Can a Trustee Pay for a Beneficiary’s Child’s College Tuition? Understanding Fiduciary Duty in Florida Trusts

At first glance, it may seem reasonable—even generous—for a trustee to use trust funds to pay for the college tuition of a trust beneficiary’s child. After all, doing so could relieve the financial burden on the beneficiary and support the broader goal of promoting education within the family.

But what happens when that well-intentioned action goes against the terms of the trust? In Florida, as in many states, a trustee must follow the letter of the law and the specific instructions outlined in the trust document. Deviating from those instructions, even with the best of intentions, can constitute a breach of fiduciary duty.

Let’s unpack why this matters and what Florida law says about a trustee’s responsibilities when it comes to educational expenses and non-beneficiaries.

The Fiduciary Duty of a Trustee in Florida

Under Florida Statutes trustees have a fiduciary duty to act solely in the interests of the beneficiaries of the trust. That means every decision a trustee makes—from managing investments to making distributions—must benefit only those individuals or entities explicitly named in the trust.

Trustees must also follow the terms of the trust document precisely. Florida law does not permit a trustee to make assumptions about the grantor’s intent or to reinterpret provisions based on what they believe is “reasonable” or “fair.”

When Education Is Mentioned—but Not Defined

Consider this scenario: A Florida trust states that the trustee “may make distributions for the education of the beneficiary.” This seems fairly clear. But if the trustee then uses trust assets to pay the beneficiary’s child’s college tuition, is that allowed?

The answer is: not unless the trust explicitly allows it.

Florida law treats the trust document as the guiding authority. If the document does not define “education” to include expenses for the beneficiary’s descendants or does not list those descendants as trust beneficiaries, then such distributions are not authorized. In fact, they may be considered self-dealing, especially if the trustee is also a parent of the student whose tuition is being paid.

Even if the trustee believes they are acting within the spirit of the trust, they must remain within its legal limits. Courts in Florida will focus on what the trust says, not what the trustee assumes was intended.

Lessons from a Hypothetical Misstep

Let’s imagine a Florida example similar to one addressed in a Washington State case.

Suppose Emma establishes a Florida trust, naming her two sons, James and Daniel, as beneficiaries. The trust instructs that upon her death, the assets are to be divided equally into two shares—one for each son. James is named as the trustee.

After Emma passes away, James uses trust funds to pay his son’s college tuition, justifying it by saying Emma always valued education and helped pay for her grandchildren’s schooling while she was alive.

But Daniel objects, noting that the trust did not specifically authorize distributions for anyone other than the named beneficiaries—himself and James. Worse, James never formally split the trust into two separate shares before making the tuition payment.

This is a recipe for legal trouble. Even if James plans to “adjust” for the tuition payment later by taking less for himself, his action can still be considered a breach of fiduciary duty. A trustee must avoid conflicts of interest and act impartially toward all beneficiaries. Making distributions that favor a trustee’s own family members—especially before assets are formally divided—can violate both of those duties.

Best Practices for Trustees in Florida

So, what should James have done instead? Here are a few key takeaways for trustees managing Florida trusts:

1. Carefully Review the Trust Terms Before making any distribution, the trustee should consult the trust document. Does it clearly authorize payments for a beneficiary’s child’s education? If not, the trustee must not assume it’s permitted.

2. Divide the Trust When Directed If the trust says assets must be split into separate shares, do so promptly and formally before making any distributions. Delaying that process can lead to confusion, imbalance, and potential legal challenges.

3. Seek Legal Guidance Early Trustees in Florida are held to a high standard. A misstep can result in legal action, including removal as trustee or being personally liable for misused funds. Consulting with an experienced trust attorney early in the administration process can prevent costly mistakes down the road.

Don’t Go It Alone—We’re Here to Help

Serving as a trustee can be an honor, but it also comes with serious legal responsibilities. Just because something feels like the right thing to do doesn’t mean it’s legally correct. If you’ve been named a trustee or are managing a Florida trust and have questions about your duties or potential distributions, we can help.

At The Soto Law Office, we work with clients across Central Florida to navigate the complexities of trust administration and fiduciary responsibility. Whether you need help interpreting trust language, dividing trust shares, or making decisions about distributions, we’re here to provide experienced and reliable guidance.

Call us today at (321) 972-2279 or visit www.TheSotoLawOffice.com to schedule a consultation. Let us help you carry out your duties with confidence and clarity.