Fla. Stat. § 736.0811 - Commentary to Florida Trust Code

Legal Commentary on Fla. Stat. § 736.0811

Fla. Stat. § 736.0811 establishes that a trustee has a duty to “take reasonable steps” to (1) enforce the claims of a trust and (2) defend claims against the trust. The words “take reasonable steps” indicate that there are situations in which a trustee may potentially find the enforcement or defense of claims to be unreasonable. For example, if a trust has a potential claim against a debtor who refuses to pay a disputed debt of $18.43 to the trust, the trustee may reasonably determine that the expense of a lawsuit against the debtor does not justify the potential reward. Similarly, if a trustee determines that settlement of a claim against a trust will likely result in a better outcome for the beneficiaries than defending against that claim, then a trustee may reasonably decide to cease defending the trust and settle instead. See Fla. Stat. § 736.0816(14). The key is that these decisions must be “reasonable” and for the benefit of the beneficiaries (not for the benefit of the trustee). Simply refusing to pursue a claim belonging to the trust for personal reasons would very likely be a breach of the duty established under Fla. Stat. § 736.0811.

Text of Fla. Stat. § 736.0811

Enforcement and defense of claims.—A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.

History of Fla. Stat. § 736.0811

Fla. Stat. § 736.0811 became law on July 1, 2007 as part of the Florida Trust Code. It has not been amended or revised since that date.

The text of Fla. Stat. § 736.0811 is taken word-for-word from § 811 of the Uniform Trust Code.

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