An Overview of the Responsibilities of a Trust Administrator in Florida
A trust can be a very useful estate planning tool. In Florida, a trustee must be named to manage and oversee the trust. Trust administrators have important legal responsibilities. Here, our St. Petersburg trust administration attorney provides an overview of the responsibilities of a trust administrator in Florida.
There is a Duty to Administer a Trust in Good Faith and in Accordance With the Terms
It is important to note that a trustee in Florida does not operate with informal discretion. The Florida Trust Code imposes defined fiduciary duties. Under Fla. Stat. § 736.0801, a trustee must administer the trust in good faith, in accordance with its terms and purposes, and in the interests of the beneficiaries. For example, if the document directs a specific distribution scheme or investment restriction, the trustee must follow it unless a court authorizes deviation.
The Trustee Owes a Duty of Loyalty to the Beneficiaries of the Trust
The trustee also owes a duty of loyalty under Florida law. Among other things, that means that self-dealing is prohibited unless the trust expressly authorizes the transaction or the beneficiaries provide informed consent. A trustee cannot use trust property for personal benefit. In fact, even the appearance of divided loyalty can expose the trustee to surcharge liability.
A Trustee has a Duty of Prudence (Investments/Asset Management)
Florida law requires trustees to invest and manage trust assets as a prudent investor would. In evaluating compliance with this specific metric, a court will focus on the portfolio as a whole and on risk and return objectives reasonably suited to the trust. A trustee must consider factors such as economic conditions, tax consequences, liquidity needs, and the duration of the trust. To be clear, the duty does not demand perfect investment performance. It demands process. A trustee must evaluate assets, diversify unless special circumstances justify concentration, and document decision-making.
There is a Duty of the Trustee to Inform, Account, and Remain Transparent
Transparency forms a core component of Florida trust administration. Under Florida law, a trustee must keep qualified beneficiaries reasonably informed about the administration of the trust and material facts necessary to protect their interests. The obligation includes providing a copy of the trust instrument upon request and delivering annual accountings that disclose receipts, disbursements, and asset values. A trustee cannot withhold information to avoid scrutiny. Beneficiaries have the right to evaluate whether the trustee complies with fiduciary duties. Without proper transparency, a trustee may be in violation of their duties under Florida state law.
Speak to Our Florida Trust Administration Lawyer Today
At Fisher & Wilsey, P.A., our St. Petersburg trust administration attorney has the knowledge and experience that you can rely on. If you have any questions about the responsibilities of a trust administrator, please do not hesitate to contact us today for a fully confidential consultation. From our St. Petersburg office, we handle trust administration throughout the region in Florida.
