Do resigning trustees pay costs or does the trust pay?

Question

According to Florida law.

Answer 1

The trust always pays all cost incurred.

Answer 2

Your question is reproduced here to preserve the original fact pattern to which this answer applies:

"Do resigning trustees pay costs or does the trust pay?

According to Florida law."

The quick answer to your question is "the trust usually pays costs related to the trust."

A working assumption here is that the trust to which you refer is set up like most trusts under typical U.S. laws and does not have particular provisions that obligate the trustee beyond the norm.

Trustees are generally not employees but rather trusted caretakers of assets put aside for a specific purpose-- say for a minor who cannot handle the responsibility of caring for the assets.  Often, trustees will be paid a customary amount (a small percentage of the value of the trust or proceeds thereof) for carrying out the fiduciary responsibilities with which they have been entrusted.  Notice the different forms of the word "trust" being bounced around here.  Banks and attorneys are often trustees but generally anyone can be named as a trustee.

The trustee usually does not pay ANY expenses related to the management, disbursements or termination of the trust-- except from the trust itself.  Trust costs and expenses related to the trust (such as an accounting of the trust's assets when a trustee resigns) are paid from the trust unless the provisions of the trust explicitly has those expenses paid by the trustee.

See also Florida Statutes XLII Chapter 736-- especially 736.0709 on Reimbursement of expenses (reproduced below):

(1)  A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for reasonable expenses that were properly incurred in the administration of the trust.

(2)  An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.

History.--s. 7, ch. 2006-217.

[This is not legal advice. You should consult a licensed attorney-at-law for legal advice or representation before making decisions that may affect your legal rights.]