Understanding a Florida Trustee’s Responsibility to Invest Wisely

– A Florida trustee is legally obligated to invest trust funds prudently and in the best interests of the beneficiaries.
– Florida law, specifically section 518.11 of the Florida Statutes, imposes a duty on trustees to act with care, skill, prudence, and diligence when investing trust assets.
– Trustees must manage trust assets as a prudent investor would, diversifying investments unless it is determined to be against the best interests of the beneficiaries, and considering factors such as total return, tax consequences, and the needs of the beneficiaries.
– Trustees are required to regularly review and monitor the performance of trust investments and act with impartiality, balancing the interests of income and remainder beneficiaries.
– If a trustee breaches their investment duties, beneficiaries have the right to pursue legal remedies in Florida, as provided for in section 736.1001 of the Florida Statutes. 1. Beneficiaries have the right to take legal action if a trustee breaches their duty to invest trust assets responsibly.
2. Trustees must manage trust assets like a prudent investor, including diversifying investments and regularly monitoring performance.
3. If a breach of trust is proven, the court may order the trustee to pay damages and remove them from their position.
4. It’s important for trustees to understand their investment duties and seek professional advice when managing trust assets.

https://www.pfhglaw.com/a-florida-trustees-duty-to-prudently-invest/