Who has to account
A Florida trustee must provide a trust accounting at least annually, on termination of the trust and on a change of trustee, to each qualified beneficiary (Fla. Stat. §736.0813(1)(d)). Beneficiaries can waive accountings, and the duty doesn't apply while the trust is revocable. Personal representatives of estates file accountings in the probate proceeding under the Florida Probate Rules.
What the accounting must contain
Section 736.08135(1) requires "a reasonably understandable report" from the date of the last accounting (or from when the trustee became accountable) that adequately discloses the information in subsection (2):
- (2)(a) a statement identifying the trust, the trustee furnishing the accounting and the period covered;
- (2)(b) all cash and property transactions and all significant transactions affecting administration, including compensation paid to the trustee and the trustee's agents, gains and losses realized, and all receipts and disbursements;
- (2)(c) to the extent feasible, the assets on hand at the close of the period with two values for each asset or class (acquisition or carrying value, and estimated current value), plus each known noncontingent liability;
- (2)(d) significant transactions that don't change the amount the trustee is accountable for, such as name changes of holdings, carrying-value adjustments, a change of custodian and stock splits;
- (2)(e) the allocation between income and principal when it affects any beneficiary's interest; and
- (2)(f) for a final accounting, a plan of distribution for any undistributed assets.
The Rule 5.346 model format
Florida Probate Rule 5.346 governs accountings by personal representatives, and its Appendix A contains a model accounting that Florida practitioners widely use for trusts too. The model is built on the Uniform Fiduciary Accounting Principles and is organized as a summary with Income, Principal and Total columns:
| Summary item | Supported by |
|---|---|
| I. Starting balance (assets on hand at the beginning) | |
| II. Receipts | Schedule A |
| III. Disbursements | Schedule B |
| IV. Distributions | Schedule C |
| V. Capital transactions and adjustments (gains, losses, other changes) | Schedule D |
| VI. Assets on hand at the close of the period | Schedule E |
The summary balances: starting balance plus receipts, less disbursements and distributions, plus or minus capital adjustments, equals the closing balance. Schedule E shows each asset at its carrying value, with current value alongside.
Rule 5.346 doesn't apply to guardianship accountings, which follow ch. 744 and Rule 5.696.
Why disclosure matters: the six-month limit
Under Fla. Stat. §736.1008, a beneficiary's claim for breach of trust can be barred six months after the beneficiary receives a trust accounting or limitation notice that adequately discloses the existence of the claim and informs the beneficiary of the time allowed for bringing it. An incomplete or unclear accounting doesn't start that clock, and the longer statutory periods then apply. A complete, well-organized accounting protects the trustee as much as it informs the beneficiary.
Common problems
- Mixing income and principal. Dividends are income; capital-gain distributions and sale proceeds are principal. Trustee fees are generally split.
- Opening balances that don't match the last accounting. A subsequent accounting must start from the prior accounting's closing balances, including undistributed income.
- Assets at market value only. Schedule E needs carrying value; current value is additional.
How Summafolio handles it
The Florida format renders summary items I-VI with Income, Principal and Total columns and Schedules A-E, following the Appendix A structure. Subsequent accountings roll forward the prior closing balances, including undistributed income. See the sample Florida trust accounting.