When you have a trust that you are a beneficiary of you have a right to order anaccounting of that trust. The Fourth District recently dealt with the issue of laches and the right to demand an accounting as beneficiary of a trust. Laches is a defense to a lawsuit which basically says that the person who filed the suit waited too long and should be stopped from bringing the action legally. The Court in Corya v. Sanders took a hard line that a beneficiary need not know of a legal right for it to begin tolling under the doctrine of laches.
- Appellant Corya was the trustee for four revocable trusts for her lifetime and she was also the major beneficiary.
- Upon her death, the trusts were to be divided amongst her children, one of which was Appellee Sanders.
- Sanders asked the Court for an accounting since the trust’s inception, but Corya argued that under Florida latches barred the claim.
- Furthermore a recent change in Florida law had only created a duty for accountings from 2007 on, but the Court ruled that this was only regarding the annual duty of accounting, and that Corya normally would have an obligation to account for the trust from its inception.
- Thus the Court found that Corya had a duty to account for the trust prior to 2007.
- The Court found however that the laches doctrine did stop the action.
- Sanders argued that he was unaware of his right to demand an accounting prior to meeting with an attorney in 2007.
- The Court held that the knowledge of a legal right is not what determines whether the claim is barred by latches, rather it is when the right came to fruition.
- In Florida the statute for laches applicable to a case like this was four years.
The Court ultimately remanded the case for a new trial in conformance with the terms setout in their holdings. This case can affect many trustees and beneficiaries in Florida. You should be aware that under Florida laches your rights are on a timer that is ticking whether or not you are aware they exist in the first place! Furthermore, the duty of a trustee extends to accountings prior to 2007 and failure to account is a breach of the trustee’s duty.
Read the whole case here: http://www.4dca.org/opinions/Feb%202015/02-11-15/4D12-3067.op.pdf
Want to learn more about the trustee’s duties? Want to learn more about how you can exercise your rights as a beneficiary of a trust? Learn more at our FAQ video library: http://www.pankauskilawfirm.com/