A newly filed bill in the Florida Legislature, Senate Bill 786, would significantly change how trustees are released from legal responsibility — and it raises serious concerns for trust beneficiaries across the state.
It heavily favors trustees over beneficiaries which is alarming.
The bill creates a non-judicial process allowing a trustee to obtain full discharge from liability simply by sending a disclosure and waiting 60 days for objections. If none are received, the trustee is released as if a court approved their actions, even though no court ever reviews the matter.
What the Bill Does
Under SB 786, when a trustee resigns, is removed, or a trust terminates, the trustee may send a “trust disclosure document” to beneficiaries. If no written objection is received within 60 days, the trustee is permanently discharged from liability for matters disclosed.
Once that window closes, beneficiaries lose the right to bring future claims — including claims for breach of fiduciary duty or failure to properly account.
Why This Is Concerning
No proof of notice is required.
The bill requires only that notice be sent. There is no requirement for certified mail, proof of delivery, or court verification. If a beneficiary never receives the disclosure, the legal consequences are the same.
Silence permanently eliminates rights.
Failure to object within 60 days operates as a complete waiver of future claims, even when beneficiaries were unaware of the disclosure or did not understand it.
Trustees control the disclosure.
The trustee determines what is included in the disclosure and how it is presented. Once the deadline passes, beneficiaries are barred from challenging matters deemed “adequately disclosed.”
Vulnerable beneficiaries are unprotected.
The bill provides no safeguards for elderly beneficiaries, individuals with cognitive impairment, disabled heirs, or out-of-state beneficiaries.
Courts are removed from the process.
Trustees receive immunity “with the same effect as if the court had entered a final order,” despite the absence of any judicial review. This raises fundamental due-process concerns when property rights are at stake.
Why It Matters
Trust law exists to impose strict duties on trustees and protect beneficiaries. SB 786 shifts that balance by prioritizing speed and finality over notice, oversight, and accountability.
In practice, the bill allows a trustee to resign, send a disclosure, wait out the clock, and walk away immune from liability — even if beneficiaries never truly had the chance to respond.
Call to Action
Floridians with trusts — and those who are beneficiaries — should pay close attention to SB 786.
Lawmakers should:
- Require proof of actual notice to beneficiaries
- Preserve judicial oversight before granting immunity
- Protect elderly and incapacitated beneficiaries
- Ensure accountability is not erased by silence
