Trust Administration in Fruitland Park, FL
Here For You Throughout The Trust Administration Process
Trust administration occurs outside the court’s oversight, which is an advantage over probate and guardianship cases. This lack of court oversight does, however, come with risks many people – especially trustees – overlook or fail to consider.
Trust administration goes hand-in-hand with estate planning, which is an area of law I have been practicing for years. I use what I know about estate planning to guide trustees in carrying out their fiduciary duties. When you work with me, I will provide valuable and compassionate legal support to help clients through the trust administration process.
What Is Trust Administration?
The Florida Trust Code and the terms of the written trust document govern the Trust administration process. Without proper vigilance, any number of issues may arise that could result in the loss of assets, unexpected taxes, expensive litigation and permanently damaged relationships. Meanwhile, a beneficiary needs to know their rights so they have a reasonable expectation as to how the trust will be managed and how they will be treated by the trustee. A trustee is required to adhere to the terms of the Trust and the Florida Trust Code. By law, the trustee must use Trust assets for the sole benefit of the beneficiaries identified in the Trust. The performance of the trustee’s duties, and the procedures the trustee must follow, is known as “Trust Administration.”
A deep understanding of Florida’s trust laws and the unique estate planning needs of residents in Fruitland Park is essential for effective trust administration.
Trust administration always involves at least 2 of the following 3 parties:
- Grantor: The person who created the Trust
- Trustee: The person or corporation tasked with administering the Trust
- Beneficiary: The person(s) or charity to receive the benefits of the Trust
For a Revocable Living Trust, the grantor may also be the trustee and beneficiary when the Trust is first created, but eventually the grantor will become unable to fulfill the trustee role due to either incapacity or death. When this happens and a new – or successor – trustee takes over; this is when “Trust Administration” begins.
What Are A Trustee’s Fiduciary Duties?
A “fiduciary duty” is any duty requiring a person to act in a legal and ethical manner for the benefit of another, making them responsible for managing the trust in accordance with its terms. According to the Florida Trust Code, trustees must fulfill the following fiduciary duties:
- Duty to administer the Trust in good faith and in accordance with the terms of the Trust and for the purposes set forth in the Trust. S. 736.0801
- Duty of loyalty to administer the Trust solely for the benefit of the beneficiaries of the Trust. S. 736.0802
- Duty to act impartially and without bias, giving due regard to each beneficiary’s interest. S. 736.0803
- Duty to administer the Trust in a prudent manner by considering the purposes, terms, distribution requirements, and other circumstances of the Trust and thereafter exercise reasonable care, skill, and caution when taking actions on behalf of the Trust. S. 736.0804
- Duty to take reasonable steps to protect the estate’s assets from waste, theft, damage, or mismanagement. S. 736.0809
- Duty to account and maintain records regarding the Trust’s administration, as well as the duty to keep assets of the Trust separate from the assets of the trustee. S. 736.0810
- Duty to enforce claims and preserve Trust property. S. 736.0811
- Duty to keep Trust beneficiaries informed with relevant information about the assets and liabilities of the Trust, as well as the ongoing operations of the Trust. S. 736.0813(1)(e)
- Coupled with each of these duties is an ethical component that demands a trustee not lie, cheat, steal, or defraud those to whom their duties are owed.
This list of fiduciary duties does not, however, contain all the duties and obligations that a trustee must fulfill. There are additional statutory requirements, plus the express terms of the trust document itself, that must be fulfilled to ensure that the trustee satisfies their legal obligations.
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At Marshall Law, we’re here to help you understand your options, protect your loved ones, and navigate the process with compassion and clarity. Call us at (352) 432-8859 or complete our online contact form to schedule your consultation. Let us help you secure peace of mind for yourself and your family.