How Does a Florida Trust Beneficiary Challenge a Trustee’s Decisions?

Unlike probate estates, Florida trusts are generally not subject to ongoing court supervision. A trust is effectively a private matter between the settlor–the person who creates the trust–the trustee, and the beneficiaries. Of course, legal disputes can and do arise over the administration of a trust. For example, a beneficiary may wish to challenge a trustee’s decisions with respect to the distribution of the trust’s assets.

Probate Court Rejects “Emergency Petition” Against Trustees

Under Florida law, an interested person who wishes to initiate a judicial proceedings concerning a trust must normally do so by filing a formal complaint, i.e., a civil lawsuit. There are a couple of exceptions. For instance, if the trust was created under the terms of the settlor’s will, any dispute over the construction of that trust must be resolved as part of the probate proceeding for the will. A separate lawsuit against the trust is not required.

But generally speaking, there needs to be a separate civil complaint. A recent decision from the Florida Fourth District Court of Appeals, Johnson v. Marcus, provides an apt illustration. This case involved a trust created by a now-deceased settlor for the benefit of his daughter. The trust named the settlor’s brother and attorney as co-trustees. As co-trustees, they had absolute discretion over the distribution of trust funds to the daughter.

The father’s death triggered a separate probate proceeding for his will. The daughter filed what she described as an “emergency petition” in the probate case. She sought a court order compelling the co-trustees to use trust funds to pay for her health insurance and other expenses.

The probate court denied the petition. The Fourth District upheld that decision. The appellate court explained that an “emergency petition” was not a proper means of seeking relief against the co-trustees. As previously discussed, Florida law requires an interested person to file a civil complaint separate from any probate proceeding. This was not a case where one of the exceptions applied.

To be clear, neither the probate judge nor the Court of Appeal passed any judgment on the merits of the daughter’s claim against the trust. The issue here went to jurisdiction. In simple terms, because the daughter failed to file a proper complaint, the probate court had no jurisdiction to hear the case or grant any relief. The Court of Appeal’s decision did not prevent the daughter from filing such a lawsuit and proceeding with her claims.

Contact a Florida Trust Litigation Attorney Today

Trust litigation often involves complex questions of Florida law. That is why it is important to always work with an experienced Pompano Beach trust litigation attorney. Whether you are a trustee, a beneficiary, or any other person interested in the administration of a trust, experienced legal counsel can help ensure your case receives a full and fair hearing in court. If you need to speak with a lawyer, contact the offices of Mark R. Manceri, P.A., today to schedule a consultation.

Sources:

flsenate.gov/Laws/Statutes/2023/0736.0201

scholar.google.com/scholar_case?case=12434231632459116572