Can Trust Beneficiaries Waive Their Right to an Accounting?
- Trust beneficiaries in Florida have the right to receive annual accountings from trustees.
- Beneficiaries can waive formal accountings, but any waiver must be in writing.
- Informal accountings can provide the same information as formal ones, potentially saving costs.
In Florida, a qualified beneficiary has the ability to waive their right to an accounting. Provided the waiver of accounting must be in writing.
Although trustees have a mandatory duty to account to qualified beneficiaries under Florida’s Trust Code,trust beneficiaries can waive their right to accountingrequirements if they wish to do so.
In Florida, trustees must provide trust accountings to each qualified beneficiary at least annually. See FL Stat. § 736.0813(1)(d)
Generally, trustees and theirTrust AdministrationAttorneys appreciate this particular section of Florida’s Trust Code because it allows them to compile a report that not only answers many questions posed by beneficiaries but also complies with Florida law and any disclosure requirements imposed thereunder.
The purpose of this law is to provide beneficiaries with full disclosure of the transactions that occurred during theadministration of the trust in Floridaand provide them with an opportunity to raise any questions or objections they may have relating thereto.
But what happens when you’re a beneficiary and you don’t have any questions as to how the trustee is administering the trust?
Or you’d like to know what transactions occurred, but you’d like to save the expense associated with having a fiduciary accounting prepared by a qualified Estate Tax Planning Attorney (which can range from $2,000.00- $10,000.00+)?
From a practical standpoint, we hear of many instances where a trust beneficiary may wish to waive his or her right to a formal accounting.
Generally, an “informal” accounting can be prepared in-house which discloses the same information as a formal fiduciary accounting, namely all transactions that occurred during the administration of the trust, along with administrative expenses, professional fees and costs, anticipated tax liability, and the like.
This is provided to beneficiaries who are then allowed to waive the “formal” fiduciary accounting and allow the trustee to proceed with distributions as disclosed in the informal accounting.
It is important to understand that any such waiver is entirely permissive, as beneficiaries are legally entitled to accountings under Florida’s Trust Code.
To be valid, any waiver of accounting must be in writing. Waivers may be later withdrawn in writing, although any such withdrawal of a prior waiver is effective only to account for future periods. See FL Stat. § 736.0813(2).
Serving in therole of trusteecan be incredibly challenging and complex, especially for an individual grieving the loss of a loved one or navigating difficult family dynamics.
Several duties and obligations must be undertaken, and failing to do so could open the trustee up to personal financial liability.
Under the terms of most trust agreements, trustees are entitled to hire attorneys to assist with their Trust Administration, and the legal fees are paid for out of the trust assets, not the trustee’s account. Here at e-Estates and Trusts, PLLC, we have years of experience guiding trustees through the administration process. Don’t go it alone… we welcome you to schedule a consultation with one of our experienced probate and trust administration attorneys.
Useful Resources:
- As a Trust Beneficiary, Can you Contest a Trust
- Worried about what will happen to your safety deposit box once you are gone
Frequently Asked Questions:
Does the trustee have to provide accounting in Florida?
- The Florida Trust Code, Section 736.0813 provides the Duty To Account to Qualified Beneficiaries.
- As per the Florida Trust Code, Trust beneficiaries in Florida have the right to receive annual accountings from trustees.
What is a waiver of accounting in probate Florida?
A waiver of accounting in probate in Florida is a legal document signed by the beneficiaries, waiving their right to receive detailed financial reports from the executor or personal representative regarding the estate's assets, expenses, and distribution.Can a trustee be a beneficiary in Florida?,
Yes, a trustee can also be a beneficiary in Florida. However, they must carry out their fiduciary duties impartially, ensure fair treatment of all beneficiaries and avoid conflicts of interest between their roles as trustee and beneficiary.What are Florida trust accounting requirements?
In Florida, trustees must maintain accurate records of all trust transactions, including income, expenses, and distributions. They must provide regular accounting to the beneficiaries, detailing the financial activities of the trust, usually annually and at trust termination, following the terms of the Florida Trust Code.who is a qualified beneficiary in florida?
In Florida, a qualified beneficiary is a person who is currently entitled to receive distributions from the trust or would be entitled to receive distributions if the trust is terminated. This generally includes the current beneficiaries, remainder beneficiaries, and certain heirs of the deceased beneficiaries.Disclosure: The information contained in this website and blog is general and is not intended in any way to answer individual legal questions. If you have a legal question concerning your circumstances, please contact our firm to schedule a conference with one of our experienced attorneys. Your review of information from this website or blog does not create an attorney-client relationship, nor any legal privileges relating thereto.
