Suing a Florida Trust? Start With the Trustee's Conduct

Short Answer: Who Is Actually Sued When a Florida Trust Is Challenged

Can you sue a trust in Florida? Usually, you sue the trustee in the trustee’s role, and the trust property comes into the case where the claim requires it. A trust is a set of assets held under written rules. The trustee manages those assets.

Think of a trust as a locked box and the trustee as the person holding the key. If something is wrong with the box, the real question is usually what the key-holder did. Florida law says a claim based on a contract entered into in the trustee’s fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust can be asserted against the trustee in the trustee’s fiduciary capacity, whether or not the trustee is personally liable, according to Florida trustee liability rules.

Other people can also end up in a case. A third party who received trust property may be named, and who belongs in the case depends on the dispute itself.

The circuit court’s authority over trust cases covers all proceedings arising under that code.

Who Can Bring a Claim and Who Can Be Named

Beneficiaries are the people who usually bring trust claims. Florida law calls them qualified beneficiaries. On reasonable request, a trustee must give a qualified beneficiary a complete copy of the trust instrument, as stated in the duty to inform and account statute.

A trustee can face a claim in two ways. Personal money liability is narrower. A trustee is personally liable for torts in administering a trust only if the trustee is personally at fault.

The estate side uses different roles. A personal representative (often called an executor) manages a decedent’s probate estate, which is separate from trust administration. Florida also defines non-deposit trust companies that provide trustee and estate administration services.

Trust Counsel’s attorneys can serve individually as trustee or personal representative. The firm advises and represents trustees, personal representatives and beneficiaries.

Common Reasons Beneficiaries Sue a Trustee

The core claim is a breach of trust. Florida law says a violation by a trustee of a duty owed to a beneficiary is a breach of trust and its remedies.

Common grounds include the following:

• Conflicts of interest. A trustee must run the trust solely in the beneficiaries’ interests. Under Fla. Stat. § 736.0802, a deal that mixes the trustee’s personal interest with the trust is generally voidable by an affected beneficiary unless, for example, the trust terms authorized it. Separate time limits for breach-of-trust claims appear in s. 736.1008.
• Poor management. A trustee must act as a prudent person would, with reasonable care, skill and caution, under the prudent administration standard.
• Missing accountings. Under Fla. Stat. § 736.0813, for an irrevocable trust the trustee generally must provide an accounting to each qualified beneficiary at least annually, unless the trust terms of a licensed family trust company limit that duty or a qualified beneficiary waives it in writing. Florida requires that an accounting show all significant transactions, including the trustee’s compensation.

When a trustee skips reports or explanations, beneficiaries lose visibility. That gap is often where questions start. A court can order a trustee to account, compel performance, remove the trustee, or reduce or deny compensation, under the same remedies statute.

Trust Contest Versus Suing a Trustee: Why the Difference Matters

A trust contest asks whether the trust document itself is valid. Suing a trustee asks whether the trustee acted properly while running a trust.

In a contest, the person challenging the document carries the burden. Florida law says the contestant has the burden of establishing the grounds for invalidity. For a revocable trust, an action to contest its validity or a partial revocation cannot start until the trust becomes irrevocable by its terms or the settlor dies; if the whole trust has been revoked, a contest of the revocation cannot start until after the settlor’s death. This does not prohibit such action by the guardian of the property of an incapacitated settlor.

So can you sue a trust in Florida if you disagree with the document? You can challenge the document, but the timing and burden are different from a claim about trustee conduct. A single dispute can include both kinds of claims.

Related disputes, such as homestead property held in trust or beneficiary designations, fit these same two questions. Our trust litigation attorney page covers the broader topic in plain text, for readers who want a wider view.

Steps, Timing and Where a Trust Case Is Heard

Most trust disputes start with records. The usual sequence is reviewing the trust document, requesting the trust instrument and accountings in writing, sending a written demand, then negotiating or mediating. If that fails, the matter goes to court.

Court involvement can come up during administration. ACTEC notes that disputes among beneficiaries, family members or creditors can lead to court involvement during estate administration.

Florida sets short clocks, so don’t assume time is unlimited. For a matter adequately disclosed in a trust disclosure document, a beneficiary must start a proceeding within six months after receiving that document or a limitation notice, whichever is later, under the limitations statute. A contest of a revocable trust is barred if not commenced within the earlier of the time provided in chapter 95 or six months after the trustee sends the person a copy of the trust instrument and a notice of the trust’s existence, the trustee’s name and address, and the time allowed for commencing a proceeding, under a separate statute.

Some matters end by agreement. Contested matters move through litigation.

Does a Trust Shield Assets From Lawsuits?

No, putting assets in a trust does not make a person immune from every claim. The answer depends on the type of trust and who created it.

For a revocable trust, Florida law says the property is subject to the settlor’s creditors during the settlor’s lifetime, to the extent that property would not otherwise be exempt if owned directly. For an irrevocable trust, a creditor or assignee of the settlor may reach the maximum amount that can be distributed to or for the settlor’s benefit, subject to the limit for trusts with more than one settlor and the tax-payment rule, under the creditor rules.

Asset protection is a separate question from suing a trust. Timing of transfers and the terms of the trust both matter. This section covers general principles only.

Talking Through a Trust Dispute With a Florida Trust Litigation Attorney

Maybe you noticed a report that doesn’t add up. Maybe a distribution looks wrong, or a trustee has gone quiet. Many readers are acting for a parent or sibling, not for themselves.

At this stage, a few decisions matter. Request the trust instrument and any accountings in writing. Write down the dates of any notices you received, because the six-month clocks can run from them. Decide whether the trust document needs a careful review before you respond.

Trust Counsel, PL is in Coral Gables, Florida. Leslie V. Marenco, one of the firm’s lawyers, is responsible for this page. The firm’s other lawyer on the page is Tanya Vega.

Can a trustee be personally sued in Florida? Section 736.0802(1) provides that, as between a trustee and the beneficiaries, a trustee shall administer the trust solely in the interests of the beneficiaries.

Your first consultation is free, confidential, and carries no obligation to continue. Call (305) 707-7126 or schedule online to talk through your situation.