Trust administration in Florida is the process a successor trustee follows to settle and distribute a revocable living trust after the person who created it (the grantor or settlor) dies. It is governed by the Florida Trust Code, Chapter 736 of the Florida Statutes, and runs largely outside the probate court — which is the whole point of having a trust. The trustee gathers assets, pays valid debts and taxes, gives the required legal notices, and then distributes what remains to the beneficiaries named in the trust document.
If you are reading this, there is a good chance you just learned you are the successor trustee for your mother or father, or you are an adult child watching one sibling take on that role for an aging parent. Either way, what follows is a plain-English walk through what actually happens, what the law requires, and where people most often get tripped up.
What “Trust Administration” Really Means After a Death
While your parent was alive and competent, their revocable trust was, in practical terms, invisible. They were usually the grantor, the trustee, and the beneficiary all at once. They could move money, sell the house, amend the terms, or tear the whole thing up. Nothing about it was set in stone.
Death changes everything. The trust becomes irrevocable — its terms are now fixed — and the named successor trustee steps into a legal role with real duties and real exposure. You are no longer just a son or daughter handling some paperwork. You are a fiduciary, and Florida law holds fiduciaries to a high standard.
That word matters. A fiduciary must act in good faith, in the interests of the beneficiaries, and with the care a prudent person would use with their own affairs. Section 736.0801 of the Florida Statutes makes the basic command simple: the trustee must administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries. Everything else flows from that.
The Successor Trustee’s First Steps
The early weeks are mostly about gathering, securing, and notifying. Before anything is distributed, the trustee needs a clear picture of what the trust owns and who is entitled to what.
- Locate the original trust document and any amendments or restatements. Read all of it, not just the part about distributions. The dispositive terms control everything you do.
- Obtain certified copies of the death certificate. You will need several — banks, brokerages, and title companies each want their own.
- Secure the assets. Change locks if needed, make sure property insurance stays in force, and stop automatic payments that no longer make sense.
- Inventory everything. Identify which accounts and property are actually titled in the name of the trust versus what passes by beneficiary designation or remained in your parent’s individual name.
- Get a tax identification number (EIN) for the now-irrevocable trust from the IRS. The trust can no longer use your parent’s Social Security number.
- Open a trust administration bank account so trust funds never mix with your own. Commingling is one of the fastest ways a well-meaning trustee gets into trouble.
One issue surfaces constantly with aging parents: assets that were never properly transferred into the trust. A trust only controls property that has been retitled into its name. If your father signed a great trust in 2015 but his brokerage account still names him individually with no beneficiary, that account may have to go through probate anyway. A good estate plan often pairs the trust with a pour-over will to catch these stragglers. If you want to understand how a will works alongside a trust, our colleagues describe the role of a in detail.
The 30-Day Notice of Trust and Required Disclosures
Florida law imposes specific notice obligations, and the deadlines are not suggestions.
Notice of Trust
Under Section 736.05055, the trustee of a trust whose grantor has died must file a Notice of Trust with the clerk of court in the county where the grantor lived. This puts the world on notice that the trust exists and may be liable for the decedent’s debts. In a county like Miami-Dade, that filing goes to the probate division, even when no formal probate is opened.
Notice to Beneficiaries
Within 60 days of accepting the trusteeship — or of learning that the trust has become irrevocable — Section 736.0813 requires the trustee to notify the qualified beneficiaries of the trust’s existence, the trustee’s identity and contact information, and their right to request a copy of the trust instrument and trust accountings. Skipping this step is a common rookie mistake, and it is exactly the kind of thing a suspicious sibling will later point to.
Ongoing Duty to Inform and Account
The duty does not end with the first letter. Trustees must keep qualified beneficiaries reasonably informed and provide annual accountings. Transparency is your friend here. The trustees who get sued are almost always the ones who went quiet.
Dealing With Creditors and Taxes
Many families assume a trust makes debts disappear. It does not. The decedent’s valid debts still have to be addressed before beneficiaries get paid.
A trustee may choose to publish a notice to creditors and serve known creditors, which can shorten the window in which claims must be brought. Under Florida’s framework for limitations on claims against trust assets, taking the right procedural steps can cut off stale claims and give the trustee confidence to distribute. Done wrong — or skipped entirely — the trustee can remain exposed long after the money is gone.
On the tax side, the trustee is typically responsible for:
- The decedent’s final individual income tax return (Form 1040) for the year of death.
- Fiduciary income tax returns (Form 1041) for income the trust earns during administration.
- A federal estate tax return (Form 706) — but only for larger estates that exceed the federal exemption. Florida has no state estate tax and no inheritance tax, which spares most families this step entirely.
One genuine advantage often gets overlooked: assets in the trust generally receive a stepped-up cost basis as of the date of death. For an adult child who may eventually sell an inherited home or appreciated stock, that step-up can erase decades of capital gains. It is worth getting an appraisal to document the date-of-death value. Some families also use planning tools like retained life estates to pass real property efficiently; you can read more about and how they interact with later administration.
Distributing to Beneficiaries — and Why You Should Not Rush
The instinct, especially among grieving families, is to distribute fast. Resist it. A trustee who hands out money before debts, taxes, and expenses are settled can be held personally liable for the shortfall. The order matters: obligations first, beneficiaries last.
When the trust is ready to distribute, the trustee follows the document precisely. Outright gifts are paid out. Continuing or sub-trusts — common when a parent wants to protect a child with creditor problems, a spendthrift adult child, or a special-needs heir — get funded and kept going under the trustee’s stewardship. Before final distribution, many trustees ask beneficiaries to sign a receipt, release, and refunding agreement. It is not paranoia; it is protection, and an attorney will usually insist on it.
Throughout, keep meticulous records. Every dollar in, every dollar out, with receipts. If a sibling ever challenges your handling of Mom’s estate, your records are your defense.
How Long Florida Trust Administration Takes
There is no fixed clock the way there is for formal probate, but a straightforward administration with cooperative beneficiaries and clean assets often wraps up in six to twelve months. Several things stretch it out:
- Real estate that has to be sold, especially in a slow market.
- A required federal estate tax return, which can keep the administration open until the IRS closing letter arrives.
- Creditor disputes or contested claims.
- Family conflict — by far the most common delay, and the one no statute can fix.
The genuine speed advantage of a trust over probate is real, but it is not magic. A trust skips the court supervision and the public docket; it does not skip the work.
When Adult Children Disagree
The hardest part of trust administration is rarely the law. It is the family. One sibling is the trustee; the others wonder why distributions are taking so long, why the trustee is being paid, or whether the parent was unduly influenced near the end. If you are the trustee, over-communicate, document everything, and consider hiring counsel so decisions carry professional weight. If you are a beneficiary who feels shut out, you have rights — to information, to accountings, and to go to court if a trustee is breaching their duties.
Either way, neutral legal guidance lowers the temperature. An attorney who represents the trust, not one warring sibling, can keep the administration on the rails. Our regularly steps into exactly these situations for Miami families.
Do You Need an Attorney to Administer a Trust in Florida?
Florida does not require a successor trustee to hire a lawyer. But unlike a simple bank errand, trust administration carries personal liability if you get the notices, creditor steps, tax filings, or distribution order wrong. Most trustees of any meaningful estate retain counsel, and the trust itself can pay reasonable attorney’s fees and trustee compensation. For an adult child already carrying grief and a full-time job, that is usually money well spent.
If you would like a clearer picture of how trusts, wills, and probate fit together for your own family, browse our overviews of wills and Florida probate, or contact our Miami office to talk through your parents’ plan before a crisis forces the issue.
Frequently Asked Questions
Does a trust avoid probate in Florida?
A properly funded revocable trust avoids probate for the assets titled in its name. Any asset your parent left in their individual name without a beneficiary designation may still require probate, which is why a pour-over will and proper funding matter.
How quickly must I notify beneficiaries after the grantor dies?
Within 60 days of accepting the trusteeship or learning the trust has become irrevocable, Section 736.0813 requires you to notify qualified beneficiaries of the trust’s existence and their right to information and accountings.
Can a trustee be paid in Florida?
Yes. The Florida Trust Code allows a trustee reasonable compensation, and the trust may also pay the reasonable fees of attorneys and accountants hired to help administer it. Keep records to justify what you take.
Are inherited trust assets taxable in Florida?
Florida has no state estate or inheritance tax. A federal estate tax return is required only for estates above the federal exemption. Inherited assets generally get a stepped-up cost basis, which can sharply reduce capital gains tax if you later sell.
Frequently Asked Questions
Does a trust avoid probate in Florida?
A properly funded revocable trust avoids probate for the assets titled in its name. Any asset your parent left in their individual name without a beneficiary designation may still require probate, which is why a pour-over will and proper funding matter.
How quickly must I notify beneficiaries after the grantor dies?
Within 60 days of accepting the trusteeship or learning the trust has become irrevocable, Section 736.0813 of the Florida Statutes requires you to notify qualified beneficiaries of the trust’s existence and their right to information and accountings.
Can a trustee be paid in Florida?
Yes. The Florida Trust Code allows a trustee reasonable compensation, and the trust may also pay the reasonable fees of attorneys and accountants hired to help administer it. Keep records to justify what you take.
Are inherited trust assets taxable in Florida?
Florida has no state estate or inheritance tax. A federal estate tax return is required only for estates above the federal exemption. Inherited assets generally receive a stepped-up cost basis, which can sharply reduce capital gains tax if you later sell.
Do I need a lawyer to administer my parent's trust?
Florida does not require it, but trust administration carries personal liability if notices, creditor steps, taxes, or distributions are handled incorrectly. Most trustees of meaningful estates hire counsel, and the trust itself can pay reasonable attorney’s fees.
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