BETTEN, MURPHY & WEISS
Attorneys, PA
Brevard's Elder Law Firm
1800 Penn Street, Suite 6
Melbourne, FL 32901-2625
Phone (321) 676-2525
Chapter 737 of Florida Statutes governs administration of trusts and the powers and liabilities of trustees. If the decedent created a revocable trust, in certain circumstances, the trustee may be required to pay expenses of administration of the decedent's estate and enforceable claims of the decedent's creditors. In any event, the trustee is required to file a "notice of trust" with the court where the decedent lived, giving information concerning the settlor and trustee.
Often the settlor will name himself as trustee of his revocable trust and convey his property to himself as trustee. Florida law recognizes that the successor trustee, after the death of the settlor of a revocable trust, has the power, if given in the trust agreement, to transfer title to property held in trust to a beneficiary of the trust pursuant to instructions in the trust agreement or to a purchaser from the trustee. However, the trustee remains liable to the extent of the trust property at the time of settlor's death, and a reasonable return thereon, for claims of creditors, costs of administration in probate, and estate taxes to the extent that the probate estate has insufficient assets.
Since trust administration under the supervision of the probate court is not automatically required in order to pass title to the beneficiaries, a revocable trust can reduce probate expenses in simple uncontested distributions of the deceased settlor's property.