What Is a Trustee?
A trustee is the person or institution responsible for managing the assets held in a trust according to the trust's terms. The trustee holds legal title to the trust property and has a fiduciary duty to manage it for the benefit of the beneficiaries. Trustees can be individuals (family members, friends, attorneys) or institutional (banks, trust companies).
Florida Trustee Law
Trustee duties and powers in Florida are governed by the Florida Trust Code, Chapter 736, Florida Statutes:
- Duty of loyalty — The trustee must administer the trust solely in the beneficiaries' interests and avoid conflicts of interest (Section 736.0802).
- Duty of prudence — The trustee must exercise reasonable care, skill, and caution in managing trust assets (Section 736.0804).
- Duty to inform — The trustee must keep qualified beneficiaries reasonably informed about trust administration and provide accountings upon request (Section 736.0813).
- Duty of impartiality — When there are multiple beneficiaries, the trustee must act impartially, balancing the interests of current beneficiaries against future beneficiaries.
- Investment standard — The trustee must invest trust assets as a prudent investor would, considering the trust's purposes, distribution requirements, and risk tolerance (Section 736.0901, Prudent Investor Rule).
Types of Trustees
- Individual trustee — A person (often a family member) named as trustee. Cost-effective but may lack investment expertise.
- Corporate/institutional trustee — A bank or trust company. Professional management, continuity, and fiduciary expertise, but charges annual fees (typically 0.5% to 1.5% of trust assets).
- Co-trustees — Two or more trustees acting together. Common when combining a family member with a professional trustee.
- Successor trustee — Named in the trust to take over if the original trustee dies, resigns, or becomes incapacitated.
Related Terms
- Living Trust — The most common trust type in Florida estate planning
- Beneficiary — The person the trustee serves
- Fiduciary Duty — The standard the trustee must meet
- Land Trust — Trustee holds title to real property
Barnes Walker Trust Administration
Barnes Walker's trust attorneys advise trustees on their duties and represent beneficiaries in trust disputes. 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