Fiduciary Accounts in Florida
A fiduciary account is a financial account managed by a fiduciary on behalf of a beneficiary or principal. The fiduciary has a legal duty of loyalty, care, and accountability in managing the funds, and must keep fiduciary funds strictly separate from personal funds.
Types of Fiduciary Accounts
- Trust accounts: Managed by trustees for trust beneficiaries
- Estate accounts: Managed by personal representatives during probate
- Guardian accounts: Managed by court-appointed guardians for protected persons
- Attorney trust accounts: IOTA accounts holding client funds
- Escrow accounts: Held by title companies and brokers during transactions
Management Rules
- No commingling: Fiduciary funds must never be mixed with personal funds
- Accurate records: All transactions must be documented
- Prudent investment: Trust funds must be invested under the Prudent Investor Act
- No self-dealing: Fiduciary cannot use funds for personal benefit
- Regular accounting: Periodic reports to beneficiaries or the court
Consequences of Breach
Fiduciary mismanagement can result in personal liability, removal, surcharge, criminal prosecution, and regulatory discipline. The fiduciary bears the burden of proving proper management.
Related Terms
- Escrow — A common type of fiduciary account
- Executor — A fiduciary managing estate accounts
- Estate Administration — Process requiring fiduciary accounts
Barnes Walker Trust Administration
Barnes Walker's attorneys advise fiduciaries on proper account management and defend against breach of fiduciary duty claims in Florida courts. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC