Florida Trust Beneficiaries Sue Out of State Trustees: February 4, 2015 trust case from Palm Beach’s 4th District Court of Appeal
Few people think about it but when you go into another state you submit yourself to the jurisdiction of that Court. Similarly, if you are a trustee of a trust in Florida, you may similarly be held accountable by Florida Courts even if you never have been to the State. This month a Florida Court handed down a decision that increases your rights to challenge a claim against you based on personal jurisdiction. If you are affiliated with a trust of other legal devise in Florida read more and know your rights.
- In Snider v. Metcalf which was handed down in the early days of February 2015 is acase brought by a son against a mother and other co-trustees of testamentary trusts established by the father, then deceased.
- The mother and other trustees filed a motion to dismiss but did not allege that thecourt lacked personal jurisdiction.
- The mother later raised this argument and the court granted her motion, dismissing the entire case.
- The son appealed this decision stating that since the mother had not raised the defense initially she had waived it under Florida law.
- The Court found that although the right to litigate personal jurisdiction can be waived, it was not in this case and the entire case was thrown out.
Out of State trustees have this ace in the hole: they may not even have to show up in a Florida Court, you may have to go find them where they live. If you are considering setting up a testamentary trust here are some things to consider when choosing a trustee:
- Who is going to take over after the first round leave? Will these new trustees be local?
- Who will decide how and when new trustees take place, often this is a time where conflict erupts.
- Will the trustee be allowed to live out of state?
- Is part time residency in another state likely to turn into full time residency after retirement?
- What happens if you have a local trustee who wants to move out of state? Do they automatically have to surrender their position?
These are just some of the questions to consider in a case where out of state trustees may become an issue. This is by no means an exhaustive list though and only you and an experienced probate attorney can attempt to fully understand all these intricacies in relation to your actual estate.
Want to read the entire opinion? Here it is: http://www.4dca.org/opinions/Feb%202015/02-04-15/4D13-4043.op..pdf