The Alvarez family in Palm Beach set up a revocable living trust to avoid probate and care for their adult son with special needs. The hard question was not whether to create the trust, it was who would actually run it after they were gone. That decision, choosing the trustee, often matters more than the trust document itself.
What a Florida Trustee Actually Does
Under the Florida Trust Code (Chapter 736), a trustee holds and manages trust property for the benefit of the beneficiaries. While you are alive and well, you typically serve as your own trustee of a revocable trust, keeping full control. The choice that counts is the successor trustee who steps in when you become incapacitated or pass away.
A Florida trustee owes serious fiduciary duties: loyalty to the beneficiaries, impartiality among them, prudent investment, accurate recordkeeping, and regular accountings. Chapter 736 even requires trustees to keep qualified beneficiaries reasonably informed. This is not a ceremonial title; it is a real job with legal accountability.
Family Member, Friend, or Professional?
For the Alvarez family, a relative knew their son and his needs intimately, which is invaluable. But relatives can also lack investment experience, live far away, or be drawn into family conflict. Consider these tradeoffs:
- Family or friend: Personal, low cost, knows your values, but may be unprepared for the administrative and tax work and can feel torn between beneficiaries.
- Corporate trustee (a Florida bank or trust company): Professional, neutral, permanent, and experienced with accountings and investments, but charges an annual fee and can feel impersonal.
- Co-trustees: Pairing a family member with a professional blends personal knowledge with expertise, a popular approach for Palm Beach families with significant assets.
Special Situations Demand Extra Care
A trust for a beneficiary with a disability, a spendthrift child, or a blended family requires a trustee who can say no, follow restrictions, and stay impartial for years or decades. The longer the trust will last, the stronger the case for a professional or corporate successor who will not age out or move away.
Practical Qualities to Look For
Whoever you choose should be trustworthy with money, organized, willing to seek professional help when needed, and able to communicate with beneficiaries. Ask the person before you name them; serving as trustee is a meaningful commitment, and a surprised appointee may decline. Always name a successor or two so the trust is never left without someone at the helm.
The Florida Tax Picture
Good news for Palm Beach residents: Florida has no state estate or inheritance tax, so your trustee’s tax responsibilities are generally limited to fiduciary income tax filings and, for large estates, federal matters. A trustee should still understand basis, distributions, and the duty to invest prudently under Florida’s prudent investor standards.
Consult a Florida Attorney
The right trustee depends on your assets, your beneficiaries, and your family dynamics. A Florida estate planning attorney can help you weigh family versus professional trustees and draft provisions, like trustee removal and successor rules, that fit your goals. This article is general information, not legal advice.
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For more on our Florida practice, see our overview of powers of attorney in Florida. Morgan Legal Group's affiliated New York office also handles .
