If you've recently been named a trustee — or if you're a beneficiary of a trust here in Florida — you may be wondering exactly what the law requires and what your rights actually are. Florida's Trust Code, found in Chapter 736 of the Florida Statutes, lays out a detailed roadmap for how trusts must be administered, and understanding even the basics can save you from costly mistakes or missed opportunities. Let's walk through some of the most important provisions in plain language so you know what to expect.
What Is Trust Administration, and When Does It Begin?
Trust administration is the process of managing and distributing trust assets according to the terms of the trust document and Florida law. For a revocable living trust, administration in the full legal sense typically kicks in when the person who created the trust — called the settlor or grantor — passes away or becomes incapacitated. At that point, the successor trustee steps in and takes on a set of duties that are defined and enforceable under Florida law.
Unlike probate, which is a court-supervised process, trust administration generally happens outside of the courthouse. That's one of the main reasons people choose to create trusts in the first place — to keep asset transfers private and avoid the time and expense of probate. However, 'outside the courthouse' doesn't mean 'without rules.' Chapter 736 imposes significant obligations on trustees, and beneficiaries have real, enforceable rights. Ignoring those rules can expose a trustee to personal liability.
The Trustee's Duty to Inform: § 736.0813, Fla. Stat.
One of the most practically important statutes in Chapter 736 is § 736.0813, which governs a trustee's duty to keep beneficiaries informed. Under this section, a trustee must promptly notify 'qualified beneficiaries' — generally those who are currently eligible to receive distributions or would be if the trust ended today — within 60 days of accepting the role as trustee. That notice must include the trustee's name and contact information and must inform beneficiaries of their right to request a copy of the trust document.
The statute also requires trustees to keep qualified beneficiaries 'reasonably informed' about the trust and its administration on an ongoing basis, and to respond to reasonable requests for information within a reasonable time. In plain terms: if you are a beneficiary and you ask your trustee a reasonable question about what's happening with the trust assets, Florida law says you are entitled to an answer. If you are a trustee and you've been going silent, that silence could be used against you later.
Trust Accountings: What § 736.08135 Requires
A trust accounting is essentially a financial report — a breakdown of what came into the trust, what went out, and what's left. Under § 736.08135, Fla. Stat., a trustee is required to provide an accounting to qualified beneficiaries at least annually, and also at the end of the trust's administration. Florida law specifies exactly what must be included: a statement of receipts and disbursements, a list of trust assets and their values, and disclosure of any trustee compensation.
This matters a great deal in practice. Beneficiaries sometimes discover through accountings that assets are missing, that the trustee has been paying themselves more than the trust allows, or that investments have been mishandled. The accounting is often the first document that reveals a problem. Trustees should know that a deficient or missing accounting is not just a procedural slip — it can form the basis of a legal claim for breach of fiduciary duty. If you're a trustee and you're unsure how to prepare a proper accounting, it's worth getting guidance before you find yourself in a dispute.
The Prudent Investor Standard: § 736.0901, Fla. Stat.
Florida's version of the Uniform Prudent Investor Act is codified at § 736.0901 through § 736.0913. The core idea is straightforward: a trustee must manage trust investments as a prudent investor would, considering the trust's overall purposes, distribution requirements, and the beneficiaries' needs. This means trustees can't just park money in a single risky stock or let cash sit idle collecting no interest — they have to think strategically about the whole portfolio.
The standard is not about guaranteeing good results. A trustee who makes a thoughtful, diversified investment decision that still loses money is not automatically liable. But a trustee who ignores risk, concentrates assets unwisely, or fails to diversify without good reason may well be. Florida courts have consistently treated the prudent investor standard as a meaningful benchmark, not a rubber stamp. For Central Florida trustees managing inherited investment accounts, real estate, or business interests, understanding this standard isn't optional — it's the foundation of the job.
Trust Modification and Decanting: Flexibility Built Into Florida Law
Many people assume that once a trust is signed and becomes irrevocable, it can never be changed. Florida law is actually more flexible than that. Under § 736.04113 and related statutes, courts can modify an irrevocable trust if circumstances have changed in ways the settlor didn't anticipate, or if continuing the trust as written would be impractical or wasteful. Modification can also happen by agreement among the settlor and all qualified beneficiaries under § 736.0411.
Florida also allows 'decanting' under § 736.04117 — a process where a trustee with discretionary distribution authority essentially pours the assets of an older trust into a new, updated trust with better terms. Think of it like pouring wine from an old bottle into a new one. This can be useful for fixing poorly drafted language, updating trustee succession provisions, or adapting to changes in tax law. Decanting has specific procedural requirements, including notice to qualified beneficiaries, so it should always be done with the help of a knowledgeable Florida trust attorney.
Revocable vs. Irrevocable Trusts: A Critical Distinction
Not all trusts work the same way, and Florida law treats revocable and irrevocable trusts quite differently during the settlor's lifetime. While the settlor is alive and has capacity, a revocable trust is essentially an extension of the settlor — the trustee's duties to beneficiaries are largely owed to the settlor alone, not to remainder beneficiaries, per § 736.0603. That changes completely at death, when the trust becomes irrevocable and the full weight of Chapter 736's beneficiary-protection rules kicks in.
Irrevocable trusts created during a settlor's lifetime — such as special needs trusts, Medicaid planning trusts, or irrevocable life insurance trusts — are governed by those rules from day one. If you're a trustee of an irrevocable trust, you already have all of the duties and all of the potential liability that comes with the role. Understanding which type of trust you're dealing with is the first question any Florida trust attorney will ask, because the answer shapes everything that follows.
Trust administration under Florida law is far more structured than most people realize, and the responsibilities on both trustees and the rights of beneficiaries are very real. Whether you've just been named a successor trustee, you're a beneficiary wondering why you haven't heard anything, or you're thinking about how to structure your own estate plan, understanding Chapter 736 is a meaningful first step. The attorneys at Yergey & Yergey, P.A. have been helping Central Florida families navigate these questions since 1928, and we're always happy to have a straightforward conversation about your situation.
This article is intended as a general overview and does not address every fact pattern or recent change in Florida law. Florida statutes are amended regularly; consult a Florida-licensed attorney for guidance specific to your matter.
