Trustee Duty of Loyalty in Florida
The duty of loyalty is the cornerstone of Florida trust administration. Under Section 736.0802, a trustee must administer the trust solely in the beneficiaries' interests, prohibiting self-dealing and conflicts of interest.
What the Duty Requires
- Administer the trust solely for the beneficiaries' benefit
- Avoid all conflicts between personal and trust interests
- Refrain from self-dealing transactions
- Not use trust property for personal benefit
- Not borrow from the trust
- Disclose all potential conflicts to beneficiaries
Exceptions to the Self-Dealing Prohibition
- Trust document expressly authorizes the transaction
- All qualified beneficiaries consent after full disclosure
- Court approves the transaction
- Routine transactions at fair market terms
Remedies for Breach
- Disgorgement of profits and restoration of trust property
- Trustee removal and surcharge
- Voiding the self-dealing transaction
- Denial of compensation and attorney fee awards
Related Terms
- Executor — Similar loyalty obligations in estate administration
- Estate Planning — Trust creation and trustee selection
- Equity — Court authority over trust disputes
Barnes Walker Trust Litigation
Barnes Walker's attorneys enforce the duty of loyalty in Florida trust administration, protecting beneficiaries from trustee self-dealing. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 736 (Florida Trust Code)
The Florida Trust Code governs the creation, modification, and administration of trusts, including trustee duties, beneficiary rights, and trust termination.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC