Florida/Georgia Personal Injury & Workers Compensation

...benefited one of the trustees, the decedent’s niece. In this case, however, Hilgendorf did not sue for the violation of a specific provision of the trust. She only sought an accounting, which was not required by the trust or any statute. In fact, section 736.0813, Florida Statutes (2012), 1 which *1265 provides for the duty of the trustee to provide trust accountings to qualified beneficiaries, specifically does not apply while a trust is revocable: “As provided in s....

...And after her death, the estate was a beneficiary to the extent that the trust was to pay for the expenses of administration which had gone unpaid. Therefore, the. trustees had breached a provision of the trust. Finally, Carvel was decided prior to the enactment of section 736.0813, Florida Statutes, which limits the duty to account....

...MAY, J., and ARTAU, EDWARD L., Associate Judge, concur. . This statute was not in effect when the trust was created and by its terms only “applies to trust accountings rendered for accounting pe *1265 riods beginning on or after July 1, 2007.” § 736.0813(5), Fla....

...It is undisputed that before suit was filed, Corya had not prepared accountings for any of the trusts. At trial and on appeal, Corya agreed she was required to provide annual accountings to the beneficiaries as of July 1, 2007, the effective date of section 736.0813(1)(d), Florida Statutes (2007), which provides: Duty to inform and account.--The trustee shall keep the qualified beneficiaries of the trust reasonably informed of the trust and its administration. (1) The trustee’s duty to inform and account includes, but is not limited to, the following: .... (d) A trustee of an irrevocable trust shall provide a trust accounting, as set forth in s. 736.08135, to each qualified beneficiary annually and on termination of the trust or on change of the trustee. 4 Corya disputed that she had a duty to give accountings to Sanders for the year...

...duty to provide accountings for the prior years. Prior to July 1, 2007, the statute controlling the duty of a trustee of an irrevocable trust to account to beneficiaries was section 737.303, Florida Statutes (2006), repealed the same year that section 736.0813 was passed. Comparing section 736.0813 with section 737.303, it is obvious that the duty of a trustee to account for an irrevocable trust from 1974 (the year in which section 737.303 was enacted) to June 30, 2007, was virtually identical to the duty to account starting July 1, 2007....

...of the trust and its administration. In addition: .... (3) A beneficiary is entitled to a statement of the accounts of the trust annually and on termination of the trust or change of beneficiary. Although the current section 736.0813 limits the duty to account to “qualified beneficiaries,” the definition of “qualified beneficiaries” is virtually the same as the definition of “beneficiary” and “vested beneficiary,” as interpreted by case law, in the repealed section 737.303. See §§ 736.0103(14), Fla....

...As to each trust, the trial court ordered accountings from the inception of the trust. It appears from the judgment that the trial court accepted Sanders’s arguments that accountings from inception were appropriate based on (1) an interpretation of sections 736.0813(1)(d) and 736.08135(1), Florida Statutes (2007), and (2) misconduct by Corya as trustee, citing Mesler v. Holly, 318 So. 2d 530 (Fla. 2d DCA 1975). We address each argument in turn. Sections 736.0813(1)(d) and 736.08135(1) At the beginning of the judgment, the trial court listed the issues to be tried. One of the issues listed was: Whether Florida Statute Section 736.0813, formerly Florida Statute Section 733.035, limits the accountings to a period beginning on or after January 1, 2003.[8] Section 736.0813 incorporates by reference section 736.08135(1), Florida Statutes (2007). In reference to the John Corya Irrevocable Trust, the trial court ruled “the accounting should go back to when [Corya] became accountable, which would be the inception of the trust,” citing section 736.08135(1), Florida Statutes (2007). It appears the trial court may have implicitly reached the same conclusion as to the other three trusts. As discussed above, section 736.0813(1)(d) provides that a beneficiary is entitled to a trust accounting “annually,” “as set forth in s. 736.08135.” Section 736.08135(1), Florida Statutes, provides: (1) A trust accounting must be a reasonably understandable report from the date of the last accounting or, if none, from the date on which the trustee became accountable, that adequ...

...y discloses the information required in subsection (2). (emphasis added). Because accountings had never been prepared for any of the trusts, the trial court concluded Corya was statutorily required to 8 The correct statutory references are section 736.08135(1) and section 737.3035(1) (now repealed), respectively. Section 736.08135(1) was formerly section 737.3035(1). 9 start the accountings for each trust from the dates Corya became trustee, which was the inception of each trust....

...However, the trial court erred because, as discussed above, the trial court failed to properly apply the laches defense, which limits the duty to account to no earlier than four years prior to the date suit was filed, and because another subsection of section 736.08135, subsection (3), does not require accountings prior to January 1, 2003.9 Section 736.08135(3), Florida Statutes (2007), states: This section applies to all trust accountings rendered for any accounting periods beginning on or after January 1, 2003. (emphasis added). Because section 736.08135 became effective on July 1, 2007, we construe the combination of subsections (1) and (3) to be a clear legislative statement that trustees of irrevocable trusts could not be statutorily required to render accountings prior to January 1, 2003. In other words, we construe section 736.08135(3) to be consistent with statutory laches under section 95.11(6)....

...d fiduciary duties. Instead, we construe that language as limiting the beginning period for the first accounting, in situations where an accounting had never been done or was not prepared annually, to be no earlier than January 1, 2003, as stated in section 736.08135(3), Florida Statutes (2007). To construe the statutory language as the trial court did would result in an impermissible statutory impairment on the obligations of contracts. When Corya accepted the duties and responsibilities of...

...The Sanders and Rich 9 Because it was not briefed, we do not address whether the annual accountings should have been on a calendar-year basis (in which case the accounting for the initial calendar year may be for less than a twelve-month period, depending on what month suit was filed) or on a twelve-month basis. Section 736.0813(1)(d), which creates the statutory duty to account, simply provides accountings must be at least annually. 10 Trusts imposed no requirement for the trustee to account to the beneficiaries....

...Since the trust had an express provision which did not require an accounting to Sanders, the trustee was not compelled to furnish an accounting until the enactment of section 736.0105(2)(s), Florida Statutes, in 2007. That statute provided that a trust provision could not prevail over the duty to account pursuant to section 736.0813(1)(c) and (d)....

...The court found in favor of the daughters and Hadassah appealed. 1 Having the rights of a qualified beneficiary of a trust is important because under the FTC, a trustee is only required to "inform and account" to a trust's qualified beneficiaries. § 736.0813, Fla....

...The court found in favor of the daughters and Hadassah appealed. 1 Having the rights of a qualified beneficiary of a trust is important because under the FTC, a trustee is only required to "inform and account" to a trust's qualified beneficiaries. § 736.0813, Fla....

...The court found in favor of the daughters and Hadassah appealed. 1 Having the rights of a qualified beneficiary of a trust is important because under the FTC, a trustee is only required to “inform and account” to a trust’s qualified beneficiaries. § 736.0813, Fla....

...It is undisputed that before suit was filed, Corya had not prepared accountings for any of the trusts. At trial and on appeal, Corya agreed she was required to provide annual accountings to the beneficiaries as of July 1, 2007, the effective date of section 736.0813(1)(d), Florida Statutes (2007), which provides: 4  Duty to inform and account.--The trustee shall keep the qualified beneficiaries of the trust reasonably informed of the trust and its administration. (1) The trustee’s duty to inform and account includes, but is not limited to, the following: .... (d) A trustee of an irrevocable trust shall provide a trust accounting, as set forth in s. 736.08135, to each qualified beneficiary annually and on termination of the trust or on change of the trustee. Corya disputed that she had a duty to give accountings to Sanders for the years preceding 2007, contending there was no sta...

...duty to provide accountings for the prior years. Prior to July 1, 2007, the statute controlling the duty of a trustee of an irrevocable trust to account to beneficiaries was section 737.303, Florida Statutes (2006), repealed the same year that section 736.0813 was passed. Comparing section 736.0813 with section 737.303, it is obvious that the duty of a trustee to account for an irrevocable trust from 1974 (the year in which section 737.303 was enacted) to June 30, 2007, was virtually identical to the duty to account starting July 1, 2007....

...of the trust and its administration. In addition: .... (3) A beneficiary is entitled to a statement of the accounts of the trust annually and on termination of the trust or change of beneficiary. Although the current section 736.0813 limits the duty to account to “qualified beneficiaries,” the definition of “qualified beneficiaries” is virtually the same as the definition of “beneficiary” and “vested 5 bene...

...As to each trust, the trial court ordered accountings from the inception of the trust. It appears from the judgment that the trial court accepted Sanders’s arguments that accountings from inception were appropriate based on (1) an interpretation of sections 736.0813(1)(d) and 736.08135(1), Florida Statutes (2007), and (2) misconduct by Corya as trustee, citing Mesler v. Holly, 318 So. 2d 530 (Fla. 2d DCA 1975). We address each argument in turn. Sections 736.0813(1)(d) and 736.08135(1) At the beginning of the judgment, the trial court listed the issues to be tried. One of the issues listed was: Whether Florida Statute Section 736.0813, formerly Florida Statute Section 733.035, limits the accountings to a period beginning on or after January 1, 2003.[9] Section 736.0813 incorporates by reference section 736.08135(1), Florida Statutes (2007). In reference to the John Corya Irrevocable Trust, the trial court ruled “the accounting should go back to when [Corya] became accountable, which would be the inception of the trust,” citing section 9 The correct statutory references are section 736.08135(1) and section 737.3035(1) (now repealed), respectively. Section 736.08135(1) was formerly section 737.3035(1). 9 736.08135(1), Florida Statutes (2007). It appears the trial court may have implicitly reached the same conclusion as to the other three trusts. As discussed above, section 736.0813(1)(d) provides that a beneficiary is entitled to a trust accounting “annually,” “as set forth in s. 736.08135.” Section 736.08135(1), Florida Statutes, provides: (1) A trust accounting must be a reasonably understandable report from the date of the last accounting or, if none, from the date on which the trustee became accountable, that...

...However, the trial court erred because, as discussed above, the trial court failed to properly apply the laches defense, which limits the duty to account to no earlier than four years prior to the date suit was filed, and because another subsection of section 736.08135, subsection (3), does not require accountings prior to January 1, 2003.10 Section 736.08135(3), Florida Statutes (2007), states: This section applies to all trust accountings rendered for any accounting periods beginning on or after January 1, 2003. (emphasis added). Because section 736.08135 became effective on July 1, 2007, we construe the combination of subsections (1) and (3) to be a clear legislative statement that trustees of irrevocable trusts could not be statutorily required to render accountings prior to January 1, 2003. In other words, we construe section 736.08135(3) to be consistent with statutory laches under section 95.11(6)....

...ress whether the annual accountings should have been on a calendar-year basis (in which case the accounting for the initial calendar year may be for less than a twelve-month period, depending on what month suit was filed) or on a twelve-month basis. Section 736.0813(1)(d), which creates the statutory duty to account, simply provides accountings must be at least annually. 10 beginning period for the first accounting, in situations where an accounting had never been done or was not prepared annually, to be no earlier than January 1, 2003, as stated in section 736.08135(3), Florida Statutes (2007). To construe the statutory language as the trial court did would result in an impermissible statutory impairment on the obligations of contracts. When Corya accepted the duties and responsibilities of...

...Since the trust had an express provision which did not require an accounting to Sanders, the trustee was not compelled to furnish an accounting until the enactment of section 736.0105(2)(s), Florida Statutes, in 2007. That statute provided that a trust provision could not prevail over the duty to account pursuant to section 736.0813(1)(c) and (d)....

...covered thereby to receive benefits from the trust which is the subject of said account.” Roy did not conclusively show that he was a beneficiary eligible to receive distributions from the trust. Although the requirement of an annual accounting in section 736.0813(l)(d), Florida Statutes, now overrides a trust provision to the contrary, see section 736.0105(2)(s), Florida Statutes, that provision of the statute was enacted in 2006. Thus, for those periods prior to its enactment, Roy would still be required to show his eligibility as a beneficiary. See also § 736.0813(5), Fla....

...e “best serves the interests of the beneficiaries.” See § 736.0706(2)(c), Fla. Stat. (2022). Reasons for her removal as Trustee of the Revocable Trust include failure to: provide notice of acceptance of the Trust at any time, in violation of section 736.0813(a), Florida Statutes (2022); file any tax returns for the Trust, thereby subjecting the Trust to potential penalties and interest; render any Trust accountings whatsoever in violation of section 736.0813(d), Florida Statutes (2022); provide the Trust's beneficiaries with relevant information about the assets and liabilities of the Trust and the particulars relating to administration in violation of section 736.0813(e), Florida Statutes (2022); distribute Trust income or principal to the Trust's beneficiaries in violation of section 736.08147, Florida Statutes (2022); invest Trust assets pursuant to the prudent investor rule set forth in sect...