Chapter 736 Florida Trust Code
Part I - General Provisions And Definitions (ss. 736.0101-736.0112)
- §736.0101 Short title.
This chapter may be cited as the "Florida Trust Code" and for purposes of this chapter is referred to as the "code." History.--s. 1, ch....
- §736.0102 Scope.
This code applies to express trusts, charitable or noncharitable, and trusts created pursuant to a law, judgment, or decree that requires the trust to be...
- §736.0103 Definitions.
Unless the context otherwise requires, in this code: (1) "Action," with respect to an act of a trustee, includes a failure to act. (2) "Affiliate" means any...
- §736.0104 Knowledge.
(1) Subject to subsection (2), a person has knowledge of a fact if the person: (a) Has actual knowledge of the fact; (b) Has received a notice or...
- §736.0105 Default and mandatory rules.
(1) Except as otherwise provided in the terms of the trust, this code governs the duties and powers of a trustee, relations among trustees, and the...
- §736.0106 Common law of trusts; principles of equity.
The common law of trusts and principles of equity supplement this code, except to the extent modified by this code or another law of this...
- §736.0107 Governing law.
The meaning and effect of the terms of a trust are determined by: (1) The law of the jurisdiction designated in the terms of the trust,...
- §736.0108 Principal place of administration.
(1) Terms of a trust designating the principal place of administration of the trust are valid only if there is a sufficient connection with the designated...
- §736.0109 Methods and waiver of notice.
(1) Notice to a person under this code or the sending of a document to a person under this code must be accomplished in a manner...
- §736.0110 Others treated as qualified beneficiaries.
(1) A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under this code...
- §736.0111 Nonjudicial settlement agreements.
(1) For purposes of this section, the term "interested persons" means persons whose interest would be affected by a settlement agreement. (2) Except as otherwise provided in...
- §736.0112 Qualification of foreign trustee.
Unless otherwise doing business in this state, local qualification by a foreign trustee is not required for the trustee to receive distribution from a local...
Part II - Judicial Proceedings (ss. 736.0201-736.0207)
- §736.0201 Role of court in trust proceedings.
(1) Except as provided in subsection (5) and s. 736.0206, proceedings concerning trusts shall be commenced by filing a complaint and shall be governed by the...
- §736.0202 Jurisdiction over trustee and beneficiary.
(1) By accepting the trusteeship of a trust having its principal place of administration in this state or by moving the principal place of administration to...
- §736.0203 Subject matter jurisdiction.
The circuit court has original jurisdiction in this state of all proceedings arising under this code. History.--s. 2, ch. 2006-217. ...
- §736.0204 Venue.
Venue for actions and proceedings concerning trusts, including those under s. 736.0201, may be laid in: (1) Any county where the venue is proper under chapter...
- §736.0205 Trust proceedings; dismissal of matters relating to foreign trusts.
Over the objection of a party, the court shall not entertain proceedings under s. 736.0201 for a trust registered, or having its principal place of...
- §736.0206 Proceedings for review of employment of agents and review of compensation of trustee and employees of trust.
(1) After notice to all interested persons, the court may review the propriety of the employment by a trustee of any person, including any attorney, auditor,...
- §736.0207 Trust contests.
An action to contest the validity of all or part of a trust may not be commenced until the trust becomes irrevocable, except this section...
Part III - Representation (ss. 736.0301-736.0306)
- §736.0301 Representation; basic effect.
(1) Notice, information, accountings, or reports given to a person who may represent and bind another person under this part may serve as a substitute for...
- §736.0302 Representation by holder of power of appointment.
(1) The holder of a power of appointment may represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to...
- §736.0303 Representation by fiduciaries and parents.
To the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to a...
- §736.0304 Representation by person having substantially identical interest.
Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented...
- §736.0305 Appointment of representative.
(1) If the court determines that an interest is not represented under this part, or that the otherwise available representation might be inadequate, the court may...
- §736.0306 Designated representative.
(1) If authorized in the trust instrument, one or more persons may be designated to represent and bind a beneficiary and receive any notice, information, accounting,...
Part IV - Creation, Validity, Modification, And Termination (ss. 736.0401-736.0417)
- §736.0401 Methods of creating trust.
A trust may be created by: (1) Transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking...
- §736.0402 Requirements for creation.
(1) A trust is created only if: (a) The settlor has capacity to create a trust. (b) The settlor indicates an intent to create the trust. (c) The trust...
- §736.0403 Trusts created in other jurisdictions; formalities required for revocable trusts.
(1) A trust not created by will is validly created if the creation of the trust complies with the law of the jurisdiction in which the...
- §736.0404 Trust purposes.
A trust may be created only to the extent the purposes of the trust are lawful, not contrary to public policy, and possible to achieve....
- §736.0405 Charitable purposes; enforcement.
(1) A trust may be created for charitable purposes. Charitable purposes include, but are not limited to, the relief of poverty; the advancement of arts, sciences,...
- §736.0406 Effect of fraud, duress, mistake, or undue influence.
A trust is void if the creation of the trust is procured by fraud, duress, mistake, or undue influence. Any part of the trust is...
- §736.0407 Evidence of oral trust.
Except as required by s. 736.0403 or a law other than this code, a trust need not be evidenced by a trust instrument but the...
- §736.0408 Trust for care of an animal.
(1) A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates on the death of...
- §736.0409 Noncharitable trust without ascertainable beneficiary.
Except as otherwise provided in s. 736.0408 or by another provision of law, the following rules apply: (1) A trust may be created for a noncharitable...
- §736.0410 Modification or termination of trust; proceedings for disapproval of nonjudicial acts.
(1) In addition to the methods of termination prescribed by ss. 736.04113-736.0414, a trust terminates to the extent the trust expires or is revoked or is...
- §736.04113 Judicial modification of irrevocable trust when modification is not inconsistent with settlor's purpose.
(1) Upon the application of a trustee of the trust or any qualified beneficiary, a court at any time may modify the terms of a trust...
- §736.04115 Judicial modification of irrevocable trust when modification is in best interests of beneficiaries.
(1) Without regard to the reasons for modification provided in s. 736.04113, if compliance with the terms of a trust is not in the best interests...
- §736.04117 Trustee's power to invade principal in trust.
(1)(a) Unless the trust instrument expressly provides otherwise, a trustee who has absolute power under the terms of a trust to invade the principal of the...
- §736.0412 Nonjudicial modification of irrevocable trust.
(1) After the settlor's death, a trust may be modified at any time as provided in s. 736.04113(2) upon the unanimous agreement of the trustee and...
- §736.0413 Cy pres.
(1) If a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful, the court may apply the doctrine of cy pres to modify or...
- §736.0414 Modification or termination of uneconomic trust.
(1) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $50,000 may terminate the...
- §736.0415 Reformation to correct mistakes.
Upon application of a settlor or any interested person, the court may reform the terms of a trust, even if unambiguous, to conform the terms...
- §736.0416 Modification to achieve settlor's tax objectives.
Upon application of any interested person, to achieve the settlor's tax objectives the court may modify the terms of a trust in a manner that...
- §736.0417 Combination and division of trusts.
(1) After notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or...
Part V - Creditors' Claims; Spendthrift And Discretionary Trusts (ss. 736.0501-736.0507)
- §736.0501 Rights of beneficiary's creditor or assignee.
Except as provided in s. 736.0504, to the extent a beneficiary's interest is not subject to a spendthrift provision, the court may authorize a creditor...
- §736.0502 Spendthrift provision.
(1) A spendthrift provision is valid only if the provision restrains both voluntary and involuntary transfer of a beneficiary's interest. This subsection does not apply to...
- §736.0503 Exceptions to spendthrift provision.
(1) As used in this section, the term "child" includes any person for whom an order or judgment for child support has been entered in this...
- §736.0504 Discretionary trusts; effect of standard.
(1) As used in this section, the term "discretionary distribution" means a distribution that is subject to the trustee's discretion whether or not the discretion is...
- §736.0505 Creditors' claims against settlor.
(1) Whether or not the terms of a trust contain a spendthrift provision, the following rules apply: (a) The property of a revocable trust is subject to...
- §736.05053 Trustee's duty to pay expenses and obligations of settlor's estate.
(1) A trustee of a trust described in s. 733.707(3) shall pay to the personal representative of a settlor's estate any amounts that the personal representative...
- §736.05055 Notice of trust.
(1) Upon the death of a settlor of a trust described in s. 733.707(3), the trustee must file a notice of trust with the court of...
- §736.0506 Overdue distribution.
(1) As used in this section, the term "mandatory distribution" means a distribution of income or principal the trustee is required to make to a beneficiary...
- §736.0507 Personal obligations of trustee.
Except to the extent of the trustee's interest in the trust other than as a trustee, trust property is not subject to personal obligations of...
Part VI - Revocable Trusts (ss. 736.0601-736.0604)
Part VII - Office Of Trustee (ss. 736.0701-736.0709)
- §736.0701 Accepting or declining trusteeship.
(1) Except as otherwise provided in subsection (3), a person designated as trustee accepts the trusteeship: (a) By substantially complying with a method of acceptance provided in...
- §736.0702 Trustee's bond.
(1) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the...
- §736.0703 Cotrustees.
(1) Cotrustees who are unable to reach a unanimous decision may act by majority decision. (2) If a vacancy occurs in a cotrusteeship, the remaining cotrustees or...
- §736.0704 Vacancy in trusteeship; appointment of successor.
(1) A vacancy in a trusteeship occurs if: (a) A person designated as trustee declines the trusteeship; (b) A person designated as trustee cannot be identified or does...
- §736.0705 Resignation of trustee.
(1) A trustee may resign: (a) Upon at least 30 days' notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or (b) With the approval...
- §736.0706 Removal of trustee.
(1) The settlor, a cotrustee, or a beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on...
- §736.0707 Delivery of property by former trustee.
(1) Unless a cotrustee remains in office or the court otherwise orders and until the trust property is delivered to a successor trustee or other person...
- §736.0708 Compensation of trustee.
(1) If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances. (2) If...
- §736.0709 Reimbursement of expenses.
(1) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for reasonable expenses that were properly incurred in the...
Part VIII - Duties And Powers Of Trustee (ss. 736.0801-736.0817)
- §736.0801 Duty to administer trust.
Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of...
- §736.0802 Duty of loyalty.
(1) As between a trustee and the beneficiaries, a trustee shall administer the trust solely in the interests of the beneficiaries. (2) Subject to the rights of...
- §736.0803 Impartiality.
If a trust has two or more beneficiaries, the trustee shall act impartially in administering the trust property, giving due regard to the beneficiaries' respective...
- §736.0804 Prudent administration.
A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In...
- §736.0805 Expenses of administration.
In administering a trust, the trustee shall only incur expenses that are reasonable in relation to the trust property, the purposes of the trust, and...
- §736.0806 Trustee's skills.
A trustee who has special skills or expertise, or is named trustee in reliance on the trustee's representation that the trustee has special skills or...
- §736.0807 Delegation by trustee.
(1) A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable...
- §736.0808 Powers to direct.
(1) Subject to ss. 736.0403(2) and 736.0602(3)(a), the trustee may follow a direction of the settlor that is contrary to the terms of the trust while...
- §736.0809 Control and protection of trust property.
A trustee shall take reasonable steps to take control of and protect the trust property. History.--s. 8, ch. 2006-217. ...
- §736.0810 Recordkeeping and identification of trust property.
(1) A trustee shall keep clear, distinct, and accurate records of the administration of the trust. (2) A trustee shall keep trust property separate from the trustee's...
- §736.08105 Duty to ascertain marketable title of trust real property.
A trustee holding title to real property received from a settlor or estate shall not be required to obtain title insurance or proof of marketable...
- §736.0811 Enforcement and defense of claims.
A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust. History.--s. 8, ch. 2006-217. ...
- §736.0812 Collecting trust property.
A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee and, except as provided...
- §736.08125 Protection of successor trustees.
(1) A successor trustee is not personally liable for actions taken by any prior trustee, nor does any successor trustee have a duty to institute any...
- §736.0813 Duty to inform and account.
The trustee shall keep the qualified beneficiaries of the trust reasonably informed of the trust and its administration. (1) The trustee's duty to inform and account...
- §736.08135 Trust accountings.
(1) A trust accounting must be a reasonably understandable report from the date of the last accounting or, if none, from the date on which the...
- §736.0814 Discretionary powers; tax savings.
(1) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as "absolute," "sole," or...
- §736.08147 Duty to distribute trust income.
If a will or trust instrument granting income to the settlor's or testator's spouse for life is silent as to the time of distribution of...
- §736.0815 General powers of trustee.
(1) A trustee, without authorization by the court, may, except as limited or restricted by this code, exercise: (a) Powers conferred by the terms of the trust....
- §736.0816 Specific powers of trustee.
Except as limited or restricted by this code, a trustee may: (1) Collect trust property and accept or reject additions to the trust property from a...
- §736.08163 Powers of trustees relating to environmental or human health laws or to trust property contaminated with hazardous or toxic substances; liability.
(1) From the creation of a trust until final distribution of the assets from the trust, the trustee has, without court authorization, the powers specified in...
- §736.08165 Administration pending outcome of contest or other proceeding.
(1) Pending the outcome of a proceeding filed to determine the validity of all or part of a trust or the beneficiaries of all or part...
- §736.0817 Distribution on termination.
Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons...
Part IX - Trust Investments (s. 736.0901)
Part X - Liability Of Trustee And Rights Of Persons Dealing With Trustee (ss. 736.1001-736.1018)
- §736.1001 Remedies for breach of trust.
(1) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. (2) To remedy a breach of trust...
- §736.1002 Damages for breach of trust.
(1) A trustee who commits a breach of trust is liable for the greater of: (a) The amount required to restore the value of the trust property...
- §736.1003 Damages in absence of breach.
Absent a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or...
- §736.1004 Attorney's fees and costs.
(1)(a) In all actions for breach of fiduciary duty or challenging the exercise of, or failure to exercise, a trustee's powers; and (b) In proceedings arising under...
- §736.1005 Attorney's fees for services to the trust.
(1) Any attorney who has rendered services to a trust may be awarded reasonable compensation from the trust. The attorney may apply to the court for...
- §736.1006 Costs in trust proceedings.
(1) In all trust proceedings, costs may be awarded as in chancery actions. (2) Whenever costs are to be paid out of the trust, the court, in...
- §736.1007 Trustee's attorney's fees.
(1) If the trustee of a revocable trust retains an attorney to render legal services in connection with the initial administration of the trust, the attorney...
- §736.1008 Limitations on proceedings against trustees.
(1) Except as provided in subsection (2), all claims by a beneficiary against a trustee for breach of trust are barred as provided in chapter 95...
- §736.1009 Reliance on trust instrument.
A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary...
- §736.1010 Event affecting administration or distribution.
If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee...
- §736.1011 Exculpation of trustee.
(1) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that the term: (a) Relieves the trustee...
- §736.1012 Beneficiary's consent, release, or ratification.
A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee...
- §736.1013 Limitation on personal liability of trustee.
(1) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in...
- §736.1014 Limitations on actions against certain trusts.
(1) After the death of a settlor, no creditor of the settlor may bring, maintain, or continue any direct action against a trust described in s....
- §736.1015 Interest as general partner.
(1) Unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is...
- §736.1016 Protection of person dealing with trustee.
(1) A person other than a beneficiary who in good faith assists a trustee or who in good faith and for value deals with a trustee,...
- §736.1017 Certification of trust.
(1) Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification...
- §736.1018 Improper distribution or payment; liability of distributee.
Any person who received a distribution or was paid improperly from a trust shall return the assets or funds received and the income from those...
Part XI - Rules Of Construction (ss. 736.1101-736.1108)
Part XII - Charitable Trusts (ss. 736.1201-736.1210)
- §736.1201 Definitions.
As used in this part: (1) "Charitable organization" means an organization described in s. 501(c)(3) of the Internal Revenue Code and exempt from tax under s....
- §736.1202 Application of this part.
Except as otherwise provided in the trust, the provisions of this part apply to all private foundation trusts and split interest trusts, whether created or...
- §736.1203 Trustee of a private foundation trust or a split interest trust.
Except as provided in s. 736.1205, the trustee of a private foundation trust or a split interest trust has the duties and powers conferred on...
- §736.1204 Powers and duties of trustee of a private foundation trust or a split interest trust.
(1) In the exercise of a trustee's powers, including the powers granted by this part, a trustee has a duty to act with due regard to...
- §736.1205 Notice that this part does not apply.
In the case of a power to make distributions, if the trustee determines that the governing instrument contains provisions that are more restrictive than s....
- §736.1206 Power to amend trust instrument.
(1) In the case of a trust that is solely for a named charitable organization or organizations and for which the trustee does not possess any...
- §736.1207 Power of court to permit deviation.
This part does not affect the power of a court to relieve a trustee from any restrictions on the powers and duties that are placed...
- §736.1208 Release; property and persons affected; manner of effecting.
(1) The trustee of a trust, all of the unexpired interests in which are devoted to one or more charitable purposes, may release a power to...
- §736.1209 Election to come under this part.
With the consent of that organization or organizations, a trustee of a trust for the benefit of a public charitable organization or organizations may come...
- §736.1210 Interpretation.
This part shall be interpreted to effectuate the intent of the state to preserve, foster, and encourage gifts to, or for the benefit of, charitable...
Part XIII - Miscellaneous (ss. 736.1301-736.1303)
- §736.1301 Electronic records and signatures.
Any provisions of this code governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with...
- §736.1302 Severability clause.
If any provision of this code or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or...
- §736.1303 Application to existing relationships.
(1) Except as otherwise provided in this code, on July 1, 2007: (a) This code applies to all trusts created before, on, or after such date. (b) This...
