Trust Litigation Attorney in Miami, Florida | Law Offices of Albert Goodwin

Trust litigation encompasses the legal disputes that arise over the creation, administration, interpretation, and termination of trusts. In Florida, trusts are governed primarily by the Florida Trust Code, codified in Chapter 736 of the Florida Statutes. When disagreements arise among beneficiaries, trustees, and other interested parties, trust litigation may be the only avenue to protect your rights and ensure that the trust is administered according to the settlor's intent and the requirements of Florida law.

At the Law Offices of Albert Goodwin, PA, we represent beneficiaries, trustees, and other interested parties in trust litigation matters throughout the state of Florida. Whether you are challenging a trustee's conduct, seeking to enforce your rights as a beneficiary, or defending against claims brought by others, our firm provides the knowledgeable legal guidance you need.

Overview of the Florida Trust Code (Chapter 736)

The Florida Trust Code, found in Chapter 736 of the Florida Statutes, provides the comprehensive legal framework governing trust creation, administration, modification, and termination in Florida. Enacted in 2007, the Florida Trust Code was modeled after the Uniform Trust Code and replaced much of the prior trust law that had developed through case law and scattered statutory provisions.

Chapter 736 addresses a wide range of topics critical to trust litigation, including the duties and powers of trustees, the rights of beneficiaries, the rules governing trust modification and termination, and the remedies available when a trustee breaches their obligations. Understanding these statutory provisions is essential to successfully navigating any trust dispute in Florida.

Key provisions of the Florida Trust Code that frequently arise in trust litigation include:

F.S. § 736.0201 – Requirements for the creation of a valid trust
F.S. § 736.0402 – Requirements for trust creation, including the settlor's capacity and intent
F.S. § 736.0404 – Trust purposes, requiring that a trust be created for a lawful purpose
F.S. § 736.0706 – Removal of a trustee
F.S. § 736.0802 – Duty of loyalty owed by the trustee
F.S. § 736.0803 – Impartiality in dealing with beneficiaries
F.S. § 736.08135 – Trust accountings and the trustee's duty to inform and account
F.S. § 736.1001 – Remedies for breach of trust

Common Types of Trust Disputes in Florida

Trust disputes can arise from a variety of circumstances. Some of the most common types of trust litigation matters we handle include:

Trust Contests

A trust contest is a legal challenge to the validity of a trust instrument itself. Like will contests in estate litigation, trust contests are typically brought on grounds such as lack of capacity, undue influence, fraud, duress, or failure to comply with the legal formalities required for trust creation. Under Florida law, a trust is void if it was procured by fraud, duress, mistake, or undue influence. A person who lacked the mental capacity to understand the nature and effect of creating a trust likewise cannot create a valid trust instrument.

Trust contests must be brought by an interested party who has standing, which generally includes beneficiaries, heirs, and other persons whose rights would be affected by the trust's validity. The timeframe for bringing a trust contest can be limited, so it is important to consult with an attorney promptly if you believe a trust may be invalid.

Breach of Trust Claims

A breach of trust occurs when a trustee violates any duty owed to the beneficiaries or to the trust itself. Florida law imposes numerous duties on trustees, including the duty of loyalty (F.S. § 736.0802), the duty of impartiality (F.S. § 736.0803), the duty to administer the trust in good faith (F.S. § 736.0801), and the duty to act as a prudent investor (F.S. § 736.0901). When a trustee fails to meet these obligations, beneficiaries may bring a breach of trust action seeking remedies including surcharge, removal, and damages.

Common examples of trustee misconduct that give rise to breach of trust claims include self-dealing, mismanagement of trust assets, failure to make required distributions, commingling trust funds with personal funds, failure to diversify investments, and failure to provide adequate accountings to beneficiaries.

Trust Accounting Disputes

Under Florida law, trustees have a duty to keep beneficiaries reasonably informed about the administration of the trust and to provide trust accountings upon request. F.S. § 736.08135 sets forth the specific requirements for trust accountings, including the information that must be disclosed and the timeframes for providing accountings.

When a trustee fails to provide adequate accountings, beneficiaries may petition the court to compel an accounting. Trust accounting disputes frequently reveal underlying problems with trust administration, such as unauthorized transactions, unexplained losses, excessive fees, or misappropriation of trust assets. A thorough review of trust accountings by an experienced attorney can uncover discrepancies that warrant further legal action.

Disputes Over Trust Interpretation

Ambiguities in trust language can lead to disagreements among beneficiaries and trustees regarding the settlor's intent. Courts may be called upon to construe the terms of a trust, determine the scope of a trustee's discretion, or resolve conflicting provisions within the trust instrument. Florida courts will look to the plain language of the trust, the circumstances surrounding its creation, and the settlor's overall estate plan when interpreting trust provisions.

Trustee Removal Under F.S. § 736.0706

One of the most significant remedies available in trust litigation is the removal of a trustee. Under F.S. § 736.0706, a Florida court may remove a trustee if:

The trustee has committed a serious breach of trust
Lack of cooperation among co-trustees substantially impairs the administration of the trust
Due to unfitness, unwillingness, or persistent failure to administer the trust effectively, the court determines that removal best serves the interests of the beneficiaries
There has been a substantial change of circumstances, and the court finds that removal best serves the interests of all beneficiaries, is not inconsistent with a material purpose of the trust, and a suitable co-trustee or successor trustee is available

The standard for trustee removal in Florida is whether removal serves the best interests of the beneficiaries. Courts do not remove trustees lightly, but when a trustee has engaged in self-dealing, failed to account for trust assets, acted in bad faith, or demonstrated an inability to administer the trust properly, removal may be warranted. A petition for trustee removal may be brought by a co-trustee, a beneficiary, or any other interested party.

It is important to note that mere disagreement between a beneficiary and trustee regarding investment decisions or distribution timing does not automatically warrant removal. The petitioner must demonstrate that the trustee's conduct rises to the level contemplated by the statute. However, a pattern of conduct showing disregard for beneficiary interests, even if no single act constitutes a serious breach, may cumulatively justify removal.

Trust Modification and Termination

Florida law provides several mechanisms for modifying or terminating a trust. These provisions recognize that circumstances may change after a trust is created, and that rigid adherence to the original trust terms may not always serve the settlor's intent or the beneficiaries' interests.

Under F.S. § 736.04113, a court may modify the terms of an irrevocable trust if compliance with the existing terms is not in the best interests of the beneficiaries due to circumstances not anticipated by the settlor. The modification must be consistent with the settlor's probable intent. Additionally, under F.S. § 736.04115, a court may modify a trust to achieve the settlor's tax objectives in a manner that is not contrary to the settlor's probable intent.

F.S. § 736.0412 allows for the modification or termination of a noncharitable irrevocable trust by consent of the settlor and all beneficiaries, even if the modification or termination is inconsistent with a material purpose of the trust. When the settlor is deceased or lacks capacity, all beneficiaries may consent to modification or termination if the court concludes that the modification or termination is not inconsistent with a material purpose of the trust.

Trust termination may also occur when a trust becomes uneconomical to administer. Under F.S. § 736.0414, if the total value of the trust property is less than $50,000 and the trustee concludes that the value of the trust property is insufficient to justify the cost of administration, the trustee may terminate the trust after giving notice to the qualified beneficiaries.

Beneficiary Rights in Florida Trust Litigation

Florida law affords trust beneficiaries significant rights, including:

Right to information – Beneficiaries have the right to be kept reasonably informed about the trust and its administration, including the right to request and receive trust accountings
Right to distributions – Beneficiaries are entitled to receive distributions as provided by the terms of the trust
Right to enforce the trust – Beneficiaries may bring legal action to compel the trustee to perform their duties, to enjoin the trustee from committing a breach of trust, or to redress a breach of trust that has already occurred
Right to a copy of the trust – Qualified beneficiaries are entitled to receive a copy of the trust instrument upon request
Right to notice – Beneficiaries are entitled to notice of certain trust events, including the trustee's acceptance of the trust, changes in the trustee's compensation, and proposed trust modifications

When a trustee fails to respect these rights, beneficiaries may seek judicial intervention. Florida courts take beneficiary rights seriously and will hold trustees accountable for failing to fulfill their obligations under the trust instrument and the Florida Trust Code.

Remedies Available in Florida Trust Litigation

The Florida Trust Code provides a comprehensive set of remedies for trust disputes. Under F.S. § 736.1001, a court may take various actions to remedy a breach of trust, including:

Surcharge – Compelling the trustee to pay money damages to restore the trust to the position it would have been in had the breach not occurred
Disgorgement – Requiring the trustee to return any profit gained through the breach of trust
Injunctive relief – Ordering the trustee to take specific actions or refrain from specific conduct
Removal – Removing the trustee and appointing a successor trustee
Voiding transactions – Setting aside transactions that resulted from the trustee's breach of duty
Reduction or denial of compensation – Reducing or eliminating the trustee's compensation as a consequence of their misconduct
Appointment of a receiver – In extreme cases, the court may appoint a receiver to take control of trust assets

Additionally, the prevailing party in trust litigation may be entitled to recover their attorneys' fees and costs from the trust or from the opposing party, depending on the circumstances. F.S. § 736.1004 provides that the court may award costs and attorneys' fees as in chancery actions.

Statute of Limitations for Trust Claims in Florida

The timing of a trust litigation claim is critical. Florida law imposes specific limitations periods that can bar claims if not brought within the required timeframe. Under F.S. § 736.1008, a beneficiary's claim against a trustee for breach of trust is barred if not commenced within the earlier of:

Six months after the beneficiary received a trust disclosure document that adequately disclosed the facts constituting the claim, or
Four years after the date the beneficiary discovered, or reasonably should have discovered, the facts constituting the claim

These limitations periods underscore the importance of acting promptly when you suspect a trustee has breached their duties or when you receive trust accountings that raise questions. Delay can result in the permanent loss of your right to bring a claim.

The Trust Litigation Process in Florida

Trust litigation in Florida generally proceeds through the circuit court's probate division. The process typically involves the following stages:

Filing a petition or complaint – The aggrieved party files a petition or complaint with the court, setting forth the factual and legal basis for the claim
Service and response – The opposing party is served with the petition and given the opportunity to respond
Discovery – Both sides exchange relevant documents, take depositions, and gather evidence to support their positions
Mediation – Florida courts frequently require the parties to attempt mediation before proceeding to trial
Trial – If mediation is unsuccessful, the case proceeds to trial, where a judge will hear evidence and render a decision
Appeal – Either party may appeal the court's decision to the appropriate district court of appeal

Trust litigation can be complex and emotionally challenging, particularly when family relationships are involved. Having an experienced attorney guide you through the process can make a significant difference in the outcome of your case.

Contact a Florida Trust Litigation Attorney

If you are involved in a trust dispute in Florida, the Law Offices of Albert Goodwin, PA can help. Whether you are a beneficiary seeking to protect your rights, a trustee defending against allegations of misconduct, or an interested party with concerns about trust administration, we have the experience and knowledge to represent your interests effectively.

We handle trust litigation matters including trust contests, trustee removal petitions, breach of trust claims, trust accounting disputes, trust modification and termination proceedings, and beneficiary rights enforcement throughout Florida.

Call us at 786-522-1411 or email us at [email protected] to schedule a consultation with an experienced Florida trust litigation attorney. We are here to help you navigate the complexities of trust disputes and fight for the outcome you deserve.