Question 1

What does inter vivos trust administration involve in Florida?

Accepted Answer

Trust administration is the process of managing trust assets according to the trust terms and Florida law. During the grantor’s lifetime (for a revocable trust where the grantor is also trustee), administration is informal: the grantor manages assets as usual. After the grantor’s death or incapacity, formal administration begins: the successor trustee takes over, provides notice to beneficiaries under Section 736.05055, inventories and values trust assets, pays the grantor’s debts, final expenses, and taxes, files the grantor’s final income tax return and any estate tax return, distributes assets to beneficiaries per the trust terms, and provides accountings to beneficiaries. The trustee has fiduciary duties of loyalty, impartiality, and prudent investment.

Question 2

What notices must a Florida trustee provide to beneficiaries?

Accepted Answer

Under Section 736.05055, Florida Statutes, after a revocable trust becomes irrevocable (typically at the grantor’s death), the trustee must serve a Notice of Trust on each qualified beneficiary and each person who received a specific distribution under the trust. The notice must include: the name of the trust, the date of the trust, the name and address of the trustee, and a statement that the trust is irrevocable. The trustee must also file a copy of the notice with the court in the county where the grantor was domiciled. The notice starts the statute of limitations for challenges to the trust (the contestant must file within the limitations period stated in the notice, typically six months).

Question 3

How long does Florida trust administration take?

Accepted Answer

Trust administration is typically faster than probate: simple trusts with straightforward distributions can be administered in 3-6 months. More complex trusts (with ongoing sub-trusts, tax planning provisions, real property in multiple states, or contested issues) may take 6-18 months. Factors affecting timing include: the complexity and number of trust assets, whether real property must be sold, the time needed to resolve debts and claims, estate tax return filing requirements (9 months after death, with extensions), beneficiary disputes or challenges, and whether ongoing sub-trusts must be established. Unlike probate, there is no mandatory waiting period for trust administration, allowing distributions to begin as soon as practicable.

Inter Vivos Trust Administration

Inter Vivos Trust Administration in Florida

Administration Timeline

Trustee Responsibilities

Notice of Trust Requirements

Related Terms

Barnes Walker Trust Administration

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