By: Anthony J. Cetrangelo, Esq.

Effective in Florida June 20, 2025

On June 20, 2025, Florida officially updated its trust laws through Senate Bill 262. These changes impact how trusts are created, managed, and interpreted in our state. Whether you’re a trustee, beneficiary, or simply working with a Florida estate planning attorney to organize your affairs, these new rules will affect your Florida trust and future administration. Below is a breakdown of some key changes.

Expanded Powers for Authorized Trustees

Florida Statute §736.04117 now grants “authorized trustees” (means a trustee, other than the settlor or a beneficiary, who has the power to invade the principal of a trust) broader flexibility to alter trusts or transfer assets to a new trust, even if the new trust was created solely for that purpose.

Trustees with absolute authority to invade trust principal have significant freedom, including the ability to change terms, extend the trust duration, or modify beneficiary interests. Trustees with limited authority, such as under a “HEMS” (health, education, maintenance, and support) standard, can also decant assets, but they must keep the beneficiaries’ interests substantially similar.

Importantly, the updated law expressly permits authorized trustees to decant assets into supplemental needs trusts, provided the new trust maintains consistency with the original trust’s purpose and safeguards other beneficiaries’ interests.

Additionally, trustees who decant are explicitly not considered settlors of the new trust. These updates apply retroactively to all Florida-governed trusts.

Trustee Notice & Statute of Limitations

Florida Statute §736.1008(4) clarifies that a trustee’s notice of intent to invade trust principal does not qualify as a “trust disclosure document.” Therefore, the statute of limitations for challenging the trustee’s action only starts after the trustee has actually exercised their power and provided formal disclosure. This change ensures beneficiaries aren’t prematurely barred from raising concerns or objections.

Limiting Claims Against Former Trustees

Under Florida Statute §736.1008(5), successor trustees (or others acting for the trust) are barred from pursuing claims against former trustees if the beneficiaries themselves would be prohibited from bringing those same claims. This reinforces the principle of finality in fiduciary relationships and ensures smoother trustee transitions without reopening settled issues.

How Lifetime Gifts Affect Trust Inheritances

Florida Statute §736.1110 clarifies when lifetime gifts by a settlor can count toward (or satisfy) future trust distributions. A gift will be considered a partial or full satisfaction if:

• The trust explicitly states it;
• The settlor or trustee makes a contemporaneous written declaration when making the gift; or
• The beneficiary provides written acknowledgment of the gift as satisfaction.

The gift’s value is determined by whichever comes first: (1) the date the beneficiary receives the gift, or (2) the settlor’s date of death.

This provision prevents beneficiaries from “double-dipping” and provides clarity when significant gifts are made prior to the settlor’s death.

Florida Homestead Property Transfers to Community Property Trusts

Florida Statute §736.151 confirms that transferring Florida homestead property into a community property trust between spouses does not trigger a property tax reassessment. Instead, such transfers are treated as a change in title between spouses according to Florida Statute §193.155(3)(a)2, preserving the homestead exemption. This update provides married couples additional flexibility in estate planning.

Flexibility, Clarity, and Efficiency

Florida’s 2025 trust law revisions enhance flexibility, clarity, and efficiency in trust administration. Trustees, beneficiaries, and estate planners now have powerful new tools, but careful compliance and precise documentation remain essential.

If you’re reviewing lifetime gifting strategies, updating Florida trust terms, or modifying existing Florida trust structures, now is the ideal time to ensure your estate planning documents reflect these critical changes. Consult with an experienced Florida estate planning attorney to ensure your estate plan continues to meet your goals under the updated Florida trust laws. I may be reached at anthony.cetrangelo@henlaw.com to schedule a consultation.