Family First Firm
Florida Trust Administration
Named as a trustee? Family First Firm is here to guide you through the important role of settling an estate outside of probate.
What's The Difference
Probate vs. Trust Administration
There are two primary ways an estate’s assets are distributed after a person’s death: Estate administration (also called Probate) or Trust Administration.
Probate is the formalized court process for settling an estate. It follows the terms of a decedent’s Will, if one exists. A Petition for Administration is filed with the probate division of the Circuit Court. A Probate Judge is assigned to the case. A personal representative is named and granted Letters of Administration. These letters authorize the personal representative to act on behalf of the estate. They can marshal and collect assets, deal with creditors, and file tax returns. They can also engage other professionals to help administer the estate. When appropriate, they distribute remaining assets to heirs and close the estate. Personal representatives must hire an attorney for formal probate proceedings.
Trust Administration is different—it’s not court-supervised. The trustee plays a role similar to a personal representative. However, they conduct administration according to the trust agreement and Florida law.
Trusts offer flexibility in how assets are distributed. Assets can go outright to beneficiaries at death. Or they can be designed to last for years (or even indefinitely!). Longer-term trusts create ongoing duties for the trustee. The trustee must invest, manage, and distribute assets. They typically hire investment advisors, attorneys, and other professionals as needed. Trustees should take this responsibility seriously. Failure to administer a trust properly can cause stress and anxiety. It can also create personal liability. In some cases, it may even result in criminal liability.
Book a consultation with The Family First Firm probate and trust administration attorneys. Learn more about the trust administration process. Get peace of mind knowing it will be handled properly.
Planning Ahead
What is a Revocable Living Trust?
A revocable living trust is a simple way to manage and protect your assets. It typically involves three key roles. The settlors create the trust and decide how it is managed. They transfer their assets into it during their life or after death. Trustees are responsible for carrying out the trust’s instructions. Beneficiaries are the people who ultimately receive the assets. In short, settlors set the rules. Trustees follow them, and beneficiaries see the results.
Usually, a person serves in all three roles while they are living and healthy. They act as settlor, trustee, and beneficiary. This changes if they can no longer manage the assets due to death, illness, or incapacity. At that point, a successor trustee steps in. They manage the trust assets for the settlor’s benefit based on the trust terms. When the settlor passes away, the trustee checks the trust document. This determines who the new beneficiaries are.
Family First Firm’s Orlando estate planning attorneys can help you. We will set up a Revocable Living Trust as part of your comprehensive planning.
Understanding the process
What Happens In Trust Administration After The Settlor Passes?
Trust Administration refers to the steps and processes that ensure the terms of the creator of the trust are carried out in accordance with applicable laws.
This list of responsibilities can become overwhelming, especially for a family member without experience or knowledge regarding estate planning, Florida’s trust code and succession laws. There is a risk of unintentionally mismanaging funds or being accused of doing so, which can have severe consequences for the person administering the trust. For this reason, hiring a Family First Firm trust administration attorney to assist and advise the trustee in handling these responsibilities is strongly recommended. Book a consultation to see how we can assist.
Many significant steps are often required of the Successor Trustee, including:
- Providing the required notice to heirs and beneficiaries
- Inventorying, protecting, and sometimes investing trust assets
- Filing the required notice of trust in the estate proceedings
- Identifying creditors and resolving creditor claims
- Filing tax return(s) and resolving tax liabilities
- Preparing trust accounting(s)
- Managing assets until the time to distribute
- Making distributions of trust assets
- Closing trust administration
Florida Trust Administration
Hiring a trust administration attorney will give you peace of mind that the required steps involving the duties required of the trustee and trust assets will be properly performed. Book a consultation with Family First Firm to learn more about trust administration and how to avoid and address common problems.
Unfortunately, trust administration can involve unexpected challenges. Some of the more frequent issues include:
- Death of Beneficiary or Incapacity
- Trustee Errors and/or Omissions
- Beneficiary Disagreement
- Poorly drafted trust documents
Are Trustees Entitled To Compensation?
Administering a trust can be a significant responsibility, and in Florida, trustees are legally entitled to reasonable compensation for the time and effort they put into managing a trust.
Under the Florida Trust Code, this compensation is generally based on a percentage of the trust’s assets, typically ranging from 1-3%, depending on the size of the trust and the specific circumstances involved. This ensures that trustees are fairly compensated for the important role they play.
Family First Firm
- Tailored Solutions: We design directives that integrate with your estate plan, guardianship, and healthcare needs.
- Guidance Every Step: From drafting to witness requirements, we handle the details.
- Recognized & Trusted: Named one of the fastest-growing firms in the U.S. by Law Firm 500 and Inc. 5000, and Florida’s highest-rated elder law firm.
- Accessible & Compassionate: Approachable attorneys, flexible scheduling, and a proven track record of protecting Florida families.