Fla. Stat. § 736.0707 - Commentary to Florida Trust Code

Legal Commentary on Fla. Stat. § 736.0707

Fla. Stat. § 736.0707 explains the authority and duty of a former trustee who still holds trust assets in said former trustee’s possession. Generally, a former trustee must deliver all trust property to a co-trustee, new trustee, or (if appropriate) trust beneficiary within a reasonable period of time. However, the trustee may retain a reasonable reserve for the payment of debts, expenses, and taxes. If there was no co-trustee in place when the former trustee ceased to serve as trustee, then the former trustee continues to have “the duties of a trustee and the powers necessary to protect the trust property.” This phrase is likely a reference to Part VIII of the Florida Trust Code, entitled “DUTIES AND POWERS OF TRUSTEE.” Thus, a former trustee acting in a custodial role over trust assets likely retains the duties and powers listed under Part VIII, as required to “protect the trust property.”

If there was no co-trustee in place when the former trustee ceased to serve as trustee, then the former trustee has no remaining powers or duty regarding the trusteeship. In that case, the former trustee should simply turn over the trust assets to the co-trustee as soon as is reasonable.

Text of Fla. Stat. § 736.0707

Delivery of property by former trustee.—

(1) Unless a cotrustee remains in office or the court otherwise orders and until the trust property is delivered to a successor trustee or other person entitled to the property, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.

(2) A trustee who has resigned or been removed shall within a reasonable time deliver the trust property within the trustee’s possession to the cotrustee, successor trustee, or other person entitled to the property, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes. The provisions of this subsection are in addition to and are not in derogation of the rights of a removed or resigning trustee under the common law.

History of Fla. Stat. § 736.0707

Fla. Stat. § 736.0707 became law on July 1, 2007 as part of the Florida Trust Code. It has not been amended or revised since that date.

Fla. Stat. § 736.0707 is based on § 707 of the Uniform Trust Code. However, the final half of Fla. Stat. § 736.0707(2) was added to § 707. That added portion reads:

…subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes. The provisions of this subsection are in addition to and are not in derogation of the rights of a removed or resigning trustee under the common law.

This article is part of the PTM Legal Commentary to the Florida Trust Code. Click here to navigate through the entire commentary.