When a settlor (the creator of a trust) passes away, the trustee immediately steps into a legally significant role. Unlike probate, which begins with a court filing, a trust becomes active the moment the settlor dies. After acceptance of the role the trustee has instant authority and responsibility.
If you've just become a trustee, you may feel overwhelmed. Florida's Trust Code lays out strict fiduciary duties, deadlines, and reporting requirements. Failure to comply can expose a trustee to personal liability, even for unintentional mistakes.
Here is exactly where a trustee should start under Florida law.
1. Locate and Review the Trust Document
The trust agreement is the trustee's roadmap.
Your first steps include:
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Reviewing the full trust document
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Identifying beneficiaries
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Determining whether the trust is revocable or irrevocable
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Understanding distribution instructions
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Identifying co-trustees or successor trustees
Florida law requires trustees to administer a trust according to its exact terms, unless contrary to public policy, see Fla. Stat. §736.0107
2. Secure and Protect Trust Assets Immediately
Trustees must preserve and safeguard trust property. This includes:
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Securing the settlor's home
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Locating and protecting financial accounts
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Preventing unauthorized access
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Forwarding mail
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Documenting the condition of property
Under Fla. Stat. § 736.0813, trustees have a duty to act prudently and protect assets from loss.
This step is critical, especially in families where conflict is expected or where relatives attempt to control or conceal assets, something seen frequently in probate-related disputes. (Similar issues appear in cases involving misstatements of marital status or beneficiary rights.)
3. Obtain a Tax ID Number for the Trust
Once the settlor dies, a revocable living trust typically becomes irrevocable.
The trustee must:
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Apply for an EIN (Employer Identification Number)
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Open new trust accounts under the EIN
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Transfer assets appropriately
The settlor's Social Security number may no longer be used.
4. Provide Mandatory Notice to Beneficiaries
Florida law requires trustees to communicate early and transparently.
Under Fla. Stat. § 736.0813, a trustee must:
- Notify all qualified beneficiaries of the settlor's death
- Provide the trustee's name, address, and intention to administer the trust
- Provide a complete copy of the trust upon request
This notice must be provided within a reasonable time, and failure to do so can lead to beneficiary objections or litigation.
5. Create a Detailed Inventory of Trust Assets
Trustees are responsible for pinpointing:
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Real estate
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Bank accounts
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Investment and brokerage accounts
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Business interests
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Vehicles
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Digital assets
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Personal property
This inventory forms the basis of the trust accounting.
If property is missing or has been transferred improperly, the trustee may need to pursue recovery, including constructive trusts or fraud claims when assets were wrongfully taken.
6. Begin the Trust Accounting Process
Florida requires trustees to provide annual accountings unless all beneficiaries waive them.
The accounting must include:
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Starting asset values
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All income received
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All expenses and payments
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Trustee compensation
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Distributions
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The ending balance
This is governed by Fla. Stat. § 736.08135.
A trustee can be forced to provide an accounting if they fail to do so voluntarily, similar to beneficiaries compelling personal representatives to account in probate.
7. Determine Whether Probate Is Also Required
Even when a trust exists, probate may still be needed for:
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Individually owned real estate
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Personal property not titled in the trust
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Unfunded or new accounts
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Wrongfully transferred assets
The trustee often works alongside the personal representative to coordinate estate administration.
8. Pay Proper Expenses and Settle Debts
Trusts must pay legitimate expenses, including:
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Funeral costs
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Last illness bills
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Taxes
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Professional fees
However, trustees must not pay debts that legally belong to the probate estate alone. Understanding this distinction prevents disputes later.
9. Make Distributions According to the Trust
After debts are settled and assets are accounted for, the trustee must distribute trust property exactly as stated in the document. Trustees cannot alter terms, favor certain beneficiaries, or withhold property without legal justification.
10. Close the Trust Properly
A trust may close when:
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All assets are distributed
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All taxes and expenses are paid
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Beneficiaries sign receipts or releases
Trustees should maintain detailed records, as they remain personally liable for errors made during administration.
Conclusion
When a settlor dies, the trustee's job begins immediately. Florida law imposes clear fiduciary duties, deadlines, and reporting rules, and failure to comply can lead to disputes or litigation. By following these essential first steps, trustees can administer the trust properly, protect beneficiaries, and avoid legal problems.
Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship between you and Gold Legacy Law. For legal advice regarding your personal situation, please contact our office to schedule a consultation.