Legal Question in Wills and Trusts in Florida

In the State of Florida, can the Trustee of Living Revocable Trust use Trust assets to defend themselves in an estate matter? In this case the Trustee is a beneficiary of the Trust and the Estate.


Asked on 8/12/11, 9:46 am

3 Answers from Attorneys

Sanford M. Martin Sanford M. Martin, P.A.

Yes, unless the terms of the trust prohibit such expenditures. Generally, if the trustee has acted in a responsible manner consistent with terms of the trust and fiduciary law, a trustee's legal expenses may be paid by trust assets.

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Answered on 8/12/11, 10:30 am

You question is a little vague. Yes, if it is related to the Trust and their services, as Mr. Martin said. No, if it is an unrelated matter not affliated with the trust.

I wasn't sure if the Trustee was using Trust assets to defend themself in an estate matter that did not involve the Trust itself or the Trust's interest. If so, then there even could be a criminal charge against them.

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Answered on 8/12/11, 10:38 am
Michael Sasso M. Daniel Sasso

Assuming it is for a Trust. The Florida Trust Code generally requires the trustee to notify the beneficiaries and in certain circumstances to obtain court authorization to pay attorney fees and costs arising out of defending a lawsuit filed against the trustee which lawsuit alleges a breach of trust committed by the trustee - out of the assets/monies comprising the trust estate. If the Plaintiff sought a restriction on use of the Trust's funds for the Trustee to defend itself and If court agreed with the same, then during the pending litigation it could be very difficut for the trustee to operate and perhaps need to expend his/her own funds during the interim until the lawsuit is decided; therefore it is always a wise decision to put a exculpation and defense provision into the trust terms. There is no prevention by the Grantor providing in the trust agreement that such expenses for legal defense can be paid wihout court authorization -see FS 736.0802(10) but court could restrict payment to trustee under subsection (b) of the statute; also see FS 736.0105(2). Obviously it must be a fair term since the law does not exempt the trustee for bad faith or reckless indifference to the purposes of the trust or interest of the beneficiaries, or malfeasance of breach of a clear fiduciary duty. Seek legal counsel for assistance.

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Answered on 8/12/11, 1:44 pm


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