Trustee Duties in Miami, FL | Goodwin Trust Lawyers

A trustee in Florida holds one of the most heavily regulated positions in private law. When you accept the role of trustee — whether for a parent's revocable trust that became irrevocable at death, or as a corporate or successor trustee — you take on enforceable fiduciary duties under the Florida Trust Code, codified in Chapter 736 of the Florida Statutes (principally §§ 736.0801–736.0813). In Miami-Dade County, disputes over those duties are litigated in the Probate Division of the Eleventh Judicial Circuit, and the way these duties play out in front of a local judge is often very different from the textbook summary.

This page is our overview hub for trustee duties. It explains each core obligation, adds practitioner commentary on how Miami-Dade courts actually evaluate trustee conduct, and links to focused pages on the issues that most often turn into litigation. If you have a specific question — selling trust real estate, an overdue accounting, or removing a trustee — follow the internal links below to the dedicated discussion. At the Law Offices of Albert Goodwin, PA, we advise trustees on compliance and represent beneficiaries when a trustee falls short.

How This Page Fits With Our Other Trust Resources

Trustee duties overlap with many related subjects. To keep this page focused on the duties themselves, we cover the adjacent topics separately:

Breach of fiduciary duty and our Miami breach of trust attorney page — what to do once a duty has actually been violated.
Trust and estate accounting and contested accountings — the format, content, and challenge process for accountings.
Beneficiary of a trust rights and general beneficiary rights — the same duties viewed from the beneficiary's side.
Can a trustee sell property? — the loyalty and impartiality rules applied to real estate sales.
How does a trust work? — foundational background for those new to trusts.
Trustee removal and estate litigation — the court process for removing a trustee and recovering losses.

The Duty of Loyalty (F.S. § 736.0802)

The duty of loyalty is the bedrock obligation: a trustee must administer the trust solely in the interests of the beneficiaries. In practice, this is the duty we see violated most often in Miami-Dade disputes, usually in subtle ways — a trustee paying themselves rent below market to live in trust-owned property in Coral Gables, hiring a relative's company for trust services, or steering a sale of a trust condominium to a friend.

Under § 736.0802(2), a transaction affected by a conflict between the trustee's fiduciary and personal interests is voidable by a beneficiary — even if the trustee acted in good faith and the price was fair. This is the point clients most often misunderstand: fairness is not a defense to self-dealing. The transaction survives only if it falls within a statutory exception, such as authorization by the trust instrument, court approval, beneficiary consent after full disclosure, or a transaction that occurred before the person became trustee.

What we see judges in the Eleventh Circuit focus on is disclosure. A trustee who quietly entered into a conflicted transaction has a far weaker position than one who put the conflict in writing, explained the terms, and obtained informed written consent from all qualified beneficiaries beforehand. If you are a trustee considering any transaction where you sit on both sides, document the disclosure first. If you are a beneficiary who discovers an undisclosed conflicted transaction, the voidability remedy is powerful.

The Duty of Impartiality (F.S. § 736.0803)

When a trust has more than one beneficiary, the trustee must act impartially, giving due regard to each beneficiary's respective interest. The classic flashpoint — and a frequent one in South Florida blended-family trusts — is the tension between an income beneficiary (often a surviving second spouse) and the remainder beneficiaries (often children from a prior marriage).

An income beneficiary wants high current yield; the remainder beneficiaries want long-term growth and capital preservation. A trustee who loads the portfolio into no-dividend growth stocks favors the remaindermen; one who buys only high-yield instruments favors the income beneficiary. Impartiality does not mean treating everyone identically — it means balancing competing interests consistently with the settlor's intent expressed in the trust. In contested matters, we frequently see the trustee's lack of a documented investment policy become the central weakness.

The Prudent Investor Rule (F.S. §§ 736.0901–736.0906)

Florida's Prudent Investor Rule requires a trustee to invest and manage trust assets as a prudent investor would, considering the trust's purposes, terms, and distribution requirements. Key points that recur in litigation:

Diversification (§ 736.0903). A trustee must diversify unless special circumstances justify concentration. A very common Miami fact pattern is a trust holding a single concentrated asset — a family business, or a large position in employer stock — that the trustee never diversifies. Unless the trust instrument authorizes the concentration, that inaction can itself be a breach.
Total return / portfolio standard. Performance is judged on the portfolio as a whole and on the reasonableness of the strategy at the time it was adopted, not with hindsight after a single bad investment.
Purpose-driven strategy. A trust funding a surviving spouse's living expenses calls for a different allocation than a dynasty trust meant to grow for grandchildren.
Costs and fees (§ 736.0905). Only costs appropriate and reasonable in relation to the trust's assets and purposes are permitted. Excessive trading, layered advisory fees, and high-cost products can support a surcharge claim.

In our experience, the strongest defense for a trustee accused of imprudent investing is a contemporaneous, written investment policy statement and a record of periodic review. Its absence is often the first thing a beneficiary's counsel highlights.

The Duty to Inform and Account (F.S. §§ 736.0813, 736.08135)

Transparency is non-negotiable. Under § 736.0813, a trustee must keep the qualified beneficiaries reasonably informed. The deadlines that most often trip up Miami trustees are:

60-day notice. Within 60 days after accepting an irrevocable trusteeship — or within 60 days after learning that a formerly revocable trust has become irrevocable (typically at the settlor's death) — the trustee must notify qualified beneficiaries of the trust's existence, the settlor's identity, and the right to request the trust instrument and an accounting.
Copy of the trust. On reasonable request, a qualified beneficiary is entitled to a complete copy of the trust instrument.
Annual accounting. A trustee of an irrevocable trust must provide a trust accounting to each qualified beneficiary at least annually and on termination. Under § 736.08135, the accounting must show the property at the start of the period, all receipts, disbursements, distributions, gains and losses, and the property at the end of the period.

Note the statute of limitations interplay: a properly formatted accounting (or other adequate disclosure) that meets the requirements of § 736.1008 can shorten the window in which a beneficiary may sue. Trustees who account properly protect themselves; beneficiaries should read each accounting carefully and promptly, because limitations periods can begin to run. When a trustee refuses to account, a beneficiary may petition the Eleventh Circuit Probate Division to compel an accounting and, in appropriate cases, seek removal. See our accounting and contested accountings pages for detail.

The Duty of Good Faith Administration (F.S. § 736.0801)

A trustee must administer the trust in good faith, in accordance with its terms and purposes, the interests of the beneficiaries, and the Florida Trust Code. Deliberately stalling distributions, ignoring the trust's terms, or taking actions designed to disadvantage certain beneficiaries all violate this duty and can support liability for breach of trust.

The Duty to Control and Protect Trust Property (F.S. § 736.0809)

A trustee must take reasonable steps to take control of and protect trust property — identify all assets, take title, insure property, collect debts, and guard against loss. For the real estate that is so common in Miami-Dade trusts (homestead, condos, rental property), this means keeping taxes and insurance current, maintaining the property, and ensuring title is correctly held in the name of the trust. Letting a trust property lapse on insurance or fall into disrepair is a textbook breach.

Delegation, Records, and Earmarking (F.S. §§ 736.0807, 736.0810)

Under § 736.0807, a trustee may delegate functions a prudent trustee would delegate — investment management, tax preparation — but must use reasonable care in selecting the agent, defining the scope, and monitoring performance. Proper delegation can insulate the trustee from liability for the agent's conduct; abandoning oversight does not.

Under § 736.0810, the trustee must keep adequate records of every transaction and must keep trust property separate from personal property. Commingling — depositing trust money in a personal account or titling trust assets in the trustee's own name — is among the clearest breaches a court will find, and it badly undermines the trustee's credibility on every other issue in a dispute.

Remedies When a Trustee Breaches a Duty (F.S. § 736.1001 et seq.)

A trustee who breaches a fiduciary duty may be personally liable. Under the remedies provisions of the Code, a court may compel performance, award money damages (surcharge), order restoration of trust property, require the trustee to account for profits, reduce or deny compensation, and remove the trustee under § 736.0706. Beneficiaries commonly file petitions to compel an accounting, to compel distribution, for removal, and for surcharge.

Procedurally, contested trust matters in Miami-Dade are filed in the Probate Division of the Eleventh Judicial Circuit. Venue for trust proceedings is generally governed by § 736.0204, which typically allows filing in the county where the trust has its principal place of administration. Many of these matters are referred to mediation, and Miami-Dade's Probate Division actively encourages settlement — an important strategic reality when deciding whether and how to litigate.

Frequently Asked Questions

Can a trustee be paid in Florida?

Yes. Under F.S. § 736.0708, a trustee is entitled to compensation that is reasonable under the circumstances if the trust does not specify the amount, or to the compensation the trust specifies. Reasonableness depends on factors such as the size and complexity of the trust, the time and skill required, and the results achieved. A trustee should disclose compensation in the accounting; secret or excessive fees frequently become a focus of beneficiary disputes.

How long does a trustee have to distribute trust assets?

The Florida Trust Code does not set a single fixed deadline; the trustee must distribute within a reasonable time consistent with the trust's terms and after addressing creditor claims, taxes, and administration expenses. Many straightforward trusts can be wound up within months, while trusts involving real estate sales, business interests, or tax matters take longer. Unreasonable or self-serving delay can support a petition to compel distribution and a breach claim.

How do I remove a trustee in Miami?

Removal is governed by F.S. § 736.0706. Grounds include a serious breach of trust, persistent failure to administer effectively, unfitness or hostility that impairs administration, or a substantial change of circumstances. A beneficiary files a petition in the Probate Division of the Eleventh Judicial Circuit in Miami-Dade. The court weighs the evidence and the settlor's intent; removal is a serious remedy, so documented breaches — missing accountings, self-dealing, commingling — strengthen the petition. See our trustee removal page.

Does a beneficiary have the right to see the trust and an accounting?

Yes. A qualified beneficiary is generally entitled to a copy of the trust instrument on reasonable request and to at least annual accountings of an irrevocable trust under §§ 736.0813 and 736.08135. If the trustee refuses, the beneficiary may petition to compel both. See beneficiary of a trust rights.

Is a trustee personally liable for a bad investment?

Not automatically. Liability turns on whether the trustee complied with the Prudent Investor Rule — whether the overall strategy was reasonable when adopted, properly diversified, and consistent with the trust's purposes. A loss on a single holding within a prudently managed portfolio generally does not create liability; an imprudent, undiversified, or undisclosed-conflict strategy can.

Speak With a Miami Trust Administration Attorney

Whether you are a trustee seeking to comply with your duties or a beneficiary concerned that a trustee is not, experienced counsel matters. The Law Offices of Albert Goodwin, PA is located at 121 Alhambra Plaza #1000, Coral Gables, FL 33134, and we handle trust administration, trustee-duty compliance, and trust disputes throughout Miami-Dade and the Eleventh Judicial Circuit. Call 786-522-1411 or email [email protected] to schedule a consultation.

This article is provided for general informational purposes about Florida trust law and does not constitute legal advice or create an attorney-client relationship. Trust matters are fact-specific; consult a qualified Florida attorney about your situation. Reviewed by the Law Offices of Albert Goodwin, PA, a Florida estate and trust litigation practice serving Miami-Dade County.