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Florida Trust Accountings and Remainder Beneficiaries

Uncategorized Nov 15, 2016
post about Florida Trust Accountings and Remainder Beneficiaries

Florida’s 4th District Court of Appeal ruled October 26, 2016, that a remainder beneficiary of a Florida trust has no right to a trust accounting, when requested post-death, for the time period of the grantor’s life, absent breach of trust allegations. This was a revocable trust which became irrevocable upon the death of the grantor/settlor.

In  Hilgendorf v. Estate of Coleman, opinion attached, the grantor was alive and competent and was her own trustee of her revocable trust. During grantor’s life, she was succeeded in office by the successor trustee, although the grantor continued to “run” things.   So, grantor resigns as trustee during her lifetime.   Grantor, who was the beneficiary of her revocable trust, never requested an accounting from the successor trustee. Then,after the grantor’s passing, a Personal Representative of the estate, and also a beneficiary, requested an accounting from the successor trustee for the time period prior to the grantor’s death—when the trust was revocable.

 Under the very limited facts of this case, the trust was not required to account:

·       The trust terms did not require an accounting (whatever that means).

·       The grantor (settlor) never requested accountings during her lifetime.

·       There was no showing of any breach of fiduciary duty on the part of the trustee

 Whether one is entitled to a pre death accounting of a revocable trust is a question of law which is subject to the de novo standard of review. See Corya v. Saunders, 76 So. 3d 31 (Fla. 4th DCA, 2011)

In this Hilgendorf case, Hilgendorf just sued to get an accounting.  She did not allege that there was mis-management, or a violation of  the trust terms, or a breach of fiduciary duty.  This, in the eyes of the 4th, was fatal.

 The 4th DCA was unimpressed that Hilgendorf merely raised a general right to an accounting, which it, in essence, denied.   The 4th cited the general principle that there is no duty to render accountings to a contingent remainder beneficiary while a trust remains revocable.  That’s just the statute.  Then the 4th went further: there is no authority to impose the duty of rendering an accounting  retroactively after the settlor/grantor is deceased and the trust becomes irrevocable, absent any claim of breach of fiduciary duty in carrying out the terms of the trust.  In other words, if the trustee was stealing money before the settlor’s death, you, a remainder beneficiary, can’t see that after the death of the settlor.  Maybe. Maybe not.  Well, you at least have to allege that there was a breach of fiduciary duty or a violation of the trust terms.  The 4th seems to be saying:  if the settlor grantor did not raise an objection during her life, we are not going to let you, some remainder beneficiary, see the books and records of the trust for pre-death matters—UNLESS you allege wrongdoing.