Understanding Beneficiary Rights Under a Florida Trust

Trusts play a major role in Florida estate planning, often allowing families to manage assets privately and efficiently. However, for those named as beneficiaries, it is important to understand that a trust is not just a financial arrangement—it is a legal relationship governed by specific duties and rights. Florida law provides clear rules to ensure that trustees act with transparency, accountability, and loyalty to the beneficiaries they serve.

Who Is Considered a Beneficiary

Under Florida Statutes Chapter 736, a beneficiary is any person who has a present or future interest in a trust. This includes someone who may receive distributions now or later, as well as anyone holding a power of appointment over trust property. Florida law also defines a “qualified beneficiary,” which generally refers to a person who is currently entitled to distributions or would be entitled if the trust were terminated today. Qualified beneficiaries receive broader notification and accounting rights than those with contingent or future interests.

The Trustee’s Fiduciary Duties

The trustee is responsible for managing the trust’s assets and carrying out its terms for the benefit of the beneficiaries. Florida law imposes several fiduciary duties on trustees, including:

• Duty of loyalty: The trustee must administer the trust solely in the interest of the beneficiaries and avoid conflicts of interest.
• Duty of impartiality: The trustee must act fairly when there are multiple beneficiaries with competing interests.
• Duty to account and inform: The trustee must provide regular updates and disclose important information about the trust’s administration.
• Duty of prudent administration: Trustees must manage trust property carefully, following Florida’s prudent investor rule and the specific instructions in the trust document.

Right to Information and Accounting

Transparency is one of the most important protections for beneficiaries. Florida Statute Section 736.0813 requires a trustee to notify qualified beneficiaries within 60 days after a trust becomes irrevocable or a new trustee takes office. This notice must include the trustee’s identity and contact information, as well as details about the trust’s existence and the right to request a copy of the trust instrument.

Beneficiaries also have the right to receive an accounting that summarizes all financial activity in the trust. This includes income, expenses, gains or losses, and distributions. Trustees must provide this accounting at least annually, when the trust terminates, or upon reasonable request. A beneficiary who does not receive timely accountings may petition the court to compel compliance.

Challenging Trustee Misconduct

When a trustee fails to fulfill their fiduciary duties, beneficiaries can take legal action. Common remedies include filing a petition to compel an accounting, to remove the trustee, or to seek damages for losses caused by mismanagement or self-dealing. Florida courts can also order the trustee to reimburse the trust for improper expenses or unauthorized transactions. However, because trust litigation can be costly and emotionally challenging, beneficiaries are encouraged to seek legal advice before pursuing a claim.

Modification and Termination of a Trust

In certain cases, beneficiaries may petition to modify or terminate a trust under Florida Statutes Sections 736.04113 and 736.04115. This is usually appropriate when the purpose of the trust has been fulfilled, has become impossible to achieve, or when modification would better serve the settlor’s intent. These actions often require court approval and may involve input from all interested parties, including the trustee.

Practical Steps for Beneficiaries

If you are a beneficiary of a Florida trust, it is important to stay informed and proactive. Request a copy of the trust document, review annual accountings carefully, and maintain written communication with the trustee. If something seems unclear or concerning, do not ignore it—Florida law gives you the right to ask questions and demand transparency. Keeping organized records and consulting with a qualified trust attorney can help protect your interests.

How Barnes Walker Can Help

At Barnes Walker, our attorneys help beneficiaries and trustees navigate the complexities of Florida trust law. Whether you need assistance understanding your rights, reviewing a trust accounting, or addressing potential trustee misconduct, our team provides clear, professional guidance rooted in decades of experience. We work to resolve disputes efficiently while protecting the intentions of the trust and the interests of all parties involved.

Have questions about your rights as a trust beneficiary. Contact Barnes Walker today to schedule a confidential consultation with one of our experienced Florida trust and estate attorneys.

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Sources

• Florida Statutes Chapter 736 — The Florida Trust Code
• Florida Statute §736.0813 — Duty to Inform and Account
• Florida Statute §736.0802 — Duty of Loyalty
• The Florida Bar Journal — The Trust Beneficiary’s Right of Access to Information
• Zoecklein Law — Beneficiary Rights and Trust Accounting in Florida
• Mark Moss Law — Understanding Beneficiary Rights in Florida