Trusts. Legal Piggy Banks.

Trusts can be formed during your life or drafted to take effect after you are gone. You can put money in while you are alive, or you can wait until you are gone. Trusts are the legal world's little piggy bank. You put the money in there, until its absolutely the right time to break it open and take it out.

If you live in the South Florida area, such as Fort Lauderdale, Boca Raton, Weston, Plantation, Davie or Pembroke Pines and you would like more information on how best to legally protect your money, contact attorney Eliot Dempsey at The Dempsey Law Firm today.

Florida laws governing trusts are primarily found in the Florida Trust Code, located in Chapter 736 of the Florida Statutes. These laws regulate how trusts are created, administered, modified, and terminated, and they define the rights and duties of trustees and beneficiaries. A valid Florida trust generally requires a settlor (the person creating the trust) with legal capacity, a clear intent to create the trust, a lawful purpose, identifiable beneficiaries, and a trustee with duties to perform. Trusts may be revocable or irrevocable, and unless a trust expressly states otherwise, Florida law presumes a trust is revocable during the settlor’s lifetime.

The Florida Trust Code imposes strict fiduciary duties on trustees, including duties of loyalty, prudence, impartiality, and good faith. Trustees must administer the trust solely in the interests of the beneficiaries, manage trust assets responsibly, avoid conflicts of interest, and keep accurate records. Trustees are also required to provide beneficiaries with certain information, such as notice of the trust’s existence, accountings upon request, and disclosure of material facts related to trust administration. Failure to comply with these duties can expose a trustee to personal liability, removal by the court, or surcharge for losses.

Florida law also provides flexibility through trust modification and termination rules. Trusts may be modified or terminated by court order in certain circumstances, such as when the trust’s purpose has been fulfilled, becomes impossible or impracticable, or when modification better serves the settlor’s intent due to changed circumstances. Beneficiaries may have standing to challenge trust validity, trustee actions, or distributions, and Florida courts handle trust disputes in probate or circuit court depending on the issue.

Overall, Florida’s trust laws are designed to balance the settlor’s intent, beneficiary protections, and efficient trust administration. They offer strong legal structure for estate planning, asset management, and wealth transfer while providing court oversight and remedies when trusts are mismanaged or abused.