PROBATE CORNER
PROBATE CORNER
Trust Beneficiary ’ s Standing To Contest Settlor ’ s Estate ( Continued )
DAVID M . GARTEN
Fleischer argues that Buerki v . Lochner , 570 So . 2d 1061 ( Fla . 2d DCA 1990 ), and Roller v .
Collins , 373 So . 3d 35 ( Fla . 5th DCA 2023 ), are applicable and demonstrate Mark does not have standing . We disagree . Those cases are distinguishable , as both cases concerned whether a beneficiary of a trust , rather than the trustee , could bring an action on behalf of the trust . Here , Mark does not seek to bring an action on behalf of his trust , but rather asserts standing to object to Fleischer ' s final accounting and petition for discharge based on his status as the beneficiary of his testamentary trust . Mark seeks to prevent the testamentary trust for his benefit from being dissipated . Based on Estate of Watkins , the trial court erred in determining that Mark did not have standing to file objections as an interested person .
Fleischer contends that section 731.303 ( 1 ), Florida Statutes ( 2022 ) supports the trial court ' s ruling . Section 731.303 ( 1 ) provides when a representative may bind another : ( b ) To the extent there is no conflict of interest between them or among the persons represented :… 2 . Orders binding a trustee bind beneficiaries of the trust in proceedings to probate a will , in establishing or adding to a trust , in reviewing the acts or accounts of a prior fiduciary , and in proceedings involving creditors or other third parties . However , for purposes of this section , a conflict of interest shall be deemed to exist when each trustee of a trust that is a beneficiary of the estate is also a personal representative of the estate . § 731.303 ( 1 )( b ) 2 ., Fla . Stat . ( 2022 ) ( emphasis added ).
We conclude that section 731.303 ( 1 )( b ) 2 . does not apply . We do not read section 731.303 ( 1 )( b ) 2 .' s last sentence as being the sole ground for conflict of interest . Rather , 731.303 ( 1 )( b ) provides : To the extent there is no conflict of interest between them …[ o ] rders binding a trustee bind beneficiaries of the trust …. Id . Therefore , under 731.303 ( 1 ) ( b ), a conflict may exist between a trustee and a beneficiary , and section 731.303 ( 1 ) ( b ) 2 .' s last sentence does not exclude other conflicts , but rather provides a scenario where a conflict exists as a matter of law .
In this case , a conflict exists between Randall , a trustee , and Mark , the beneficiary . Not only do the brothers have substantial disagreements about the settlement agreement , but Randall , as a beneficiary of the estate , stands to benefit to the extent that Mark ' s trust is required to incur more of the estate expenses . Because a conflict of interest exists between Mark and Randall , orders binding the trustees cannot bind Mark .”
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