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Prudent administration: the standard behind every trustee decision

“Would a prudent person do this?” is Florida's actual legal test. §736.0804 provides that a trustee administer the trust as a prudent person would, considering the purposes, terms, distribution requirements, and other circumstances of the trust, exercising reasonable care, skill, and caution.

Duties · 6 min read

Care of the property itself

§736.0809 provides that a trustee take reasonable steps to take control of and protect the trust property. In practice that is the statutory home of the unglamorous early work — locating assets, securing the house, keeping insurance in force, retitling accounts into the trustee's fiduciary capacity.

§736.0810 adds recordkeeping: a trustee keeps clear, distinct, and accurate records of the administration, and keeps trust property separate from the trustee's own — the anti-commingling rule that underlies fiduciary accounting.

Investments: the prudent-investor frame

For invested assets, Florida's prudent-investor rule (chapter 518, applied to trustees through the Trust Code) evaluates decisions at the portfolio level, in light of the trust's purposes and distribution needs, rather than judging each asset in isolation. Diversification, suitability, and the timeline for reviewing inherited holdings are all fact-specific — the classic territory where trustees weigh professional investment and legal input.

Skills, and hired help

§736.0806 provides that a trustee with special skills or expertise use them. The code equally contemplates hiring: agents may be employed, and §736.0807 governs delegating investment and management functions with care in selecting, instructing, and monitoring the agent. Prudence, in other words, includes knowing what to hand to professionals — while the responsibility framework of the code continues to apply.

Common questions

What is Florida's standard of care for trustees?

Prudent administration under §736.0804 — reasonable care, skill, and caution, judged against the trust's purposes, terms, distribution requirements, and circumstances — alongside good faith (§736.0801) and loyalty (§736.0802).

May a Florida trustee hire professionals?

The code contemplates it. §736.0807 addresses delegation of investment and management functions, with care in selecting, instructing, and periodically reviewing the agent.

Are a trustee's investment decisions judged one asset at a time?

Generally no — Florida's prudent-investor approach evaluates the portfolio and strategy against the trust's purposes and needs. How it applies to particular holdings is a question for licensed professional advice.

Ask about this topic

These pre-written questions open the guided assistant with the question filled in — you review it and press send yourself. The assistant explains Florida law generally with cited sources; it does not give advice about your situation, and your question allowance applies.

  • What does §736.0804 provide about the prudent-administration standard?
  • What does Florida law say about a trustee's duty to control and protect trust property?
  • What does §736.0806 say about a trustee with special skills?

Related reading

  • Hiring help: what Florida law says about delegation
  • Records, receipts, and the accounting trail
  • Florida trustee powers
See the duties packet

The Learning Center is general information about Florida law — not legal advice, and not a substitute for advice from a licensed Florida attorney about your specific facts. TrusteeClear is software, not a law firm.

Frequently asked questions

What is Florida's standard of care for trustees?
Prudent administration under §736.0804 — reasonable care, skill, and caution, judged against the trust's purposes, terms, distribution requirements, and circumstances — alongside good faith (§736.0801) and loyalty (§736.0802).
May a Florida trustee hire professionals?
The code contemplates it. §736.0807 addresses delegation of investment and management functions, with care in selecting, instructing, and periodically reviewing the agent.
Are a trustee's investment decisions judged one asset at a time?
Generally no — Florida's prudent-investor approach evaluates the portfolio and strategy against the trust's purposes and needs. How it applies to particular holdings is a question for licensed professional advice.

General information about Florida law, not legal advice.

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