When Can a Florida Trustee Terminate a Small Trust?

The court route in the same statute does not include the $50,000 threshold. On application of the trustee or any qualified beneficiary, the court may modify or terminate a trust, or remove the trustee and appoint a different trustee, if the court determines that the value of the trust property is insufficient to justify the cost of administration.

When a trust ends under this rule, the trustee must distribute the trust property in a manner consistent with the purposes of the trust. The trustee may enter into agreements or make other provisions the trustee deems necessary or appropriate to protect the interests of the beneficiaries and the trustee and to carry out the intent and purposes of the trust.

A spendthrift provision does not by itself block termination. The rule still applies unless the trust instrument expressly provides that the trustee may not terminate the trust under this section. The rule does not apply to an easement for conservation or preservation.

Florida has other ways to modify or end a trust, and this page covers only the uneconomic trust rule. The duties a trustee owes while making these decisions are summarized in what duties a Florida trustee owes to beneficiaries. The basics of how trusts work are covered in what a trust is.