TRUST ADMINISTRATION

Trust administration usually refers to administration of a revocable trust during the period that begins with the death of the settlor and ends on the final distribution of trust assets outright or to continuing trusts created under the trust agreement. We can advise a trustee of his or her duties and how to administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries.

Florida law outlines the duties of a Trustee as follows:

• Duty to Administer the Trust - A trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries.

• Duty of Impartiality - A trustee shall act impartially in administering the trust property, giving due regard to the beneficiaries' respective interests.

• Control and Protection of Trust Property - A trustee shall take reasonable steps to take control of and protect the trust property.

• Prudent Administration - A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.

• Expenses of Administration - In administering a trust, a trustee shall only incur expenses that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.

• Duty Not to Comingle Assets - A trustee must keep the trust assets separate and apart from the property of the trustee or third parties. 

• Duty to Inform and Account - A trustee shall provide a trust accounting, as set forth in s. 736.08135, from the date of the last accounting or, if none, from the date on which the trustee became accountable, to each qualified beneficiary at least annually and on termination of the trust.

• Duty of Loyalty - As between a trustee and the beneficiaries, a trustee shall administer the trust solely in the interests of the beneficiaries. Self-dealing is not permitted. If a trustee places himself or herself in a position hostile towards the beneficiaries, the trustee must resign.