When a loved one passes away or becomes incapacitated, managing their estate can be overwhelming. If they created a trust, the responsibility of managing and distributing trust assets falls on the trustee or successor trustee -a person or institution appointed to carry out the terms of the trust. In Florida, this process is known as trust administration.
Key Steps in Florida Trust Administration
- Identifying and Securing Trust Assets
The trustee must locate and secure all trust-owned assets.
- Notifying Beneficiaries and Interested Parties
Florida law requires the trustee to notify all beneficiaries of the trust’s existence and their rights.
- Paying Debts and Expenses
Before any distribution to beneficiaries, the trustee must pay:
- Outstanding debts
- Final expenses (e.g., funeral costs)
- Income and estate taxes, if applicable
- Managing Trust Property
Trustees are fiduciaries, which means they must manage trust property prudently.
- Distributing Trust Assets
After all obligations are met, the trustee distributes assets according to the trust’s terms. Distributions may be made outright or overtime, depending on the trust’s instructions.
- Providing a Trust Accounting
Trustees typically must provide an accounting to beneficiaries, showing all financial transactions and current trust balances.
Why Legal Guidance Is Essential
Even though a trust avoids probate, administering it properly still involves:
- Complex legal and tax issues
- Strict deadlines
- Detailed paperwork and reporting
An experienced Florida trust attorney can guide trustees through the process, ensure compliance with Florida law, and help prevent costly mistakes or disputes among beneficiaries.
Key Takeaways
Trust administration in Florida is a serious responsibility. Whether you are a trustee who needs help navigating your duties, or a beneficiary seeking transparency, legal guidance can make the process smoother and more secure.
