florida can an attorney be a beneficiary of a trust for which he is trustee

by Sean Brekke 5 min read

In Florida, almost anyone can be a trustee as long as he or she is an adult of sound mind. A corporation, like a bank, can also act as a trustee. So can a professional, like a lawyer.

Full Answer

Can a trustee also be a beneficiary in Florida?

A beneficiary has the legal right to know certain information about his or her beneficial interest in the trust and the assets held by the trust. When information is not provided by the trustee, beneficiaries often assume the worst about the fiduciary’s administration of the trust, and significant legal fees can quickly begin to accrue.

Can a trustee have a conflict of interest with a beneficiary?

Feb 11, 2022 · Any individual may be a trustee and a beneficiary of a trust assuming that the trust agreement names other lifetime beneficiaries or successor beneficiaries after the death of the initial beneficiaries. For example, suppose a client wanted to serve as trustee of an irrevocable trust created for his benefit. The client’s general attorney cautioned him that he could not …

What are a trustee’s duties to beneficiaries?

Oct 28, 2019 · Florida beneficiary rights require that beneficiaries have the right to insist that the trustee protect trust assets—through appropriate legal action when necessary—and invest prudently. If the trustee has special skills, a beneficiary can expect that those skills will be used to benefit the trust.

Is the beneficiary of a trust responsible for Attorney’s fees?

Jan 18, 2022 · Trust litigation. Florida attorney Reed Bloodworth handles trustee defense for clients in legal disputes with beneficiaries. Based in Orlando, Reed is the managing partner of Bloodworth Law. Reed explains that a lot of times, complaints or requests to remove a trustee may erupt over issues that a beneficiary perceives are wrong, but they’re actually not wrong at all.

Can you be a trustee and a beneficiary of a trust in Florida?

Can a Trustee Also Be a Beneficiary in Florida? The short, technical answer is “yes.” Nothing in Florida law prohibits a beneficiary of a trust from also serving as trustee. However, the fact that it's legal to appoint a beneficiary as trustee doesn't necessarily mean that it's a good idea.Nov 10, 2021

Can a trustee of a trust also be a beneficiary?

The short answer is yes. Trustees can be a beneficiary of a discretionary trust, although it would be rare for the trustee to not have a co-trustee appointed to make discretionary decisions.Jul 20, 2021

Who Cannot be a beneficiary of a trust?

In trust law according to Section-9 of Indian Trust Act 1886 “Every person capable of holding property may be a beneficiary. A proposed beneficiary may renounce his interest underthetrust by disclaimer addressed to the trustee, or by setting up, with notice of the trust, a claim inconsistent therewith.

Can a trustee be a beneficiary of an irrevocable trust Florida?

Can Same Person Be Beneficiary And Sole Trustee of Florida Irrevocable Trust? Any individual may be a trustee and a beneficiary of a trust assuming that the trust agreement names other lifetime beneficiaries or successor beneficiaries after the death of the initial beneficiaries.Jun 30, 2018

Who can be a beneficiary of a trust?

A trust beneficiary can be a person, a company or the trustee of another trust. The trustee may also be a beneficiary, but not the sole beneficiary unless there is more than one trustee.Sep 10, 2015

Can a beneficiary be a trustee of an irrevocable trust?

Can a Beneficiary be a trustee. The simple answer is yes, a Trustee can also be a Trust beneficiary. ... Being a Trustee and beneficiary can be problematic, however, because the Trustee should still comply with the duties and responsibilities of a Trustee.

Who holds the real power in a trust the trustee or the beneficiary?

A trust is a legal arrangement through which one person, called a "settlor" or "grantor," gives assets to another person (or an institution, such as a bank or law firm), called a "trustee." The trustee holds legal title to the assets for another person, called a "beneficiary." The rights of a trust beneficiary depend ...Jun 22, 2021

Who can be trustees of a trust?

Who can be a trustee? As a general rule, anyone over the age of 18 can be a trustee. But you will want to be very careful about who you give the power and responsibility of trusteeship to. Many people appoint a trusted family member or friend for trusts that take effect after their death.

Can a non resident be a trustee of a trust?

NRIs can be appointed as Trustees of valid Indian Trusts under Income Tax Act: ITAT [Read Order] The New Delhi bench of Income Tax Appellate Tribunal (ITAT) in Global Academy of Emergency Medicine versus CIT(E), held that under the Income Tax Act appointing of NRIs as trustees of valid Indian trusts are permissible.Oct 10, 2018

What is the difference between a revocable and irrevocable trust?

A revocable trust and living trust are separate terms that describe the same thing: a trust in which the terms can be changed at any time. An irrevocable trust describes a trust that cannot be modified after it is created without the beneficiaries' consent.

Does Florida allow domestic asset protection trusts?

Alaska, Delaware, Utah, and Nevada are states with favorable domestic asset protection trust laws. Florida does not have a statute enabling self-settled domestic asset protection trusts.Feb 11, 2022

Can you change beneficiaries in an irrevocable trust?

Once a California Trust becomes irrevocable, the Trust beneficiaries generally cannot be changed. ... This occurs most often in Trusts created by married couples. The Trust may provide that upon the death of the first spouse, the Trust becomes irrevocable—cannot be changed or amended.Nov 3, 2021

What are the duties of a trustee?

General Duties of the Trustee 1 Hold trust property 2 Invest the trust assets 3 Distribute trust income and/or principal to the beneficiaries, as directed in the trust agreement 4 Make tax decisions concerning the trust 5 Keep records of all trust transactions 6 Issue statements of account and tax reports to the trust beneficiaries 7 Answer any questions the beneficiaries may have concerning the trust.

Who has a fiduciary duty?

A trustee has a fiduciary duty to all beneficiaries of the trust. “ Understanding Fiduciary Duty ,” ( The Florida Bar Journal, Volume 84, No. 3) provides this short summary of fiduciary duty:

Is it difficult to fulfill a fiduciary duty?

Fulfilling the fiduciary duty described above may be difficult for a trustee whose own interests are compromised by protecting the interests of the other beneficiaries. And, that’s just the beginning of the complications a trustee who is also a beneficiary could face.

Does a trustee have to distribute to other beneficiaries?

While a trustee beneficiary’s personal interests are always affected by distributions to other beneficiaries, the conflict is more clear and direct when a remainder beneficiary is appointed trustee. Since the remainder beneficiary’s interest in the trust vests only after the primary beneficiaries have stopped receiving income, and he or she holds an interest only in what is left, any disbursements to beneficiaries directly diminish the remainder beneficiary’s interest in the trust.

Revocable vs. Irrevocable Trusts in Florida

Estate planning clients begin their planning process with the expectation that they will be creating... Read More

Florida Irrevocable Trust Law

What is an Irrevocable Trust? An irrevocable trust in Florida is an agreement among a settlor, trustee,... Read More

What is a beneficiary in Florida?

Florida beneficiary rights. In estate and contract law, a “beneficiary” is simply someone who has the legal right to receive the benefits of an instrument or contract. A beneficiary of a will, for example, has the right to receive distributions of estate assets through the will. Or a trust’s beneficiary is someone who receives disbursements ...

Can a beneficiary petition a court?

In the event of any improper dealing or expenses, beneficiaries can petition a court to void inappropriate transactions or to hold the trust ee liable for losses incurred by the trust. As with beneficiaries in probate, Florida trust law provides trust beneficiaries with substantial information rights. A beneficiary generally has the right ...

What is a POD in Florida?

“Payment on Death” (POD) and “Transfer on Death” (TOD) in Florida are similar designations allowing an asset’s title to automatically pass to a named beneficiary upon the current owner’s death. In Florida, POD designations are commonly used for bank and money-market accounts and CD’s. TOD designations are typically associated with stocks, bonds, and brokerage accounts. The big advantage of either designation is that, after the owner dies, the asset vests in the beneficiary with no need for probate.

What is an heir in a will?

An “heir,” on the other hand, stands to inherit—under state intestate succession laws—wealth from a decedent who did not have a will . Heirs are usually relatives of the decedent, but beneficiaries don’t necessarily have to be.

Can a beneficiary contest a will?

A beneficiary has the right to object to certain matters and petition the probate court for clarification of others. Within 90 days of receiving notice of the estate, a beneficiary can contest a will or appointment of the personal representative.

What are the duties of a personal representative?

Both a trustee and a personal representative are fiduciaries, charged with putting others’ interests above their own.

What is the duty of a trustee?

A trustee’s duty to act in good faith and in beneficiaries’ best interests includes a duty to avoid conflicts of interest and self-dealing, and to reasonably limit trust expenses . If a trust has more than one beneficiary, the trustee must act impartially toward the beneficiaries.

How to create a trust in Florida?

1. In the state of Florida, trust laws state that a trust is created only if the following is true: 1 The settlor has the capacity to create a trust. 2 The settlor indicates an intent to create the trust. 3 The trust has a definite beneficiary or is a charitable trust, a trust for the care of an animal, or a trust for a noncharitable purpose. 4 The trustee has duties to perform. 5 The same person is not the sole trustee and sole beneficiary.

Why do you need a living trust in Florida?

In the state of Florida, a living trust can be utilized to avoid probate upon the death of the grantor’s of the trust. This happens because living trust property is not titled in the name of the grantor at the time of their death and so the property is not considered as part of a probate estate.

How do trusts work in Florida?

In the state of Florida, Florida trusts may be created by: The transfer of property to another person as trustee during the settlor’s lifetime or by will or other disposition taking effect on the settlor’s death; The declaration by the owner of property that the owner holds identifiable property as trustee; or.

Is a trust a charitable trust?

The trust has a definite beneficiary or is a charitable trust , a trust for the care of an animal, or a trust for a noncharitable purpose. The trustee has duties to perform. The same person is not the sole trustee and sole beneficiary. 2. In the state of Florida, Florida trusts may be created by:

How to contact Weidner Law?

If you are in need of an attorney to help navigate your way through Florida trusts, Weidner Law can help! Just pick up the phone and give us a call today at 727-954-8752 or contact us through our online contact form to find out how we can help you with your Florida trust questions. Share Tweet Share Pin.

Can a revocable trust be amended in Florida?

In the state of Florida, a revocable living trust can be revoked or amended at any time during the life of the grantor of the trust. For as long as the grantor of the trust is living they are also considered to be the trustee and are allowed to exercise complete control over the trust. 7.

What is the benefit of a grantor of a trust?

One advantage to this scenario is that the Grantor of the Trust (the one originally funding it) will be able to confidentially communicate to the drafting attorney their wishes about the Trust and their heirs in ways they wouldn't to a relative or loved one. Sometimes there are aspects of the Grantor's goals, wishes and fears which they'd like to keep private and aren't appropriate for being written into a Trust...

Can an attorney be a trustee?

Generally speaking there is no conflict of interest for an attorney to act as trustee. An attorney should discuss various options with you however. There are numerous parties who can act as trustee. Family, friends, corporate trustees, fiduciaries, and attorneys.

Responsibilities of The Trustee

  • General Duties of the Trustee
    The Florida Bar Association provides this list of the general duties of a trustee, though actual duties will vary somewhat depending on the terms of the trust. 1. Hold trust property 2. Invest the trust assets 3. Distribute trust income and/or principal to the beneficiaries, as directed in the tru…
  • Fiduciary Duties of the Trustee
    A trustee has a fiduciary duty to all beneficiaries of the trust. “Understanding Fiduciary Duty,” (The Florida Bar Journal, Volume 84, No. 3) provides this short summary of fiduciary duty: The most basic duty of a fiduciary is the duty of loyalty, which obligates the fiduciary to put the interests o…
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Potential Conflicts For Beneficiary Trustees

  • Fulfilling the fiduciary duty described above may be difficult for a trustee whose own interests are compromised by protecting the interests of the other beneficiaries. And, that’s just the beginning of the complications a trustee who is also a beneficiary could face. Steve R. Akers, writing for the American Bar Association’s Probate and Property magazine, calls naming a family member trust…
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Special Conflicts For Remainder Beneficiary Trustees

  • While a trustee beneficiary’s personal interests are always affected by distributions to other beneficiaries, the conflict is more clear and direct when a remainder beneficiary is appointed trustee. Since the remainder beneficiary’s interest in the trust vests only after the primary beneficiaries have stopped receiving income, and he or she holds an interest only in what is left, …
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The Appearance of Conflict

  • Imagined problems are a very real problem when it comes to a beneficiary acting as trustee. Even if the trustee executes his or her duties perfectly and prioritizes the interests of the beneficiaries, the likelihood remains that one or more beneficiaries will feel slighted. In this circumstance, the trustee has done nothing wrong. However, conflicts arise and, in extreme cases, the dispute ove…
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Is A Beneficiary Trustee Right For Your Trust?

  • While Florida law allows appointment of a beneficiary trustee, there are clear pitfalls to be considered. The potential complications and consequences should be discussed in detail with your estate lawyerbefore you make a decision. If you feel that a conflict of interest exists with a Trustee who is also a Trust Beneficiary as described above, you may contact Florida Probate Liti…
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