Understanding Fiduciary Duty in Florida Estates and Trusts

When a person is unable to manage their affairs or passes away, he or she requires help from another person often steps in to handle their money, property, or personal decisions. That role comes with a powerful—but serious—responsibility known as fiduciary duty. In Florida, fiduciary duty is the legal obligation to act in someone else’s best interest when managing their assets or decisions, either during or after the person’s lifetime.

 

Fiduciary duty is a cornerstone of estate, trust, and guardianship law. It helps protect both assets and people by ensuring power isn’t abused or misused. Whether you’re serving as an executor, trustee, guardian, or agent under a power of attorney, understanding these duties is key to doing the job right—and avoiding personal liability.

 

What Does “Fiduciary” Mean?

A fiduciary is any person who manages money or decisions for someone else. In Florida, this can include several roles:

• Personal representative (executor): Manages the estate of someone who has passed away, paying debts, collecting assets, and distributing property according to the will or Florida intestate law.
• Trustee: Oversees assets held in a trust for beneficiaries, following the terms of the trust and Florida’s Trust Code.
• Agent under power of attorney (POA): Makes financial decisions for another person, known as the principal.
• Guardian: Handles personal and financial affairs for an adult or minor who is legally incapacitated or handles the assets of a minor who inherits from an estate of another person.

Each of these roles carries the same core principle: the fiduciary must always act with honesty, care, and loyalty toward those they serve.

 

The Core Legal Duties

Florida law defines several key responsibilities that fiduciaries must honor. While the specific statutes vary by role, most fiduciaries are guided by four core duties:

1. Loyalty. A fiduciary must act solely in the best interest of the estate, trust, or person they serve. Self-dealing—such as using estate funds for personal gain—is strictly prohibited.
2. Care. Fiduciaries must act prudently, managing finances with the same care that a responsible person would use in their own affairs. This includes keeping good records, obtaining fair values for property, and making thoughtful financial decisions.
3. Impartiality. When multiple beneficiaries are involved, a fiduciary must treat all of them fairly. Favoring one person over another can lead to disputes and potential legal claims.
4. Accountability. Fiduciaries are required to follow the governing documents (like a will or trust) and Florida law. They must also keep beneficiaries informed and provide accountings that detail how assets are managed and distributed.

Failing to follow these principles can lead to a breach of fiduciary duty—a serious legal violation that may result in personal financial liability or removal from the position.

 

Why Fiduciary Duty Matters

For fiduciaries, these duties help maintain integrity and transparency. Following the law protects both their reputation and the assets they manage. For beneficiaries, fiduciary duty provides peace of mind—knowing that their loved one’s estate or trust will be managed honestly and effectively.

When fiduciaries fall short—by mismanaging funds, withholding information, or acting in their own interest—beneficiaries have rights. Under Florida law, they can request financial accountings, petition the court for oversight, or even sue for damages if a fiduciary’s actions cause financial harm.

 In short, fiduciary duty is designed to prevent abuse and safeguard family assets. By understanding and honoring these obligations, fiduciaries reduce conflict, build trust, and ensure assets are used for their intended purpose.

 

Practical Tips for Fiduciaries

If you’ve been named as a personal representative, trustee, or agent under power of attorney, consider these best practices:

• Keep detailed records. Document every transaction and keep receipts, statements, and notes about major decisions.
• Separate funds. Deposit funds and pay expenses in the following manner:
• Never mix personal money with estate, trust, or guardianship or a prinicpal’s funds.
• Do not pay from expenses from your personal funds.
• Pay expenses directly from the bank accounts of the estate, trust, guardianship or the principal of the POA.
• If it is absolutely necessary such as when an estate account has not been opened prior to administration, keep all deposit slips and receipts.
• If you are the trustee of more than one trust, keep the funds separated by depositing money and paying expenses into each separate trust.
• Communicate openly. Regular updates to beneficiaries or interested parties can prevent misunderstandings.
• Seek legal and financial guidance. Fiduciary roles can be complex. Consulting with an experienced estate attorney ensures you stay compliant with Florida law and fulfill your duties correctly.

Protecting Families and Assets

At its core, fiduciary duty ensures that Florida estates and trusts serve their true purpose—protecting loved ones and preserving assets. It holds those in power accountable and promotes confidence in an often‑difficult legal process.

 

Whether you’re a fiduciary managing an estate or a beneficiary seeking clarity, understanding these responsibilities is the first step toward fair, transparent outcomes. For personalized guidance, consulting with the Robyn Lesser Law can help you navigate decisions responsibly and resolve estate matters with confidence.