WHAT IS A FIDUCIARY DUTY IN FLORIDA?

When someone is entrusted with the administration of another's trust or estate, a fiduciary relationship is created between the person or entity who is doing the administration and those for whom the trust or estate was created and those who will benefit. Under Florida law, the fiduciary - in this case the administrator or trustee - is responsible for holding, managing, and distributing assets that ultimately belong the beneficiaries of the trust or estate. The fiduciary, therefore, has a legal obligation, or duty, to act carefully and in the best interests of the beneficiaries.

In the trust setting, the fiduciary duty requires the administrator manage the trust according to its terms and in best interests of its beneficiaries. A trustee owes duties of impartiality and loyalty to beneficiaries of the trust. Typical obligations of the trustee include providing an accounting of the trust, obtaining tax identification numbers, and distributing assets according to the terms of the trust.

In the event the duty is breached, a fiduciary is subject legal consequences, such as lawsuits, fines or even professional discipline. Depending on the nature of the breach, the fiduciary could also face criminal penalties. A fiduciary obligation is a serious duty that requires adherence to the legal and ethical standards imposed by state law and the trust or estate instrument, itself.

For this reason, trust administration should be left in the hands of an experienced administrator or trustee, like a seasoned trust and estate attorney. An attorney not only has legal obligation as a fiduciary, he also has an ethical obligation as a lawyer to act in the best interest of his clients. An experienced probate attorney can help a client plan a trust or estate, then administrate it in diligent, ethical manner.

Please reach out to us at 141 5th Street NW, Suite 300, Winter Haven, Florida 33881 at 863.294.1114.

Established in 1991, Rignanese & Associates is available to work with clients on their legal needs.

On behalf of J. Kelly Kennedy, Attorney/CPA, PLLC, which has been acquired by Rignanese & Associates, PLLC.

Source: Florida Bar Journal, "Understanding Fiduciary Duty," accessed Feb. 20, 2018.