Trust Fiduciary Obligations: Loyalty and Care
Florida trustees owe comprehensive fiduciary obligations under the Florida Trust Code (Chapter 736) and the Prudent Investor Act (Section 518.11). The three core duties are loyalty, prudence, and impartiality.
Core Obligations
- Loyalty (§736.0802): Administer solely for beneficiaries; no self-dealing
- Prudence (§736.0804): Exercise reasonable care, skill, and caution
- Impartiality (§736.0803): Balance interests of current and remainder beneficiaries
Prudent Investor Standard
- Diversify investments unless trust specifies otherwise
- Evaluate the overall portfolio, not individual investments
- Balance risk and return for the trust's circumstances
- Minimize investment costs and fees
- Act with the skill of a prudent person familiar with such matters
Balancing Beneficiary Interests
Trustees must produce reasonable income for current beneficiaries while preserving capital for remainder beneficiaries, following the Florida Uniform Principal and Income Act for allocation rules.
Related Terms
- Executor — Similar fiduciary role in estates
- Estate Planning — Trust design and trustee selection
- Equity — Court oversight of trust administration
Barnes Walker Trust Administration
Barnes Walker's trust attorneys guide Florida trustees through their fiduciary obligations and defend against breach of duty claims. 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