How to Sue a Trustee for Breach of Fiduciary Duty in Florida

Trusts are designed to protect and manage assets for the benefit of others, but when a trustee fails to fulfill their obligations, the consequences can be serious. In Florida, trustees owe strict legal duties to beneficiaries. If those duties are violated, beneficiaries have the right to take action—including filing a lawsuit for breach of fiduciary duty. Understanding what this means, how to recognize misconduct, and the process for holding a trustee accountable is essential for protecting your interests.

What Is a Trustee’s Fiduciary Duty

A trustee is the person or institution responsible for managing trust assets according to the terms of the trust and Florida law. The trustee is held to a fiduciary standard, meaning they must act with the highest degree of loyalty, honesty, and care toward the beneficiaries. Florida Statutes Chapter 736 outlines several key fiduciary duties, including:

• Duty of loyalty: The trustee must act solely in the best interest of the beneficiaries and avoid any conflict between personal interests and trust matters.
• Duty of prudence: Trustees must manage and invest trust assets as a prudent person would, using reasonable care, skill, and caution.
• Duty to inform and account: Trustees must keep beneficiaries informed about trust activity, respond to reasonable requests for information, and provide annual accountings.
• Duty of impartiality: When multiple beneficiaries exist, the trustee must treat them fairly and avoid favoritism.
• Duty to comply with the trust terms: Trustees must follow the specific instructions written in the trust document unless a court orders otherwise.

Examples of Trustee Misconduct

A breach of fiduciary duty occurs when a trustee fails to act in accordance with these obligations, either through intentional misconduct or negligence. Common examples include:

• Using trust funds for personal expenses or gain
• Failing to provide accountings or financial transparency
• Improperly investing trust assets or taking unnecessary risks
• Favoring one beneficiary over another without justification
• Selling or transferring trust property below fair market value
• Commingling trust assets with personal funds
• Ignoring the terms of the trust or delaying required distributions

Steps to Take Before Filing a Lawsuit

Lawsuits against trustees should not be filed hastily. Florida courts expect beneficiaries to take reasonable steps to resolve disputes before resorting to litigation. Recommended steps include:

• Request information in writing: Ask the trustee for an accounting, copies of financial records, or an explanation of decisions.
• Document potential violations: Keep written records of correspondence, transactions, or missing funds that may show mismanagement.
• Consult an attorney: A trust litigation attorney can review the trust document, evaluate the evidence, and determine whether a legal breach has occurred.
• Consider mediation: Florida encourages alternative dispute resolution, which can help preserve trust assets and resolve issues without the cost of a full trial.

Filing a Lawsuit for Breach of Fiduciary Duty

If informal efforts fail, beneficiaries may file a petition in probate or civil court alleging breach of fiduciary duty under Florida law. The lawsuit generally seeks one or more of the following remedies:

• Removal of the trustee: The court may remove a trustee who has acted improperly or refuses to perform their duties.
• Accounting and surcharge: The court can compel a full financial accounting and require the trustee to repay losses caused by their actions.
• Return of property or profits: If the trustee personally benefited from the breach, they can be ordered to return funds or assets to the trust.
• Injunctions or restrictions: Courts may limit a trustee’s powers or freeze assets during ongoing litigation.
• Attorney’s fees and costs: In some cases, the prevailing party may recover fees under Florida’s trust code or by court order.

Proving breach of fiduciary duty requires evidence that (1) a fiduciary relationship existed, (2) the trustee breached that duty, and (3) the breach caused financial harm to the trust or beneficiaries. Because these claims often involve complex financial records and legal standards, expert testimony may be necessary.

Time Limits for Bringing a Claim

Florida law imposes deadlines for filing claims against a trustee. Generally, a beneficiary must bring a lawsuit within four years of when the breach was discovered or reasonably should have been discovered. However, if the trustee provides a valid accounting and notice under Florida Statute §736.1008, beneficiaries may have as little as six months to object. Acting promptly is critical to preserve your rights.

How Barnes Walker Can Help

At Barnes Walker, our attorneys represent beneficiaries and fiduciaries in complex trust disputes throughout Florida. We help clients identify trustee misconduct, pursue legal remedies, and protect assets from further loss. Whether through negotiation, mediation, or litigation, our goal is to resolve trust conflicts efficiently while upholding the rights of those entitled to the trust’s benefits.

If you suspect a trustee has breached their fiduciary duty, contact Barnes Walker today to schedule a confidential consultation. Our experienced team can help you evaluate your options and take appropriate action under Florida law.

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Sources

• Florida Statutes Chapter 736 — The Florida Trust Code
• Florida Statute §736.0802 — Duty of Loyalty
• Florida Statute §736.0813 — Duty to Inform and Account
• The Florida Bar Journal — Trustee Liability Under the Florida Trust Code
• Zoecklein Law — Trustee Breach and Beneficiary Remedies
• Super Lawyers — Suing a Trustee for Breach of Fiduciary Duty in Florida