What to do if a resigned trustee still administers an irrevocable trust in Florida?

What actions can be taken when a trustee who officially resigned over 20 years ago, by sending a resignation letter to a beneficiary, continues to administer an irrevocable trust and make decisions concerning the trust? There have been no actions taken by beneficiaries regarding the trustee's continued administration, and legal documents exist that define the trustee's powers after resignation.

The person(s) wishing to (and with legal standing to) take action should speak to an attorney.

neilkpd said:

What actions can be taken when a trustee who officially resigned over 20 years ago, by sending a resignation letter to a beneficiary, continues to administer an irrevocable trust and make decisions concerning the trust?

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Without facts, this is a pointless question.

Let's start with the following:

1. What is/was the relationship between the trustor/grantor, the trustee who resigned, and the beneficiaries?

2. Was the trustee who resigned the original trustee?

3. To whom did the resigned trustee send the resignation letter?

4. What does the trust say happens upon the resignation of a trustee?

5. What did the recipient(s) of the resignation letter do upon receiving the letter?

6. Following resignation, did the resigned trustee turn over control of all trust assets to the successor trustee (or someone else)?

7. If the answer to question #6 is no, did the successor trustee take action against the resigned trustee for failing to turn over the assets?

8. In what ways has the resigned trustee "continue[d] to administer the trust," and what decisions has he/she made concerning the trust?

9. Has this continued administration occurred regularly over the entire 20-year period since resignation or is it something that he/she has only started doing recently? If the former, what action, if any, has the successor trustee taken to address this action?

10. What is your connection to the trust and the persons involved with the trust?

neilkpd said:

There have been no actions taken by beneficiaries regarding the trustee's continued administration

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Why have they failed to take any action?

neilkpd said:

legal documents exist that define the trustee's powers after resignation.

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Obviously, the trust instrument should address this. Any other documents? Most importantly, why would a trustee who has resigned have any continuing powers after resignation? I review multiple trust instruments every week and have never seen one in which a resigned trustee retains any authority (other than in connection with turning over assets to the successor trustee).

neilkpd said:

What actions can be taken when a trustee who officially resigned over 20 years ago, by sending a resignation letter to a beneficiary, continues to administer an irrevocable trust and make decisions concerning the trust? There have been no actions taken by beneficiaries regarding the trustee's continued administration, and legal documents exist that define the trustee's powers after resignation.

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Who are you in this scenario?

What is your beef with the former trustee?

Why has nobody asked the former trustee to stop what he's doing?

If they had, with what result?

I just finished being the sole Trustee of an irrevocable Trust in FL for the last 4 years (Trust recently terminated after all funds dispersed to beneficiaries).

What legal documents exist "that define the trustee's powers after resignation."? Are you talking about provisions in the Trust, or provisions in FL Trust law? If you are talking about provisions in the Trust document itself, then please state what those are, and other provisions in the Trust document dealing with appointment or resignation of a Trustee (if any).

According to FL Trust law:

... a person designated as trustee accepts the trusteeship:

1. By substantially complying with a method of acceptance provided in the terms of the trust; or
2. If the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.

Since no one else has taken over as Trustee after the resignation, the fact that the original Trustee is still exercising the powers of Trustee, means to me that that person is de facto Trustee under FL Trust law until another Trustee is installed by the beneficiaries, or other provision of the Trust agreement are invoked for selecting or removing a Trustee, even though the original Trustee has submitted a letter of resignation.

neilkpd said:

What actions can be taken when a trustee who officially resigned over 20 years ago, by sending a resignation letter to a beneficiary, continues to administer an irrevocable trust and make decisions concerning the trust?

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What has(have) the successor trustee(s) been doing for the past 20 plus years?

zddoodah said:

Without facts, this is a pointless question.

Let's start with the following:

1. What is/was the relationship between the trustor/grantor, the trustee who resigned, and the beneficiaries?

2. Was the trustee who resigned the original trustee?

3. To whom did the resigned trustee send the resignation letter?

4. What does the trust say happens upon the resignation of a trustee?

5. What did the recipient(s) of the resignation letter do upon receiving the letter?

6. Following resignation, did the resigned trustee turn over control of all trust assets to the successor trustee (or someone else)?

7. If the answer to question #6 is no, did the successor trustee take action against the resigned trustee for failing to turn over the assets?

8. In what ways has the resigned trustee "continue[d] to administer the trust," and what decisions has he/she made concerning the trust?

9. Has this continued administration occurred regularly over the entire 20-year period since resignation or is it something that he/she has only started doing recently? If the former, what action, if any, has the successor trustee taken to address this action?

10. What is your connection to the trust and the persons involved with the trust?




Why have they failed to take any action?




Obviously, the trust instrument should address this. Any other documents? Most importantly, why would a trustee who has resigned have any continuing powers after resignation? I review multiple trust instruments every week and have never seen one in which a resigned trustee retains any authority (other than in connection with turning over assets to the successor trustee).

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1. What is/was the relationship between the trustor/grantor, the trustee who resigned, and the beneficiaries?
Father was the trustor/grantor.
The trustee that resigned is the eldest brother.
Beneficiaries are the grandchildren and youngest son.

2. Was the trustee who resigned the original trustee?
Yes.

3. To whom did the resigned trustee send the resignation letter?
One of my niece, a beneficiary.

4. What does the trust say happens upon the resignation of a trustee?
Someone not related can become the new trustee.

5. What did the recipient(s) of the resignation letter do upon receiving the letter?
She didn't do anything and only made me aware five years ago.

6. Following resignation, did the resigned trustee turn over control of all trust assets to the successor trustee (or someone else)?
No. There was a co-trustee created but the trustee does not allow for relatives to be the replacement.

7. If the answer to question #6 is no, did the successor trustee take action against the resigned trustee for failing to turn over the assets?
No.

8. In what ways has the resigned trustee "continue[d] to administer the trust," and what decisions has he/she made concerning the trust?
He continued to administer the trust as if he was still the trustee, although he had resigned.

9. Has this continued administration occurred regularly over the entire 20-year period since resignation or is it something that he/she has only started doing recently? If the former, what action, if any, has the successor trustee taken to address this action?
A replacement trustee was never appointed. No action taken although I frequently inquired who was the replacement trustee and requesting annual reports.

10. What is your connection to the trust and the persons involved with the trust?
I'm a beneficiary and the brother of the trustee.

Based on the long-term actions of all involved, I think it's safe to say that the resignation never became effective.

neilkpd said:

4. What does the trust say happens upon the resignation of a trustee?
Someone not related can become the new trustee.

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"Someone"? Any random person? Or someone specific?

neilkpd said:

3. To whom did the resigned trustee send the resignation letter?
One of my niece, a beneficiary.

...

5. What did the recipient(s) of the resignation letter do upon receiving the letter?
She didn't do anything and only made me aware five years ago.

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If the resignation was only sent to a single beneficiary and nothing else changed, it sounds like the resignation was ineffective.

That said, this follow up post raises another batch of questions. If you're unhappy about what has happened, then I suggest you take all of the relevant paperwork to a local trust attorney for review and advice.