Florida Trust Administration
After Death: Successor Trustee Guide

A revocable living trust is widely promoted as a probate avoidance tool — and it is. But what many Floridians do not fully appreciate is that avoiding probate does not mean avoiding administration. When the grantor of a Florida trust dies, the successor trustee must carry out a structured legal and financial process governed by the Florida Trust Code (F.S. Chapter 736). Done incorrectly, the trustee can be held personally liable to beneficiaries.

This guide walks through every step of Florida trust administration — from the moment of death through final distribution — so successor trustees and beneficiaries know what to expect.

Step 1: Immediately After the Grantor's Death

The successor trustee's authority becomes effective at the moment of the grantor's death (or upon incapacity, for a trust that grants incapacity-triggered trusteeship). The first priority is gathering the documents and information needed to proceed:

• Obtain at least 10–15 certified copies of the death certificate — banks, financial institutions, the DMV, and the IRS each require an original certified copy
• Locate the original trust document and all amendments (restatements, amendments)
• Locate the pour-over will — which directs any probate assets into the trust and may need to be probated separately
• Identify all trust assets — real property, bank and brokerage accounts, retirement accounts, life insurance, business interests, personal property
• Identify the decedent's debts and expenses — mortgages, credit cards, medical bills, income taxes owed

Step 2: Notice of Trust — The 60-Day Deadline

Under F.S. § 736.05055, the successor trustee must file a Notice of Trust with the probate court of the county where the decedent was domiciled at death. This must be done within 60 days of the grantor's death.

The Notice of Trust is a simple document that informs the court (and the public) that:

• A trust existed
• The grantor has died
• The trustee's name and address
• The trust's name and date

This notice triggers the creditor claim window. Any creditor who fails to file a timely claim may be barred from collecting from trust assets. Failure to file the Notice of Trust does not invalidate the trust, but it can expose the trustee to personal liability and may extend the period during which creditors can make claims.

Step 3: Notice to Beneficiaries and Heirs

Under F.S. § 736.0813, within 60 days of assuming trusteeship, the successor trustee must provide written notice to each qualified beneficiary — meaning all current and remainder beneficiaries — including:

• The trustee's name and contact information
• A statement that the beneficiary has a right to receive a copy of the trust document
• Notice that the trust has become irrevocable (revocable trusts become irrevocable at the grantor's death)

Any qualified beneficiary who requests a copy of the trust is entitled to receive it. The trustee cannot conceal the trust document from beneficiaries.

Step 4: Inventory and Appraise Trust Assets

The trustee must identify and take control of all trust assets. This includes:

• Real property — review the deed to confirm the property is titled in the trust's name; arrange for appraisals to establish the date-of-death fair market value (which sets the new cost basis under IRC § 1014)
• Financial accounts — present certified death certificate and trust certification to financial institutions; retitle accounts under the trust's EIN
• Retirement accounts and IRAs — these are typically not trust assets (they pass by beneficiary designation) but must be coordinated as part of the overall settlement
• Life insurance — file death claims with each insurer; proceeds flow to named beneficiaries, not typically the trust
• Business interests — LLC membership interests, stock, partnerships may require a business valuation for estate tax purposes
• Personal property — vehicles, jewelry, art, collectibles; tangible personal property may require separate transfer steps

Step 5: Obtain a Federal Tax ID (EIN) for the Trust

A revocable living trust uses the grantor's Social Security number during the grantor's lifetime. At death, the trust becomes irrevocable and must obtain its own Federal Employer Identification Number (EIN) from the IRS. All income earned by trust assets after the date of death is reported under this EIN on the trust's income tax return (Form 1041).

The EIN can be obtained online through the IRS website — typically in minutes — or through an attorney's office. Financial institutions will require the trust's EIN before retitling accounts.

Step 6: Pay Debts, Expenses, and Taxes

Before distributing trust assets to beneficiaries, the trustee must identify and pay all valid claims in the proper order:

1. Cost of administration — trustee fees, attorney fees, accounting fees
2. Funeral and burial expenses
3. Debts secured by specific property — mortgages, car loans (paid from proceeds of that property)
4. Federal and state taxes owed — income taxes for the final year, estate taxes if applicable
5. All other valid creditor claims

Florida has a creditor claim window tied to the Notice of Trust. Creditors who receive actual notice have 30 days after receiving notice (or 3 months after publication, whichever is later) to file a claim. The trustee should not make final distributions until this window has closed and all known claims have been resolved.

Federal Estate Tax — Is It Required?

A federal estate tax return (Form 706) must be filed if the gross estate exceeds the applicable exemption — $13.99 million per individual in 2025 (indexed for inflation). The federal estate tax rate on amounts above the exemption is 40%. The return is due 9 months after the date of death, with a 6-month extension available. Even if no estate tax is owed, trustees of larger estates often file Form 706 to make the portability election — preserving the deceased spouse's unused exemption for the surviving spouse.

Step 7: Trust Accounting and Disclosure to Beneficiaries

Under F.S. § 736.08135, the trustee has a duty to account to the beneficiaries annually and at the termination of the trust. The accounting must show:

• All trust assets at the start of the accounting period
• All income received, gains and losses on investments
• All disbursements — expenses, debt payments, distributions
• All trust assets at the end of the accounting period

Beneficiaries have 6 months to object to the accounting after receiving it. After this window, the trustee is generally protected from surcharge claims related to matters disclosed in the accounting.

Step 8: Distribute Assets and Close the Trust

Once debts are paid, taxes are settled, and the objection period on the final accounting has run, the trustee can distribute assets to beneficiaries per the trust's terms. Best practices include:

• Obtain a receipt and release from each beneficiary acknowledging receipt of their share and releasing the trustee from further liability for matters disclosed in the accounting
• Transfer real property by executing and recording a trustee's deed to the beneficiary or buyer
• Retain a reserve for any unpaid taxes, outstanding creditor issues, or pending lawsuits before distributing the final residue
• File the final trust income tax return (Form 1041) for the year in which the trust terminates

Florida Trust Administration Timeline

This article is for general informational purposes and does not constitute legal advice. Trust administration involves complex legal and tax requirements specific to each trust and estate. Consult a licensed Florida attorney before taking action as a successor trustee. Arthur Simpson, Esq. is licensed to practice law in the State of Florida.