What Is Fiduciary Duty in Florida — and When Is It Violated?

Fiduciary duty is a legal obligation to act in another person's best interest. In Florida, trustees, personal representatives, and agents acting under a power of attorney all owe this duty—and they can be held legally accountable when they fail to meet it. These obligations are among the highest duties recognized under Florida law, and a breach can cause real financial and emotional harm. For families in Orlando, Orange County, and across Florida, understanding fiduciary duty is the first step in identifying when something has gone wrong.

At the Law Office of Robyn L. Lesser, P.A., we handle fiduciary litigation statewide and help both beneficiaries seeking accountability and fiduciaries defending against allegations. This guide explains what fiduciary duty means in Florida, what it requires, and what constitutes a violation.

What Does “Fiduciary Duty” Mean Under Florida Law?

A fiduciary is someone trusted to manage money, property, or decision‑making on behalf of another person. Florida law places high expectations on these individuals because they hold power that can significantly affect someone else’s financial rights. Fiduciaries include:

• Trustees managing trust assets
• Personal representatives administering estates
• Agents acting under powers of attorney

Regardless of the role, all fiduciaries must act with honesty, care, and loyalty. When they prioritize their own interests, hide information, or mishandle assets, they may be legally liable for breach of fiduciary duty.

The Duty of Loyalty

The most fundamental obligation is the duty of loyalty. A fiduciary must always act in the beneficiary’s best interest—not their own. They cannot use their position to benefit personally, even if they believe it causes no harm.

Example of a breach: A trustee pays themselves excessive fees or uses trust money for personal travel. Even if they intend to “pay it back later,” it violates the duty of loyalty.

The duty of loyalty ensures decisions are made solely for the benefit of the estate or trust, not the fiduciary.

The Duty to Account

Fiduciaries must keep accurate records and provide accountings upon request or as required by law. These records should clearly reflect income received, expenses paid, investments made, and distributions issued.

Example of a breach: A personal representative refuses to provide an accounting or claims no records exist. Missing, vague, or inaccurate records are red flags under Florida law.

Proper accounting maintains transparency—a core requirement of responsible fiduciary conduct.

The Duty to Invest Prudently

Trustees and some personal representatives must invest assets responsibly, following Florida’s “prudent investor rule.” They must balance risk and return, diversify investments, and protect assets from unnecessary loss.

Example of a breach: A trustee invests most of the trust’s assets in a high‑risk startup owned by a relative or refuses to diversify despite market volatility.

Prudent investing is not about guaranteeing profit—it is about making careful, informed decisions that a reasonable person would make in similar circumstances.

The Duty to Inform and Communicate

Fiduciaries must keep beneficiaries informed about key actions, decisions, and developments. Silence, stonewalling, or refusal to answer reasonable questions can itself be a breach.

Example of a breach: An agent under a power of attorney makes financial decisions without telling the principal or family members, leaving beneficiaries unaware of major withdrawals or transfers.

Effective communication is essential for trust and legal compliance.

The Duty to Avoid Self‑Dealing

Self‑dealing occurs when a fiduciary uses their position to benefit themselves or someone close to them. Florida courts view self‑dealing very strictly, and even the appearance of a conflict can be actionable.

Example of a breach: A personal representative sells estate real estate at a discount to a friend or relative, or purchases estate property themselves at below‑market value.

Any transaction that favors the fiduciary over beneficiaries is suspect under Florida law.

Examples of Breach of Fiduciary Duty in Florida

Breach can occur in many ways, including:

• Using trust or estate funds for personal expenses
• Failing to distribute assets when required
• Making unauthorized gifts or transfers
• Ignoring creditor claims or tax obligations
• Refusing to provide records or information
• Allowing assets to deteriorate or lose value through inaction

Whether intentional or careless, these actions can lead to legal liability and court intervention.

Remedies for Breach of Fiduciary Duty in Florida

Florida law provides several remedies when a fiduciary violates their duties. Courts may:

• Remove the fiduciary from their position
• Order repayment of misused funds (surcharge)
• Freeze or take control of assets
• Void improper transactions
• Award damages for losses caused by misconduct
• Appoint a successor fiduciary

These remedies are designed to protect beneficiaries and restore the estate or trust to the condition it should have been in.

The Firm Represents Both Sides of Fiduciary Disputes

At the Law Office of Robyn L. Lesser, P.A. in Orlando, we represent:

• Beneficiaries who believe a trustee, personal representative, or agent is mismanaging funds or acting improperly
• Fiduciaries who are performing their duties correctly but are facing accusations, misunderstandings, or conflict

Fiduciary disputes often involve family relationships and significant financial stakes. Our goal is to provide clarity, protect rights, and resolve conflicts with professionalism and care.

You can learn more about these issues by visiting our pages on Fiduciary Litigation, Trustee and Personal Representative Disputes, Beneficiary Representation, Will and Trust Contests, and our FAQ.

Law Office of Robyn L. Lesser, P.A. is a Florida probate and trust litigation practice focused on fiduciary disputes, probate administration, and estate litigation — this is our focus every day, serving clients statewide across Florida. Call (407) 698-5338.