Trust administration after the grantor dies in Florida is the legal process by which a successor trustee gathers the deceased grantor’s trust assets, notifies beneficiaries, pays valid debts and taxes, and distributes what remains according to the trust’s terms. When a revocable living trust’s creator dies, the trust becomes irrevocable, and the successor trustee steps into a fiduciary role governed primarily by the Florida Trust Code, Chapter 736. Done correctly, it lets a family avoid the worst of probate court while still satisfying creditors and the IRS; done carelessly, it exposes the trustee to personal liability.
If you have just been named successor trustee for a parent or spouse who owned a home on Long Island and a winter place in Florida, the practical questions come fast. What do I do first? Who am I required to tell? Can I sell the house? This guide walks through the Florida side of that process the way I would explain it across a conference table.
What “trust administration” actually means after death
A revocable living trust is a flexible document while the grantor (Florida law calls this person the “settlor”) is alive. The settlor can amend it, revoke it, or move assets in and out at will. That freedom ends at death. At the moment the settlor dies, the trust snaps shut and becomes irrevocable, and the successor trustee named in the document takes over.
Administration is not a single event. It is a sequence of fiduciary tasks that, for a straightforward estate, often runs four to twelve months, and longer if a federal estate tax return is required or if real estate has to be sold. The trustee owes duties of loyalty, impartiality, and prudence to the beneficiaries, and Florida courts take those duties seriously.
The successor trustee’s first steps in Florida
Before any money moves, get organized. The early decisions set the tone for the entire administration.
- Locate and read the trust instrument in full, along with any amendments. The document, not your assumptions, controls who gets what and when.
- Obtain certified death certificates. Order several; banks, title companies, and the IRS will each want one.
- Secure the assets. Change locks if needed, confirm property insurance stays in force, and freeze accounts from unauthorized withdrawals.
- Get an EIN for the trust from the IRS. Once the trust is irrevocable it can no longer use the deceased grantor’s Social Security number.
- Inventory and value the assets as of the date of death. Date-of-death values matter for the step-up in cost basis and for any estate tax filing.
Resist the urge to distribute anything early, even to yourself. Premature distributions before debts, expenses, and taxes are accounted for are one of the most common ways a well-meaning trustee ends up writing a personal check to cover a shortfall.
The 60-day notice every Florida trustee owes
This is the obligation that surprises most new trustees. Under Florida Statutes section 736.0813, once a formerly revocable trust becomes irrevocable because the settlor has died, the trustee must notify the qualified beneficiaries within 60 days. The notice is not a formality you can skip; it triggers important rights and timelines.
The written notice must tell qualified beneficiaries:
- That the trust exists, and the identity of the settlor;
- That they have the right to request a complete copy of the trust instrument;
- That they are entitled to relevant information about the trust assets and to a trust accounting; and
- That, under section 736.0813(6), there is a fiduciary lawyer-client privilege between the trustee and any attorney the trustee employs.
A “qualified beneficiary” is broader than the people who will actually receive money. It generally includes current beneficiaries and certain remainder beneficiaries who would take if the trust terminated. When in doubt, give notice; the cost of over-notifying is small compared with the cost of a beneficiary later claiming they were kept in the dark.
Duty to account: section 736.08135
Transparency does not end with the initial notice. Under section 736.08135, a trustee of an irrevocable trust must provide a trust accounting to each qualified beneficiary at least annually, and on termination of the trust or a change of trustee. The accounting has to be a reasonably understandable report that identifies the trust, the trustee, and the period covered, and that shows the significant transactions, receipts, disbursements, and the allocation between income and principal where that allocation affects a beneficiary’s interest.
Beneficiaries can waive the right to an accounting in writing, and they can later withdraw that waiver. In practice, a clear, professional accounting is the trustee’s best defense. If a dispute ever lands in court, contemporaneous records of every dollar in and out are what protect you.
Handling creditors, expenses, and estate taxes
A common myth is that putting assets in a trust makes them untouchable by the deceased person’s creditors. It does not. Florida built a mechanism to make sure legitimate debts get paid even when assets pass through a revocable trust.
Under section 736.05053, if the probate estate is insufficient, the trustee must pay the personal representative of the settlor’s estate the amounts the personal representative certifies in writing are needed to cover administration expenses and the obligations of the estate. In other words, the formerly revocable trust stands behind the estate for valid claims. This is why coordination between the trustee and the probate side matters, and why the section 733.2121 notice to creditors and the resulting claims deadlines affect trust administration even when no full probate is opened.
On the tax side, the trustee should consider:
- Final individual income tax return for the deceased grantor (Form 1040).
- Fiduciary income tax returns for the trust (Form 1041) for income earned after death.
- Federal estate tax return (Form 706) only if the estate exceeds the federal exemption, which is indexed and changes by year. Florida has no separate state estate or inheritance tax.
Because the exemption figure shifts, confirm the current threshold with your CPA or attorney rather than relying on a number you read somewhere last year. The deadline for Form 706, when required, is nine months after death, with a possible six-month extension.
The homestead and out-of-state real estate problem
This is where families with property in two states get tripped up, and it is squarely the issue many of our readers face. Florida’s homestead protections are powerful and unusual. A Florida homestead is shielded from most creditors, and it passes under special constitutional rules that can override a trust if a surviving spouse or minor children are involved. A successor trustee dealing with a Florida home should never assume the home simply flows through the trust like a bank account; the homestead character of the property can change how, and to whom, it must pass.
Equally important: a trust avoids probate only in the state where the trust holds title. If your relative owned a Long Island home in their individual name and a Florida condo in the trust, you may face a New York probate for the New York house even while you administer the Florida trust. The cleaner approach during life is to make sure each property is correctly titled. New York owners weighing how to hold a home should look at strategies like , which can keep a residence out of probate without surrendering control during life.
If you are administering a Florida trust now but realize the New York side of the family’s planning was never finished, that gap is worth closing for everyone still living. A coordinated plan, including an up-to-date , prevents the next administration from being harder than this one. For the Florida assets themselves, an attorney who handles estate planning in Florida can confirm whether the homestead and any retained-life-estate deeds were set up to do what the family intended.
Distributing the trust and closing administration
Only after notice, accounting, creditor claims, and taxes are addressed should the trustee distribute the remaining assets according to the trust’s terms. Best practices at this stage:
- Get receipts and releases from beneficiaries acknowledging what they received.
- Reserve funds for any final tax bills or late-arriving expenses before the final distribution.
- Provide a final accounting so every beneficiary sees the complete picture before the trust closes.
- Retain records for several years; questions can surface long after the checks clear.
Specific gifts (a named bank account, a piece of jewelry, the condo to one child) generally go out before the residuary is split. Where the document gives the trustee discretion, exercise it consistently and document your reasoning.
Should you hire a Florida attorney?
Serving as a successor trustee is a legal job, not just a clerical one. You can be held personally liable for missteps, from a late 60-day notice to an improper distribution that leaves a creditor unpaid. For a small, all-cash trust with cooperative beneficiaries, a trustee can sometimes manage with light professional guidance. The moment you see Florida real estate, a homestead, a possible estate tax return, blended families, or a beneficiary who is unhappy, get a Florida trust administration attorney involved early. The fee is almost always smaller than the cost of fixing a fiduciary mistake after the fact.
If you are weighing your own estate plan rather than administering someone else’s, start with our overview of wills and trusts, or learn how the court process differs by reading about Florida probate. When you are ready to talk through a specific situation, contact our office for a consultation.
This article is general information about Florida law and is not legal advice. Trust administration depends on the exact terms of the trust and the facts of each estate. Consult a licensed Florida attorney about your situation.
Frequently Asked Questions
How long does trust administration take in Florida after the grantor dies?
A straightforward revocable trust often takes four to twelve months to administer. Timelines stretch when real estate must be sold, when beneficiaries dispute decisions, or when a federal estate tax return (Form 706) is required, since that return is due nine months after death and the trust generally cannot fully distribute until tax exposure is resolved.
What is the 60-day notice a Florida trustee has to give?
Under Florida Statutes section 736.0813, once a revocable trust becomes irrevocable because the settlor died, the trustee must notify qualified beneficiaries within 60 days. The notice must disclose that the trust exists, identify the settlor, and inform beneficiaries of their right to request a copy of the trust instrument and to receive accountings.
Can a trust protect Florida assets from the deceased person's creditors?
Not entirely. Under section 736.05053, if the probate estate is insufficient, the trustee must use trust assets to pay valid administration expenses and estate obligations certified by the personal representative. A trustee who distributes to beneficiaries before satisfying legitimate creditor claims can become personally liable.
Does a Florida trust avoid probate for a home located in New York?
No. A trust only avoids probate in the state where the trust holds title to the property. If a relative’s New York home was titled in their individual name rather than the trust, a New York probate may still be required even while you administer the Florida trust. Coordinating titling across states during life prevents this.
Is a trust accounting required in Florida?
Yes. Under section 736.08135, the trustee of an irrevocable trust must provide a reasonably understandable accounting to each qualified beneficiary at least annually and on termination. Beneficiaries may waive this right in writing, but a clear accounting is the trustee’s strongest protection if a dispute arises.
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