Florida Trust Administration Explained: What the Florida Trust Code Means for You

If someone has named you as a trustee — or if you stand to inherit from a trust — Florida law places a surprisingly detailed set of rules on how that trust must be managed. The Florida Trust Code, found in Chapter 736 of the Florida Statutes, governs nearly every aspect of trust administration in our state. Understanding a few key provisions can save families from costly mistakes and help everyone involved feel confident about the process.

What Is Trust Administration, and When Does It Begin?

Trust administration is the process of managing and distributing a trust's assets according to the trust document and Florida law. For a revocable living trust, administration in the full sense typically kicks in when the person who created the trust — called the settlor — either becomes incapacitated or passes away. At that point, the successor trustee steps into a role that carries real legal responsibility, not just paperwork.

Under § 736.0813, Fla. Stat., a trustee has a duty to keep the beneficiaries reasonably informed about the administration of the trust and of the material facts necessary to protect their interests. In plain English: once you become a trustee, you cannot simply manage the trust in silence. Beneficiaries have a right to know what is going on, and ignoring that obligation can expose a trustee to personal liability.

The Statute Everyone Should Know: § 736.0813 and the Duty to Inform

Section 736.0813 is one of the most practically important provisions in the Florida Trust Code. It requires a trustee to notify certain beneficiaries within 60 days after accepting a trusteeship or after the death of the settlor of a revocable trust. That notice must include the trustee's name and contact information, the right of beneficiaries to request a copy of the trust document, and a statement that the trust has become irrevocable upon the settlor's death.

This 60-day clock matters. Trustees who miss it are not automatically off the hook with a simple apology — delays can erode trust among beneficiaries and, in contested situations, become evidence of a broader breach of fiduciary duty. If you have recently become a successor trustee for a family member here in Central Florida, this notification requirement is one of the very first tasks on your to-do list.

Trust Accountings: Your Rights Under § 736.08135

One of the most common questions beneficiaries ask is: 'Can I see what the trustee is doing with the money?' The answer, under Florida law, is generally yes. Section 736.08135, Fla. Stat., requires a trustee to provide a trust accounting at least annually, at the termination of the trust, and upon a change of trustee. The accounting must follow the Florida Accounting Code's formatting requirements and cover income, expenses, distributions, and the value of trust assets.

A 2020 amendment to this statute reinforced the specific line-item detail required in accountings, making it harder for trustees to provide vague or summary reports that obscure what is really happening. If you are a beneficiary and the trustee is handing you a one-page summary that raises more questions than it answers, Florida law may well entitle you to something more thorough. Conversely, if you are a trustee, working with an attorney to produce a properly formatted accounting from the start protects you from later disputes.

The Prudent Investor Standard: § 518.11 and Chapter 736

Florida trustees are held to what the law calls the 'prudent investor standard,' codified in § 518.11, Fla. Stat., and incorporated into the Florida Trust Code through § 736.0901. This standard requires a trustee to invest and manage trust assets as a prudent investor would, considering the purposes, terms, and circumstances of the trust. It is not about making every investment a winner — it is about following a reasonable, documented process.

What this means practically is that a trustee cannot simply leave trust funds sitting in a non-interest-bearing account for years, nor can they make highly speculative investments with a beneficiary's inheritance. The trustee must consider the overall trust portfolio, the risk tolerance implied by the trust's purpose, and the needs of both current beneficiaries and those who will inherit later — called remainder beneficiaries. When these interests conflict, the trustee must balance them fairly.

Trust Modification and Decanting: Flexibility Built Into Florida Law

Many people assume that once a trust is irrevocable, nothing can change. Florida law is actually more flexible than that. Under § 736.04117, Fla. Stat., Florida authorizes a process called 'decanting,' which allows a trustee with the power to make discretionary distributions to essentially pour the assets of an existing trust into a new trust with updated terms. Think of it like transferring wine from an old bottle into a new one — the assets move, but the trust itself gets a fresh set of rules.

Decanting can be useful when the original trust language is outdated, when tax laws have changed, or when a beneficiary's life circumstances have shifted dramatically — for example, a beneficiary who has developed special needs and would benefit from a properly structured special needs trust. Florida's decanting statute does include limitations and notice requirements, so this is not a decision a trustee should make without careful legal guidance. But the fact that the option exists is something every trustee and beneficiary should be aware of.

What Happens When Trustees and Beneficiaries Disagree?

Disputes in trust administration are more common than people expect, especially in blended families or when significant assets are involved. Florida law provides a structured pathway for resolving these disagreements. Under § 736.0201, Fla. Stat., Florida circuit courts have jurisdiction over trust matters, and Orange County, Osceola County, and Seminole County courts regularly handle trust accountings, trustee removal proceedings, and breach of fiduciary duty claims.

Florida also encourages — and sometimes requires — mediation before a full court battle. For many families, a skilled mediator can help resolve disputes over trustee decisions, distribution disagreements, or accounting discrepancies far faster and at far less cost than litigation. Yergey & Yergey has offered mediation services for decades, and in many trust disputes, it remains a genuinely effective path to resolution that preserves family relationships.

One practical note: Florida law gives beneficiaries the right to petition for the removal of a trustee who has committed a breach of trust, become insolvent, or is otherwise unfit to serve. This is not a step to take lightly, but under § 736.0706, Fla. Stat., it is a real remedy available to beneficiaries who are being harmed by a trustee's misconduct or neglect.

Trust administration in Florida involves real deadlines, real duties, and real consequences — for trustees who fall short and for beneficiaries who do not know their rights. Whether you have recently become a trustee, received notice that you are a beneficiary, or are simply trying to plan ahead for your own family, the attorneys at Yergey & Yergey, P.A. are happy to sit down with you and walk through what Florida law means for your specific situation. We have been helping Central Florida families navigate these questions since 1928, and we would welcome the chance to help yours.