October 1, 2014: Miami Trust Lawsuit– Nephew Sues Trustees Over Trust Gifts for Education; Trustee Bank Breached Duties
Two Miami trustees were found to have committed breach of trust after a trial over a Fourth Amended and Restated Revocable Trust Agreement. Anyone involved with an irrevocable trust in Florida, such as a trust beneficiary, may want to read thisFlorida trust ruling which went to the Miami Dade appeals court. This case is particularly important for beneficiaries who may or may not get educational expenses or tuition paid for from a trust and also for those trust beneficiaries of a revocable trust which later becomesirrevocable. In this trust tuition case, the creator of the trust sent a letter to the co trustee bank with instructions which were later ignored.
Florida Revocable Trust Created
- Lola created a revocable trust, also known in Florida trust circles as a living trust or a revocable living trust
- There were a lot of trust amendments
- The creator of the trust sent a letter to her bank which was a co trustee telling them she wanted them to pay for a family member’s two final years of college at Yale
- The bank co Trustee didn’t listen.
- The trust creator dies November 8, 2010
Miami Probate Litigation
- Estate litigation Miami
- A disputed will (fourth codicil)
- Check to Yale for tuition and other expenses was not sent
- A trust lawsuit is filed against the co trustees for breach of written and oral contracts, promissory estoppel and breach of trust
- The trust beneficiary won the lawsuit over breach of oral promise or contract to pay unpaid Yale tuition and the breach of trust claim
Co-Trustees Lose Trust Lawsuit
- The co trustees used trust funds to pay their trust litigation attorneys
- Since the co trustees lost the trust lawsuit in Miami, the court ordered that the co trusteeRETURN those $$ to the trust
- Disgorgement of attorneys fees and costs by co-trustees after they lose the Florida trust lawsuit? Yes
Co-Trustees Ordered to Return Attorneys Fees & Costs to Trust
- What was interesting in the trust appellate court’s opinion was that the bank’s “attempt to impose additional procedural requirements— none of which are set forth in the Trust Agreement — is unavailing.”
- The appeals court found that the failure of the co trustee to carry out the terms of the Florida trust violated Florida Trust Code:
- Duty to administer the trust in good faith
- Duty to act impartially
- Duty to prudently adminster trust
- These breaches of trust duties established trustee liability
Here is the link to the probate opinion of Florida’s 3rd District Court of Appeal: http://www.3dca.flcourts.org/Opinions/3D12-2977.pdf