How Do You Know if a Trustee Will Follow Your Instructions After You’re Gone?

Trusts are popular in Florida for various reasons, including probate avoidance and asset protection. But as the name implies, this estate planning strategy relies on a foundation of trust. How do you know whether your trustee will actually follow your instructions after you’re gone? Will they act in the best interests of your beneficiaries? What’s stopping them from using your wealth in whatever they see fit? These are questions you might want to explore with an experienced estate planning attorney in St. Petersburg.

Trustees Are Legally Required to Act in the Best Interests of Your Beneficiaries

Florida law requires trustees to act in the best interests of their beneficiaries at all times. Specifically, your trustee has a fiduciary duty to act in their best interests. If a trustee takes actions that go against these best interests, they may face legal action.

This alone serves as a safeguard against illegal or unethical behavior by your trustee after you’re gone. Theoretically, your loved ones could sue the trustee, expose their misconduct, and ask a court to replace them. That said, it makes sense to avoid this outcome if possible. Suing a trustee would drain your family’s financial resources, and this process takes time.

Your Beneficiaries Should Receive Regular Updates About the Trust Assets

Under the Florida Trust Code, your trustee must also provide your beneficiaries with regular updates regarding the trust assets. Specifically, they must provide annual reports on assets, income, expenses, distributions, legal fees, and all other transactions throughout the calendar year. At any point in time, a beneficiary also has the right to request and receive financial records pertaining to the trust.

Leave Behind Clear Instructions to Avoid Trustees Making Their Own Decisions

If you’re concerned about your trustee taking matters into their own hands and making decisions that you would not have approved of, consider leaving behind a specific set of instructions. You can write these instructions in your trust document, and your trustee is legally obliged to follow them. Even if they deviate slightly from the instructions, they may face legal action and allegations of breaching their fiduciary duty.

That said, overly specific instructions can be problematic, as they may give your trustee no flexibility with which to handle unexpected situations. A trust administration attorney can help you strike a balance between ambiguity and specificity.

Choose a Predictable Trustee

If you’re concerned about your trustee doing unwanted things after you’re gone, consider choosing someone reliable and predictable to fill this role. Trust companies often have fewer conflicts of interest than family members, and they are almost always unbiased. A trust administration lawyer can also guide your trustee.

Can an Estate Planning Lawyer in St. Petersburg Help Me?

If you’re concerned about what will happen to your trust after you’re gone, consider speaking with an estate planning lawyer in St. Petersburg. Drude Tomori Law has experience with estate administration, and we can help you set up safeguards that protect your assets and beneficiaries after you’re gone. We serve families in St. Petersburg, Lakewood Ranch, Bradenton, and Sarasota.

Source: 

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html