Florida’s estate and trust laws just changed, again. On June 20, 2025, Senate Bill 262 took effect, rewriting key rules that affect how trustees manage, modify, and even restructure trusts in Florida. If you’re a trustee, a beneficiary, or someone planning an estate, this law is not background noise. It changes your playbook.
At Brandon Legal Group, we don’t waste time sugar-coating: SB 262 gives trustees more power than ever, but it also raises the stakes if you use that power recklessly. Here’s what you need to know.
Why SB 262 Matters
Trusts are supposed to provide certainty. But over the years, rigid rules and outdated structures made many trusts more of a burden than a benefit. Florida lawmakers recognized the gap and passed SB 262 to modernize trustee authority. The big takeaway?
- Trustees can act faster.
- Beneficiaries have clearer protections.
- Courts get less clogged with routine modifications.
This means more flexibility to adapt to real-life family needs, but also more potential for conflict if trustees overstep.
The Core Powers Expanded Under SB 262
1. Trust Decanting Without Fear
SB 262 expands authority to “decant” a trust: pour assets from one trust into another with better terms.
If an old trust doesn’t fit today’s tax laws or family dynamics, trustees can redirect without starting from scratch.- Supplemental needs trusts can now be created through decanting without exposing the trustee as a “settlor.”
⚠️ Risk to avoid: Trustees must still document why decanting benefits beneficiaries. If you can’t show clear advantage, you’re inviting litigation.
2. Statute of Limitations Clarity
Once proper disclosure is made, beneficiaries have a 6-month window to challenge trustee actions. This change removes years of uncertainty that haunted both trustees and heirs.
- For trustees: File reports, and liability windows close faster.
- For beneficiaries: Ignoring reports can erase your rights.
3. Expanded Gifting Powers
Trustees can now make gifts even when the trust language isn’t explicit. That means more flexibility to address family needs or charitable intent in real time.
But remember: just because you can, doesn’t mean you should. Abuse this and expect a courtroom showdown.
4. Unitrust Conversions
Trustees can convert income trusts into unitrusts, paying beneficiaries a set percentage each year. This can create more stability for families who rely on trust income.
- Pro: Predictable, fairer distributions.
- Con: Risk of disputes if beneficiaries believe percentages are manipulated.
5. Administrative Streamlining
Fewer filings and simplified notice rules = faster action. This reduces backlogs in probate courts and makes trust administration more efficient.
⚠️ But faster also means fewer guardrails. Mistakes are easier to make, and harder to hide.
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What Trustees Should Do Now
- ✅ Embrace Transparency: Document every move.
- ✅ Seek Counsel Before Decanting: Don’t wing it.
- ✅ Watch the Clock: Proper notice = your shield.
- ✅ Respect Fiduciary Duty: Every act must benefit beneficiaries, not you.
What Beneficiaries Should Do Now
- ⚠️ Read Every Notice: Silence can cost you rights.
- ⚠️ Don’t Assume Old Rules Apply: Timelines changed.
- ⚠️ Ask Hard Questions: Demand clear written justifications.
Federal Tax Overlap: The OBBB Factor
The One Big Beautiful Bill (OBBB) raised the estate/gift exemption to $15M per person in 2026. But it sunsets after Dec 31, 2025.
- Trustees may rush to restructure before the exemption shrinks.
- SB 262’s new powers make that possible, but also riskier without strategy.
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Why BLG’s Approach Is Different
At Brandon Legal Group, we cut through the noise. SB 262 is a gift for strategic trustees, and a trap for careless ones.
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- Translate complexity into clarity.
- Anticipate risks before they strike.
- Give you the courage to act decisively, without stepping into avoidable traps.
Final Word
SB 262 empowers trustees in Florida like never before, but empowerment without caution is reckless.
At BLG, we’ll give you the spine to stand firm, the strategy to move forward, and the strength to protect what matters.
📞 Call Brandon Legal Group today. Don’t wait until “empowerment” turns into “exposure.”
Frequently Asked Questions About SB 262
Can trustees really move assets into a new trust without court approval?
Yes, SB 262 allows decanting into a new trust if it benefits beneficiaries. But trustees must document the reasons clearly to avoid challenges.
How much time do beneficiaries have to object to trustee actions?
Under SB 262, once a proper accounting or disclosure is given, beneficiaries generally have six months to object. Silence can waive rights.
Does SB 262 affect older trusts created before 2025?
Yes, many of the new rules apply to existing trusts, especially decanting, gifting, and unitrust conversion powers. Trustees must check language carefully.
What if my trustee abuses these new powers?
Beneficiaries still have legal recourse. SB 262 expands trustee authority but does not erase fiduciary duties. Courts can remove or surcharge a trustee who misuses power.
How does SB 262 interact with federal estate tax changes?
Florida trustees may act quickly before the OBBB estate tax exemptions shrink in 2026. Decanting or gifting powers must be used strategically to align with federal rules.