Creating A Tampa Living Trust: What Is A Successor Trustee And What Do They Do?
If you have a living trust as part of your Tampa estate plan, you have probably named someone to serve as your successor trustee. However, people often choose someone for this role without fully understanding what it entails or the level of responsibility it involves.
Whether you are setting up a trust and need to name a successor trustee, or you have just learned you have been named to serve in that role, understanding the job is the first step toward doing it well. Our Tampa trusts lawyer walks you through the process and explains what to expect.
What a Successor Trustee Actually Does
In a Tampa living trust, a successor trustee takes over when the original trustee (generally the person who created it) passes away or becomes incapacitated. Under Florida Statute 736.0801, a trustee has a legal duty to act in good faith, in accordance with the terms, and for the benefit of the beneficiaries.
Being a successor trustee involves real administrative and legal work, including:
- Locating, securing, and taking control of all trust assets.
- Notifying beneficiaries that the trust is now active and providing the information required under Florida Statutes.
- Paying the deceased person’s final bills, taxes, and any legitimate debts owed by the trust before making distributions.
- Filing any required tax returns.
- Keeping clear, accurate financial records of every transaction.
- Distributing the remaining trust assets to beneficiaries according to the exact terms spelled out in the original document.
A successor trustee who skips these steps, even unintentionally, can face personal liability if a beneficiary later challenges the trust’s administration.
Common Challenges Successor Trustees Run Into
Successor trustees have to walk a careful line, communicating clearly with beneficiaries while still protecting the privacy and integrity of the administration process. Fortunately, Florida law gives successor trustees some built-in protection.
Section 736.08125 of the Florida Statutes shields successor trustees from liability for actions taken by the prior trustee. However, that protection does not extend to mistakes the successor trustee makes after taking charge. Common challenges that can arise include:
- Distributing trust assets too quickly, before all debts and taxes are resolved.
- Failing to communicate with beneficiaries promptly.
- Misunderstanding ambiguous language in the trust document and making distribution decisions based on a misreading of the settlor’s intent.
- Taking on the role without realizing the time commitment involved, particularly when the trust holds real estate or a business interest.
A trustee who feels overwhelmed or unsure about any of these issues has the right to seek professional legal guidance throughout the administration process.
Request a Consultation With Our Experienced Tampa Trusts Lawyer
Being named as a successor trustee in a Tampa trust carries significant legal responsibility. Getting it right protects both the beneficiaries and you.
To protect yourself against personal liability, contact Bubley & Bubley, P.A. Our experienced Tampa trusts lawyer provides clear, practical guidance to trustees through every stage of trust administration. Request a consultation today with our experienced Tampa trusts lawyer.
Sources:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0736/Sections/0736.0801.html
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/Sections/0736.0704.html
