Being named as trustee can sound straightforward: follow the trust, manage the assets, and make distributions to the beneficiaries. In practice, the role comes with ongoing responsibilities that can require careful judgment, organization, and communication.
A trustee is a fiduciary. That means the person serving is not simply managing property as they see fit. Florida law requires a trustee to administer the trust in good faith, according to its terms and purposes and in the interests of the beneficiaries.
Understanding a few of the core duties can help a trustee recognize what the role actually requires.
Start With the Trust Itself
One of a trustee’s first responsibilities is to understand the document that created the trust.
The trust may contain instructions about distributions, investments, property management, beneficiary needs, or when and how the trust should eventually terminate. A trustee generally must administer the trust according to those terms rather than relying on personal preferences about what seems fair or appropriate.
That makes reading and understanding the trust an important first step before making significant decisions.
Protect and Manage Trust Property
A trustee is responsible for taking reasonable steps to control and protect trust property. Florida law also requires prudent administration, including the exercise of reasonable care, skill, and caution.
Depending on the trust, that may involve bank and investment accounts, real estate, business interests, personal property, or other assets. The trustee may need to identify what the trust owns, safeguard those assets, manage expenses, and make appropriate financial decisions.
The trustee must also keep trust property separate from personal property and maintain clear and accurate records of the trust’s administration.
Put the Beneficiaries’ Interests First
Trustees have a duty of loyalty. In Florida, that generally requires administering the trust solely in the interests of the beneficiaries. A trustee should therefore be particularly careful about transactions that could create a personal benefit or conflict of interest.
If a trust has multiple beneficiaries, another challenge can arise: their interests may not always be the same. Florida law requires a trustee to act impartially, giving appropriate consideration to the beneficiaries’ respective interests.
This does not necessarily mean every beneficiary receives identical treatment. It means the trustee’s decisions should be guided by the trust and the trustee’s fiduciary responsibilities rather than favoritism or family dynamics.
Keep Beneficiaries Informed
Trust administration should not happen in a vacuum. Florida trustees have duties to keep qualified beneficiaries reasonably informed about the trust and its administration, and certain circumstances require notices, information, and accountings.
Good record keeping and communication often go hand in hand. Keeping documentation of trust assets, expenses, distributions, and important decisions can make it much easier to provide beneficiaries with required information and explain how the trust has been administered.
Know When You Need Help
Serving as trustee does not mean personally handling every legal, tax, investment, or accounting issue that arises. Some trusts are relatively simple, while others involve complicated assets, difficult distribution decisions, tax matters, or disagreements among beneficiaries.
The important point is recognizing the responsibility that comes with the role. A trustee who is uncertain about an obligation should consider seeking appropriate professional guidance before making a decision that may be difficult to undo.
Taking the Role Seriously From the Beginning
Trust administration involves more than distributing assets. Trustees may be responsible for protecting property, maintaining records, communicating with beneficiaries, following the trust’s instructions, and making decisions that affect several people at once.
If you have been named as trustee or have questions about administering a trust in Florida, Eastham Law Offices can help you understand your responsibilities and the next steps involved. Call our office at 561-395-6800, or reach out through our website to learn more.