Ten Things Your Trustee HAS to Do in Florida!

Trusts are not a one size fits all kind of thing so I cannot provide you with an exhaustive list of the duties of your trustee. But certaingeneral duties are a result of the Florida Trust Code and apply to all trusts. Here are ten duties your trustee owes you. If a trustee in Florida fails to fulfill their duties you may havean action for breach of fiduciary duty of the trustee and be entitled to cash damages. 

1. Duty to Administer the Trust in good faith and accordance with its purposes and the Florida trust code.
2. Duty of Loyalty. A trustee cannot engage in self dealing for its own advantage of profit, it must be loyal to the trust and beneficiaries. The trustee violates the duty of loyalty any time a transaction is entered for the trustee’s own advantage or benefit. These are general voidable by the court. 
3. Duty of Prudence. The trustee must administer the trust as a prudent person would after considering the purpose of the trust, its terms, what the circumstances of the trust and market are etc. The trustee also cannot incur unreasonable expenses.
4. Duty of Special Skills means that a trustee with special skills will be held responsibleto utilize those skills. So for example if two people have their sons act as trustees and one is an investment banker they will be held to a higher standard.
5. Duty to control, collect and protect the trust property, and assets. 
6. Duty of Impartiality. If a trust has more than one beneficiaries, the trustee must act impartially in administering the trust assets, giving  dual consideration to the beneficiaries respective interests.
7. Duty to keep records. This duty includes a duty to not comingle funds with his own. In other words he must keep good records and his funds separated.
8. Duty to Account.  The trustee must keep the trust accounted for using reasonable accounting measures. Recently Florida law was amended to require an annual accounting disclosure.
9. Duty to Distribute. A trustee must distribute funds per the terms of the trust. In the event the document is not clear on distributions the trustee usually has to distributeannually. 
10. Duties Regarding Tax. It is the trustee’s duty to file all necessary tax returns.

This list is not exhaustive but outlines the general duties of the trustee in Florida. To learn more about this review the Florida Trust Code, which is available free online here:http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=Ch0736/titl0736.htm&StatuteYear=2007&Title=-%3E2007-%3EChapter%20736

In Florida there is a statute of limitations on a breach of fiduciary duty which limits the amount of time you have to file a complaint in court. Want to learn more about your rights as a beneficiary of a trust in Florida? Check out our FAQ video library at:http://www.pankauskilawfirm.com/