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Should I Resign as Florida Trustee

Probate Information • Mar 14, 2021
post about Should I Resign as Florida Trustee

Many family members are appointed as a successor trustee of a Florida Trust. Is it worth it? Should you decline to serve? Or, if you are already serving as trustee, should you resign? We have previously provided numerous FREE FLORIDA TRUST videos and other written commentary. We have even provide professional webinars on defending trustees, which were approved by the Florida Bar. Now, let’s discuss why you may want to resign as Florida trustee.

5 Reasons To Resign as Florida Trustee

Pankauskis Trusted Guide book
Resign as Florida Trustee. Trustees may hire professionals to help them. They may also pay reasonable compensation to those trust experts from the trust.
  1. Why? Why in the world would someone want to take on the job of being a trustee? It’s work! A Florida trustee has to communicate with her beneficiaries. And I’m not talking about responding to emails only. You have to provide relevant information in a timely manner. And a Florida trustee has to provide annual accountings. To read more about Florida Trust Law for free, click on THIS LINK. To read about signing a trustee declination, CLICK THIS LINK.
  2. Time. Secondly, do you have the time to devote to investing trust assets, understanding the trust document? And, of course completing the annual accountings? A bad trustee ignores her beneficiaries. A good trustee follows Florida Trust Law and responds adequately within the proper time frame. Understanding how you do this is important. Being upfront with yourself is also important. “I can’t tell you how many clients were hell-bent on being trustee” says trust litigator John Pankauski. “And then the fighting starts and they want out.” To read Pankauski’s book on serving as trustee of a family trust, CLICK HERE. Yes, Pankauski is really the Florida Trust Expert who wrote the book on family trustees.
  3. The trust is not always clear. Even in the face of what seems to be clear language, trust beneficiaries and trustees can differ. “That often leads to what we call “dec actions says Pankauski. He should know. He files numerous dec actions both for trustees and beneficiaries. In a Florida dec action, one asks the Court to make a declaration. Often, this means having the probate judge tell everyone who is fighting what the trust means.
  4. Skills + Discretion. While it’s true that a Florida trustee can hire investment managers, accountants and lawyers, there’s more to running the trust than that. And, yes, the trust pays for those professionals as long as the fees are reasonable. But, says Pankauski, you can’t run from your discretion. “Generally, a trustee may not delegate discretionary acts”. That includes making some tough calls when beneficiaries ask for money or trust property.
  5. Removal and Damages. Remember that there is a specific Florida Trust Law on Trustee Removal. And a whole list of damages available to trust beneficiaries. Don’t forget the remedies available to Florida Trust Beneficiaries. “Your roadmap to trust lawsuits is right there in the statutes.” Finally, Pankauski reminds us, no one likes paying lawyers or trustees. “We have represented and sued trustees over excessive trustee compensation says Pankauski. In other words, there is a potential downside to serving as trustee. So, whether you should resign as Florida trustee, or not, is worthy of at least some consideration. If continuing on as a Florida trustee is not for you, talk to an Florida trust expert. “Knowing how to resign is just as important as the decision to get out” says Pankauski. The last thing a Florida trustee wants to do is resign on a Monday and get sued on a Tuesday.
Knowing how to resign as Florida trustee can be as important as making the call to get out.