Trust administration guidance for trustees and beneficiaries in Florida

Trust administration is the work of managing a trust and passing its property to the people it names, under the trust’s terms. It usually starts when the person who created the trust (the settlor) dies or becomes incapacitated. This guide explains what trust administration involves, what a successor trustee must do, and when to contact a trust administration law firm in Florida.

What Trust Administration Means Under Florida Law

Trust administration is the process of managing trust property, paying the trust’s bills and distributing what remains. The Florida Trust Code applies to express trusts, whether charitable or noncharitable (§ 736.0102). Once a trustee accepts the role, the trustee must act in good faith, follow the trust’s terms and serve the beneficiaries’ interests (§ 736.0801).

A will often leads to a court case called probate. In that case, a personal representative (often called an executor) manages the estate. Trust administration usually runs on the trust’s terms instead. Assets titled in the trust generally avoid probate. Assets left outside the trust may still need a probate case.

Who This Service Is For

Trust administration matters most to people who hold a role in a trust after a death or incapacity. That includes:

• Successor trustees named in the trust document who must step in.
• Beneficiaries and heirs who need to know their rights to information and distributions.
• Co-trustees who must divide duties among themselves.
• Personal representatives whose estate and trust must be handled together.

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

What Trust Administration Covers

Trust administration covers the full set of duties from start to finish. Typical work includes:

• Reviewing the trust document, amendments and governing terms.
• Identifying and listing trust assets, such as real estate, bank and brokerage accounts, business interests and personal property.
• Giving beneficiaries required notices and information.
• Paying valid debts, final expenses and taxes.
• Retitling property and making distributions under the trust terms.
• Keeping records, providing accountings and closing the trust.

On notices, the trustee must act within 60 days after accepting the trust. The notice gives the trustee’s full name and address and says that the fiduciary lawyer-client privilege applies (§ 736.0813). For an irrevocable trust, the trustee generally must account to each qualified beneficiary at least once a year and when the trust ends or the trustee changes (§ 736.0813).

How the Process Works, Step by Step

The first step is deciding whether to accept the role. Most steps follow in order, though the sequence can shift with the facts of each trust.

1. Gather documents. Collect the death certificate, the trust document, any amendments, and lists of known assets and debts.
2. Decide on the role. A named trustee accepts by following the method in the trust, or by acting as trustee, such as accepting trust property (§ 736.0701). A trustee who does not accept within a reasonable time is deemed to have declined. A person can also act to protect trust property without accepting, but must send a written declining statement to a qualified beneficiary within a reasonable time after acting (§ 736.0701).
3. Secure assets. Protect accounts and property and notify financial institutions.
4. Send notices. Give beneficiaries the required notices within the statutory time limits.
5. Handle claims. Address creditor claims under the rules for the estate.
6. Pay and distribute. Pay debts and taxes, then distribute property according to the trust.
7. Account and close. Provide the final accounting and close the trust.

The timeline depends on the facts of the trust, the assets and any disputes.

Trustee Compensation and the Cost of Administration

A trustee is entitled to reasonable compensation when the trust does not set the pay (§ 736.0708). If the trust does set compensation, the trustee gets what the trust specifies. A court may allow more or less in certain cases, such as when the trustee’s duties differ a lot from what the settlor expected (§ 736.0708).

An attorney serving as trustee, or a person related to that attorney, is not entitled to trustee pay in some cases. This applies when the attorney prepared or supervised the trust that named them, unless the statute’s conditions are met, including written disclosures to the settlor before signing (§ 736.0708).

Timing Rules and Deadlines to Know

Florida law sets several deadlines, and each one starts from a specific event.

• Trustee notices: 60 days after accepting the trust, or after learning an irrevocable trust exists (§ 736.0813).
• Creditor claims: Claims against a decedent’s estate bind the estate only if filed in the probate case by the later of 3 months after first publication of the notice to creditors, or 30 days after service on a creditor who must be served (§ 733.702).
• Notice publication: The notice to creditors runs once a week for 2 consecutive weeks in a county newspaper (§ 733.2121).
• Beneficiary claims: Under § 736.1008, the general chapter 95 limitations period applies except as provided in subsection (2). For a matter adequately disclosed in a trust disclosure document, a beneficiary’s claim is barred unless suit is filed within 6 months after receiving that document or a limitation notice.
• Federal estate tax return: Returns made under section 6018(a) (relating to estate taxes) shall be filed within 9 months after the date of the decedent’s death (Internal Revenue Code, section 6075).

Acting early helps you meet these dates. Late steps can cost time and lead to disputes.

Why Trust Counsel, PL

Trust Counsel, PL is a trusts and estates practice in Coral Gables, Florida. The firm’s only office is in Coral Gables. We serve clients in Doral, Kendall, Pinecrest, Key Biscayne, Aventura, Fort Lauderdale, Boca Raton and West Palm Beach.

The firm focuses on probate litigation, trust litigation, trust administration, estate tax planning, business succession, asset protection, guardianship and estate planning. It represents beneficiaries, heirs and fiduciaries in probate and trust disputes.

Leslie V. Marenco is the attorney responsible for this page. The practice has support staff, including assistants and office staff, who help with paperwork and document collection. The firm may refer a matter to another lawyer or firm when that fits the client’s needs.

Common Questions About Trust Administration in Florida

Talk With a Coral Gables Trust Administration Attorney About Your Trust

If a family member has died and a trust names you successor trustee, you may face deadlines soon. Book a free strategy call through our contact page or call (305) 707-7126. The first consultation is free, confidential and carries no obligation to continue.