What is a Florida Beneficiary’s Right to Trust Accounting?

By Phil Rarick, Weston Trust Attorney, and Jasmine Benitez, Legal Assistant

In Florida, qualified beneficiaries of a trust have a legal right to receive an accounting from the trustee. This accounting is a detailed report of the trust’s financial activities, including income, expenses, distributions, and the status of trust assets. It ensures transparency and helps beneficiaries verify that the trustee is managing the trust according to Florida law.

Note: Unless you waive your right to an accounting, the Trustee has a duty to provide an accounting to all qualified beneficiaries. This accounting must comply with F.S. 736.0813. Among other things, the trustee must disclose his or her fees and costs charged to the trust.

What is Trust Accounting?

A trust accounting typically includes:

Income: Dividends, interest, or rent generated by the trust.
Expenditures: Distributions to beneficiaries, trustee fees, CPA fees, and administrative costs.
Investments: Records of any asset purchases or sales.
Balances: Beginning and ending balances for the accounting period.

This report gives beneficiaries critical insight into how the trustee is managing the trust.

Florida Law on Beneficiary Rights

Under Florida Statutes Section 736.1008, qualified beneficiaries have the right to request an accounting at any time. Trustees must provide this accounting within a reasonable period upon request.

What Happens if a Trustee Fails to Provide an Accounting?

If a trustee does not provide an accounting, beneficiaries can:

Request one in writing.
Petition the court to compel the trustee to provide the accounting.
Seek the removal of the trustee.

Why is Trust Accounting Important?

An accounting ensures that:

The trust is being managed properly and in line with the grantor’s intent.
Beneficiaries can verify that distributions and expenses are legitimate.
Potential issues, such as mismanagement, can be addressed early.
The trustee’s fees and costs are reasonable.

Conclusion

A qualified beneficiary’s right to trust accounting is a key protection under Florida law, ensuring transparency and accountability. If you are a qualified beneficiary and believe the trustee is not fulfilling their duties, consult an estate planning attorney to understand your options. If you are a trustee, do not try to administer the trust without an experienced Miami trust attorney. For more information about Trust Administration, see our guide: Practical Tips For The Florida Trustee.

For more information, contact Phil Rarick, Weston Trust Attorney, at info@raricklaw.com.

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Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on the information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an attorney who is experienced in Florida trust law. Your receipt of information from this website, blog, or Miami trust attorney does not create an attorney-client relationship and the legal privileges inherent therein.