Trustee Mismanagement in Fort Lauderdale: Warning Signs
Being named a beneficiary of a trust should bring some peace of mind. Someone took the time to create a legal plan to protect assets and look out for you. But what happens when the person responsible for managing that trust is not doing their job, or worse, is actively misusing their position? Trustee mismanagement is more common than many people realize, and knowing the warning signs can make a real difference.
What Does a Trustee Actually Have to Do?
A trustee in Florida has a long list of legal responsibilities. Under the Florida Trust Code, Chapter 736 of the Florida Statutes, trustees are required to act in good faith, manage trust assets prudently, treat all beneficiaries fairly, keep trust funds separate from their personal finances, and keep beneficiaries informed about the trust. Florida Statute § 736.0813 specifically requires trustees to notify qualified beneficiaries and provide accountings on a regular basis. That last part, the transparency piece, is one of the most important obligations a trustee has, and one of the most commonly ignored.
Red Flags That Something May Be Wrong
So how do you know if a trustee might be mismanaging the trust? Here are some things to watch for:
- You are not receiving regular accountings or updates about the trust’s finances.
- Requests for information or documents are being ignored or brushed off.
- Trust assets seem to be declining in value for no clear reason.
- The trustee appears to be making decisions that benefit themselves rather than the beneficiaries.
- You have discovered the trustee is mixing trust funds with their personal accounts.
- Distributions that should have been made are being delayed or denied without explanation.
- Major trust assets, such as real estate or investments, were sold at prices that seem far below market value.
None of these situations automatically proves wrongdoing, but any one of them is worth taking seriously. A trustee who is operating properly should have no problem being open and transparent about what they are doing with trust assets.
When It Is Time to Talk to an Attorney
If something feels off, it is worth looking into. Beneficiaries have real legal rights under Florida law, including the right to demand accountings and to pursue legal remedies if a trustee has caused harm. The clock can also start ticking quickly on certain claims, so waiting too long could limit your options.
At Edward J. Jennings, P.A., we understand how stressful and personal these situations can be. Our team is here to help you understand where things stand and what your options might be. If you are concerned about trustee conduct in the Fort Lauderdale area, reach out to our Fort Lauderdale trustee duties attorneys to schedule a consultation. Contact us today for a consultation and to learn how we can help you move forward.
Source:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/Sections/0736.0813.html
