Co-Trustees Deadlocked in Florida? Understand Your Court Options

When co-trustees can’t agree, Florida law still gives the trust a path forward. Co-trustees who cannot reach a unanimous decision may act by majority, and a court can step in when a split blocks the trust.

Leslie V. Marenco is responsible for this page. Trust Counsel, PL has its only office in Coral Gables, Florida. We serve clients in Coral Gables, Doral and Key Biscayne.

What Is the Difference Between Trustees and Co-Trustees?

A trustee holds legal title to trust property and manages it for the beneficiaries. A co-trustee is one of two or more trustees serving together under the same trust. The trust document usually names them, and a court can appoint them when needed.

Each co-trustee owes duties to the beneficiaries. That means one co-trustee cannot simply step back and let the other make every decision. A co-trustee’s duty runs to the people the trust serves, not only to the other trustee.

The trust terms may also give one co-trustee a specific task. When that happens, the answer to who must agree on that task changes. Start any review by reading the trust document for that language, because it sets the rules for every decision that follows.

Do All Trustees Have to Agree?

Not always. Florida law says co-trustees who cannot reach a unanimous decision may act by majority decision (Fla. Stat. § 736.0703). Unanimity is the goal, but it is not the only path.

Under Fla. Stat. § 736.0703, cotrustees who are unable to reach a unanimous decision may act by majority decision. Separately, under Fla. Stat. § 736.0703(5), a cotrustee may not delegate to another cotrustee the performance of a function the settlor reasonably expected the cotrustees to perform jointly, except that a cotrustee may delegate investment functions to a cotrustee pursuant to and in compliance with s. 518.112, and a cotrustee may revoke a delegation previously made. That is when a deadlock becomes a serious problem.

A cotrustee also cannot hand off a job the settlor reasonably expected the trustees to do together. Whether a sale, a distribution or an investment needs a majority or every trustee’s agreement depends on the trust terms and the facts.

What a Deadlock Looks Like in Practice

A deadlock means co-trustees cannot make a decision the trust needs. Common examples include one co-trustee refusing to sign a sale contract, distributions halting, or an accounting never being approved.

While the split continues, trust assets can sit idle. Property taxes, insurance and repairs still come due. Beneficiaries may wait months for money they expect, and the cost lands on the trust itself.

One mistake to watch for here. They stop talking and say nothing in writing. Silence makes it hard to show what each trustee proposed and why. Florida law protects a dissenting co-trustee who objects the right way. Under § 736.0703, a dissenting cotrustee who joins an action at the majority’s direction is not liable. That protection applies if the dissenter notified a cotrustee of the dissent at or before the action. A cotrustee who does not join an action is also generally not liable for it. The same section still requires each cotrustee to use reasonable care to prevent a breach and to compel redress of one. Staying silent is not a safe harbor under that duty.

Asking the Court to Step In When Co-Trustees Cannot Agree

A court can step in when an interested person asks it to. A letter to the other trustee does not start a court case.

The statute lists the matters a court can hear in § 736.0201(4), including proceedings to appoint or remove a trustee, review trustees’ fees, and determine other matters involving trustees and beneficiaries. These include instructing trustees, appointing or removing a trustee, and determining other matters between trustees and beneficiaries. The court’s involvement follows from an interested person invoking its jurisdiction (§ 736.0201(2)).

The available remedies appear in § 736.1001. To remedy a breach of trust that has occurred or may occur, a court may compel a trustee to perform duties. It may order a trustee to account, appoint a special fiduciary to take possession of trust property, or suspend a trustee. It may also reduce or deny compensation. Each remedy depends on what the court finds.

A trust is not under continuing court supervision unless a court orders it (§ 736.0201(3)). A deadlock case usually focuses on one dispute, not the whole trust.

Removing or Replacing a Co-Trustee

A court may remove a trustee on grounds the statute lists. Under § 736.0706, the settlor, a cotrustee or a beneficiary may ask the court to remove a trustee. The court may also act on its own initiative.

The listed grounds include a serious breach of trust. They also include a lack of cooperation among cotrustees that substantially impairs the administration of the trust. General disagreement is not enough by itself. A request should rest on specific facts, such as a documented refusal to act or missed distributions.

To remedy a breach of trust that has occurred or may occur, the court may order relief under § 736.1001; while a removal request is pending, that relief is available under § 736.0706(3). That relief protects the trust property and the beneficiaries’ interests (§ 736.0706(3)).

Replacement comes after a removal or a resignation. Under § 736.0704, a vacancy need not be filled if one or more cotrustees remain. A vacancy must be filled if no trustee remains. For a noncharitable trust, the order of priority for filling a required vacancy is a successor the trust names, then a person chosen by unanimous agreement of the qualified beneficiaries, then a person the court appoints (§ 736.0704); a charitable trust uses a different order.

When a Neutral Professional Trustee Is Considered

A court may consider a neutral fiduciary when co-trustees stay stuck. Under § 736.0704, the court may appoint an additional trustee or a special fiduciary. It can do so whenever it finds the appointment necessary for administering the trust, even without a vacancy.

The court may appoint an additional trustee or special fiduciary whenever it considers the appointment necessary for the administration of the trust (§ 736.0704); the special fiduciary’s power to take possession of trust property and administer the trust is in § 736.1001. That power is set out in the same section. A court is not the only option. Under Fla. Stat. § 736.0704(3), a vacancy in a noncharitable trust that must be filled goes first to a person named or designated in the trust terms to act as successor trustee. If no such person applies, the qualified beneficiaries may unanimously agree on a person to fill the vacancy before any court appointment is made.

Who gets appointed depends on the trust terms and the court’s assessment. A neutral is not automatic. A court weighs the trust’s needs before it adds or replaces a trustee.

Trust Counsel’s attorneys can serve individually as trustee or personal representative. The firm advises and represents trustees, personal representatives and beneficiaries. If a neutral fiduciary is on the table, ask how each option fits your trust’s facts.

What Beneficiaries Can Do While the Dispute Is Pending

Beneficiaries can ask for information now, without waiting for a court ruling. Under § 736.0813, a trustee must keep qualified beneficiaries reasonably informed. On reasonable request, the trustee must provide a complete copy of the trust instrument.

Upon reasonable request, the trustee must provide a qualified beneficiary with relevant information about trust assets, liabilities and administration. Read any waiver carefully before you sign it.

A proper accounting identifies trust assets on hand and values them. Under § 736.08135, it must also identify each known noncontingent liability, with an estimated current amount if known.

Keep a dated timeline. Record each request, each missed distribution and each reply from the co-trustees. Those notes help a lawyer review the facts.

A violation by a trustee of a duty owed to a beneficiary is a breach of trust (§ 736.1001). A trustee who commits a breach of trust is liable for the greater of the following: the amount required to restore the value of the trust property and trust distributions to what they would have been if the breach had not occurred, including lost income, capital gain, or appreciation that would have resulted from proper administration; or the profit the trustee made by reason of the breach (§ 736.1002). Whether a claim exists turns on each case’s facts.

Related Florida Estate Questions That Often Arise Alongside Trustee Disputes

Trustee disputes often sit beside estate questions. Who can act for an estate, and when, is one common issue. If the first personal representative cannot serve, a successor may need to be appointed. See our successor personal representative appointment page for that issue. Florida-specific trust litigation information is on our Florida page.

Discuss Your Co-Trustee Dispute With Trust Counsel, PL

A stalemate over a sale, a payment or an accounting can leave trust assets idle while beneficiaries wait. If that is your situation, gather the trust document, every written message between the trustees and a dated list of missed decisions. Trust Counsel, PL offers a free first consultation, which is confidential and carries no obligation to continue. Call (305) 707-7126 or schedule online. This matter may be referred to another lawyer or firm if needed.