, fees and investments.
- If a trustee does something wrong, called a breach of trust, that trustee may face personal liability.
- That means if a Palm Beach trustee has breached its fiduciary duties to the beneficiaries, the trustee has to dip into his or her own pocket to cover damages and probably even attorneys fees.
What can you do as a Palm Beach Trustee to protect yourself or limit your liability? Here are 7 things to consider if you are a Palm Beach trustee and have been sued. Are they defenses or a trustee’s get out of jail card? Ask your Trust Litigator.
- Does the trust document permit you to do something that a Trust Beneficiary is complaining of ? Reasonable reliance on a Florida Trust document is a defense. See Section 736.1009 of the Florida Trust Code. Cut & paste this web address to read this Florida Trust statute: http://www.leg.state.fl.us/STATUTES/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0736/Sections/0736.1009.html NOTE: The Florida Trust Code is DIFFERENT than the Florida Probate Code & the Florida Probate Rules. Trusts are trusts and estates are estates. Even though Florida living trusts, also called Florida revocable trusts, can go hand in glove with Palm Beach estates & probates, they are different. Consult the Florida Trust Code for the “rules of the game.” Here’s the URL for the entire Florida Trust Code: http://www.leg.state.fl.us/STATUTES/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0736/0736PARTXContentsIndex.html
- Did the Trust document let you off the hook or change the standard of care? Sometimes Palm Beach estate planning attorneys draft an exculpation clause in the Trust Document. The trust beneficiary from Boca Raton may be complaining about your conduct and accusing you of being negligent, but the Delray Beach Trust document says that you are only liable for “reckless” or “intentional” acts.
- Did some Ft. Lauderdale trust beneficiary consent to what you did, waive his or her rights or , better yet, approve or RATIFY what you did? Read Section 736.1012 of the Florida Trust Code.
- Did some third party cause the trust harm or damage ? Was there an investment agent from Weston, Florida who lost money for the trust? Was there a Jupiter Trust Lawyer who gave advise? Florida Trust Code Section 736.1013(2) suggests that there is NO PERSONAL LIABILITY for a Florida trustee if you are not personally at fault.
- Has the Florida statute(s) of limitations expired? Read Section 736.1013 (3). Ask your Palm Beach trust trial lawyer about the 6 MONTH STATUTE OF LIMITATIONS and trust disclosure documents which are a Florida trustee’s best friend.
- What did the Florida trust beneficiary know and when did they know it? Did the TRUST BENEFICIARIES receive statements ? Or Florida Trust Accountings ? If so, you want to argue consent, waiver, ratification, or statute of limitations.
Q: how long is the statute of limitations for a Florida trust lawsuit ?
A: It depends on what the trustee disclosed to the trust beneficiaries, how it was disclosed and when it was disclosed. In some instances, the statute of limitations for a trust beneficiary to file a trust lawsuit and sue a Palm Beach trustee may be as short as 6 months. It might be 4 years, or conceivably even longer if there was a continuing tort.
7. Are others responsible for the damage to the trust? See Florida Trust Code Section 736.1002 regarding contribution. Ask your Palm Beach trust litigation team about indemnity and whether any exists.