Naming a Trustee in Florida: Legal Duties and Best Practices

Choosing a trustee is one of the most important decisions you’ll make when creating a trust. The person or institution you appoint will be responsible for carrying out your wishes and managing assets held in trust. In Florida, this role comes with legal obligations and potential liability. Knowing what to expect helps you appoint the right person and avoid future complications.

Understanding the Role of a Trustee

A trustee is the fiduciary responsible for managing and distributing trust property according to the terms of your trust. In Florida, this role begins when the grantor becomes incapacitated or passes away, depending on how the trust is structured. The trustee must act in the best interests of the beneficiaries at all times. This includes financial management, timely communication, and legal compliance.

Key duties of a trustee in Florida include:

• Administering the trust by its written terms

• Acting impartially among all beneficiaries

• Keeping accurate and detailed records

• Avoiding self-dealing or conflicts of interest

• Filing taxes and distributing assets appropriately

Legal Requirements for Florida Trustees

Florida law imposes clear standards of behavior on trustees. These are found in Chapter 736 of the Florida Statutes, also known as the Florida Trust Code. A trustee must follow the prudent investor rule, act loyally, and administer the trust efficiently. Failing to meet these requirements may lead to legal claims from beneficiaries or removal by the court.

Trustees are legally required to:

• Provide annual accountings to beneficiaries

• Keep beneficiaries reasonably informed

• Preserve and protect trust assets from unnecessary loss

• Act with care, skill, and caution

• Comply with the trust’s terms and Florida law

Who Can Serve as Trustee in Florida?

In Florida, any legally competent adult can serve as trustee, and there is no residency requirement. However, appointing someone with financial or legal experience is often wise. You can name a family member, friend, professional fiduciary, or a corporate trustee such as a bank or trust company. Each option comes with its own pros and cons.

Common choices for trustees include:

• Adult children who are financially responsible

• Trusted friends with no conflicts of interest

• Professional fiduciaries with legal and tax knowledge

• Corporate trustees offering stability and experience

Successor Trustees and Contingency Planning

Even if you have a trusted first choice, life circumstances can change. That’s why your Florida trust should include one or more successor trustees. If your original appointee cannot serve due to incapacity, resignation, or death, a successor steps in automatically. This ensures your trust remains enforceable and avoids unnecessary court involvement.

When naming backup trustees, consider:

• Age and long-term availability of each candidate

• Willingness to accept the role if called upon

• Potential for conflicts with other beneficiaries

• Professional support available to help them

Potential Pitfalls to Avoid When Naming a Trustee

Appointing the wrong trustee can result in delays, mismanagement, or even litigation. A trustee must be trustworthy and financially competent—but also emotionally equipped to handle family dynamics. It’s not always best to name the oldest child or closest relative. Objectivity and attention to detail are often more important than familiarity.

Avoid these common trustee mistakes:

• Choosing someone who lacks time or organization

• Appointing co-trustees who don’t get along

• Overlooking the importance of a backup

• Failing to communicate your choice to the family

• Not updating your trust if relationships change

Best Practices for Ensuring Smooth Administration

You can help your trustee succeed by giving them the right tools and information ahead of time. A well-drafted trust document should clearly outline their duties and powers. Providing a letter of instruction and organizing your financial documents can prevent confusion. You should also consider involving your trustee in the planning process while you’re still alive.

Helpful planning tips include:

• Reviewing your trust every few years with your attorney

• Keeping updated contact information for all beneficiaries

• Discussing your goals and intentions with the trustee

• Including guidance on how to handle disputes or questions

• Naming a professional co-trustee for complex estates

When a Professional Trustee Might Be a Better Fit

In some cases, the best trustee isn’t a relative or friend—it’s a neutral third party. Professional or corporate trustees offer consistent administration, objectivity, and often have financial or legal expertise. They’re particularly helpful for large estates, blended families, or long-term trusts. While there are fees involved, they may help avoid more costly issues later.

Consider a professional trustee if:

• Your estate includes complex or high-value assets

• You expect conflicts among beneficiaries

• You want continuity for a long-term trust

• Your chosen family members lack time or experience

Call Us for Guidance Before Naming Your Trustee

Naming a trustee is more than a formality, it sets the tone for how your wishes will be carried out. Taking the time to choose the right person and plan for contingencies helps avoid disputes and delays. When you’re ready to start or update your Florida trust, our team is here to assist you every step of the way.

Naming a Trustee in Florida: Frequently Asked Questions

What legal duties does a trustee have in Florida?

Trustees in Florida must follow the Florida Trust Code and act in the best interests of the beneficiaries. This includes managing the trust according to its terms, keeping accurate records, and avoiding any conflicts of interest. They must also provide regular reports and communicate transparently with all parties. Violations can lead to removal or legal action.

Can I name more than one trustee?

Yes, co-trustees can be named, but this decision should be made carefully. While it allows shared responsibility, it can also cause delays or disagreements if trustees don’t work well together. Florida law requires co-trustees to act jointly unless the trust specifies otherwise. We often recommend naming a single trustee with clear successors to simplify administration.

What qualities should I look for in a trustee?

The best trustee is honest, organized, and capable of managing financial matters. You should also consider emotional maturity, availability, and the ability to remain impartial. While experience with legal or tax matters is a plus, your trustee can also seek professional help. Ultimately, choose someone who understands your wishes and respects your beneficiaries.

How do I update my trustee designation?

You can update your trustee by amending your revocable trust or creating a restatement. In Florida, these updates must follow proper legal formalities to be valid. We recommend working with a trust attorney to ensure your changes are properly executed. Keeping your documents current ensures your wishes are honored without dispute.

What happens if a trustee resigns or becomes incapacitated?

If your named trustee can no longer serve, the successor trustee you’ve designated will step in. If no successor is named, Florida law allows beneficiaries or the court to appoint a suitable replacement. This underscores the importance of naming backups in your trust document. A smooth transition requires thoughtful planning.

Do trustees get paid in Florida?

Yes, trustees are entitled to reasonable compensation for their services unless your trust states otherwise. The amount depends on the complexity and time involved. Professional trustees often have a set fee schedule, while individuals may be reimbursed for their time and expenses. We can help structure compensation terms in your trust clearly.

Can a trustee also be a beneficiary?

Yes, it’s common for a trustee to also be a beneficiary, especially in family trusts. Florida law permits this arrangement, but the trustee must still act impartially and avoid favoring their own interests. Transparency and clear documentation help prevent conflicts. It’s important to choose someone who can separate personal gain from legal duty.

What should I tell my trustee before I pass away?

You should inform them that they’ve been named and explain your expectations. Sharing the location of important documents and contact details for your attorney can help streamline future administration. While they don’t need to take action right away, early communication reduces stress later. Some clients also choose to involve the trustee in reviews of the trust terms.

Do I need a Florida-based trustee?

No, your trustee does not need to reside in Florida, but it can be helpful. Having someone local makes it easier to manage real estate or attend court proceedings if needed. Out-of-state trustees may face delays or additional paperwork. We can help you weigh the pros and cons of choosing someone nearby versus someone you trust more who lives elsewhere.