In Florida, fiduciary duty refers to the highest standard of care one party can owe to another, arising when a person or entity is entrusted with the responsibility to act primarily for another’s benefit in matters within the scope of their relationship. Fiduciary relationships are common in contexts such as trustees and beneficiaries, personal representatives and heirs, corporate directors and shareholders, attorneys and clients, and financial advisors and their clients.

Under Florida law, fiduciaries are obligated to act with loyalty, honesty, and in good faith, placing the interests of the beneficiary above their own. This includes avoiding self-dealing, fully disclosing relevant information, and exercising due care and skill when managing another’s affairs or property.

In Florida, trustees are held to especially strict fiduciary duties under both the Florida Trust Code (Chapter 736, Florida Statutes) and common law principles. A trustee’s core obligation is to administer the trust solely in the interests of the beneficiaries (§736.0802), meaning they must act with undivided loyalty and avoid any self-dealing or conflicts of interest.

This includes prohibitions on entering into transactions that personally benefit the trustee unless expressly authorized by the trust instrument, approved by the court, or consented to by all qualified beneficiaries after full disclosure. Trustees must also act with the care, skill, and caution that a prudent person would exercise (§736.0804), taking into account the purposes, terms, and circumstances of the trust.

This duty is closely linked to Florida’s adoption of the Prudent Investor Rule (§518.11), which requires trustees to diversify investments, consider the trust portfolio as a whole, and balance risk and return in accordance with the trust’s objectives. Investment decisions are judged not in isolation but in the context of the entire portfolio and strategy over time.

Additional fiduciary duties of Florida trustees include:

• Duty of Impartiality (§736.0803): When there are multiple beneficiaries, the trustee must act impartially, giving due regard to each beneficiary’s respective interests.
• Duty to Inform and Account (§736.0813): Trustees must keep qualified beneficiaries reasonably informed about trust administration, including providing annual accountings and responding to reasonable requests for information.
• Duty to Enforce and Defend Claims (§736.0811): Trustees must take reasonable steps to enforce claims that are part of the trust property and defend against claims that may harm the trust.

If a trustee breaches these duties, beneficiaries may seek remedies such as removal of the trustee, surcharge (personal liability for losses), or disgorgement of profits improperly gained.