What Happens When Florida Co-Trustees Don’t Agree?
The Florida Trust Code's default rules for co-trustees, and where a two-person deadlock has to go.
By: George Taylor
Two people were named to run a trust together. For a while it worked. Now they cannot agree on selling a property, making a distribution, or hiring an advisor, and the trust is stuck. If you are one of those co-trustees, here is the short answer. Under the Florida Trust Code, co-trustees who cannot reach a unanimous decision act by majority. That resolves most disagreements when there are three or more of you. But when there are only two co-trustees, there is no majority to break a tie, and a lasting deadlock usually has to be resolved by the court. This post is for people serving as co-trustees who need to know how decisions get made, and what to do when they cannot agree.
Do Co-Trustees Have to Agree on Everything?
No. By default, co-trustees who cannot reach a unanimous decision may act by majority. Each co-trustee is expected to take part in running the trust rather than sit back, unless they are genuinely unavailable because of absence, illness, or incapacity, or have properly handed a specific task to another co-trustee. In practice, a majority of a three-person group can move the trust forward even over one co-trustee's objection.
What Happens When There are Only Two Co-Trustees?
This is the situation the statute cannot fix on its own. With two co-trustees, a disagreement is a one-to-one split, and majority rule has no majority to find. The Florida Trust Code does not appoint a tiebreaker, so a genuine, continuing deadlock generally has to go to court. Florida law treats this seriously: a lack of cooperation among co-trustees that substantially impairs the administration of the trust is itself a ground to remove a trustee. The settlor, a co-trustee, or a beneficiary can ask the court to step in.
Can a Co-Trustee be Blamed For a Decision They Opposed?
Usually not, if they handle the disagreement correctly. A co-trustee who does not join in an action is generally not liable for it. A co-trustee who ends up going along at the majority's direction is protected if they made their dissent known to a co-trustee at or before the time of the action. There is an important limit, though: every co-trustee has a duty to use reasonable care to prevent another co-trustee from breaching the trust and to make them fix a breach that has occurred. Objecting protects you; looking the other way does not.
Can the Trust Document Change These Rules?
Yes, and well-drafted trusts often do. These are default rules, which means the trust's own terms generally control. A settlor who wants to avoid deadlock can require unanimous decisions, name a specific co-trustee to break ties, or give one co-trustee authority over defined areas such as investments. The best time to prevent a co-trustee deadlock is in the drafting, not after it happens. Removing a co-trustee and the court process for breaking a deadlock is its own subject, which we cover in a companion post on trustee removal in Florida.
Serving as a personal representative or trustee is a demanding job with real personal liability. Brinkley Morgan helps Florida fiduciaries administer estates and trusts correctly and with confidence. Contact George Taylor to schedule a consultation.
Based on Florida Statutes §§ 736.0105, 736.0703, and 736.0706. This article is general information, not legal advice.
Frequently Asked Questions
In Florida, Do All Co-Trustees Have to Agree?
No. By default, co-trustees who cannot reach a unanimous decision act by majority under the Florida Trust Code. The trust document can change this and require unanimity.
What Happens When Two Co-Trustees Deadlock?
With only two co-trustees there is no majority to break the tie, and the Trust Code provides no automatic tiebreaker. A continuing deadlock usually has to be resolved by the court, which can even remove a trustee when a lack of cooperation substantially impairs the trust.
Is a Co-Trustee Liable For a Decision They Voted Against?
Generally no, if the co-trustee did not join in the action, or joined at the majority's direction after making their dissent known at or before the action. But every co-trustee must still act to prevent and correct another co-trustee's breach of trust.
Can Co-Trustees Divide Up Responsibilities?
To a point. A co-trustee may delegate some functions to another co-trustee, but not a function the settlor reasonably expected them to perform jointly. Investment functions may be delegated under Florida's prudent investor rules.
Can a Trust Require Co-Trustees to Agree Unanimously?
Yes. The majority-decision rule is a default, so a trust can require unanimous decisions or build in another method for resolving disagreements.
