Many Florida retirees face a common dilemma when creating their estate plans: their most trusted family members live hundreds or thousands of miles away. As a Brandon trust attorney, I frequently help clients weigh whether appointing an out-of-state trustee is the right choice for their situation. The answer isn’t always straightforward, but understanding the pros and cons can help you make an informed decision.
The Practical Realities
Modern technology has made managing trust affairs from a distance much more feasible than in the past. Your out-of-state trustee can handle many responsibilities remotely, including investment management, bill paying, and beneficiary communications. Electronic banking, digital document sharing, and video conferencing tools allow trustees to fulfill most duties without regular travel to Florida.
However, certain situations still require local presence. Property management, dealing with local service providers, and handling urgent matters can be challenging from afar. If your trust includes Florida real estate or business interests, having someone nearby becomes more valuable.
Legal Considerations
Florida law doesn’t prohibit out-of-state trustees, but there are important requirements to consider. Your chosen trustee may need to appoint a Florida resident as their agent for service of process, and they must be prepared to appear in Florida courts if legal issues arise.
Additionally, different states have varying trust laws and tax implications. Your out-of-state trustee should understand how their state’s rules might affect trust administration and beneficiary distributions.
When Out-of-State Makes Sense
Choosing an out-of-state trustee can be the right decision when that person possesses the ideal combination of trustworthiness, financial acumen, and availability. If your adult child in California has been managing your affairs for years and understands your wishes better than anyone locally, distance shouldn’t automatically disqualify them.
Out-of-state trustees can also provide valuable objectivity, especially in complex family situations where local relationships might create conflicts of interest.
Strategies for Success
If you decide on an out-of-state trustee, consider appointing a local co-trustee or successor trustee to handle Florida-specific matters. You might also designate a local contact person who can assist with urgent situations or property-related issues.
Ensure your trustee understands the commitment involved and has the resources to travel to Florida when necessary. Clear communication about expectations and compensation for travel expenses should be addressed in your trust documents.
Professional Support Makes the Difference
An out-of-state trustee can be highly effective with proper professional support. Working with experienced Florida attorneys and financial advisors provides the local expertise your trustee needs while allowing them to focus on the bigger picture of trust management.
The key is honest assessment of your specific situation, your trustee’s capabilities, and the nature of your trust assets.
Don’t let geography prevent you from choosing the right person for this crucial role. With proper planning and support, an out-of-state trustee can serve your family’s interests effectively.
Need help evaluating trustee options for your Florida trust? Contact our team at (813) 438-8503 to discuss strategies that work for families spread across the country.