Quick Answer: Florida law does not set one fixed deadline for how long a house can stay in a trust after the owner dies. The trust terms control, and the trustee must act in good faith and as a prudent person would. Waiting too long can lead to disputes, carrying costs, tax changes, and possible trustee liability.
A parent has passed away, the house is titled in a living trust, and the family is not sure what to do next. Some heirs want to sell right away. Others want to keep the home. The successor trustee is stuck in the middle, paying bills on a house nobody lives in.
This guide explains how long a house can generally stay in a trust in Florida, what the trustee is expected to do, who pays the costs, and what can go wrong when a house sits too long.
Is There a Legal Deadline to Distribute Real Estate from a Florida Trust?
What the Duties of a Florida Trustee Require
The statutes on trustee duties do not name a specific number of days or months for selling or distributing a house. Instead, a trustee must administer the trust in good faith, following its terms and purposes and the interests of the beneficiaries (section 736.0801, Florida Statutes). A trustee must also act as a prudent person would, using reasonable care, skill, and caution (section 736.0804, Florida Statutes).
In practice, that means the trustee should move forward with a plan in a reasonable time. What is reasonable depends on the house, the market, the trust terms, and what the beneficiaries want.
Mandatory Liquidation Clauses vs. Discretionary Retention Powers
Start with the trust document. Some trusts tell the trustee to sell the house within a set period. Others give the trustee discretion to keep it, for example to let a spouse or child live there. Others hold the home in a continuing trust for a beneficiary. If the trust gives a deadline, the trustee generally should follow it. If it gives discretion, the trustee still has to use that discretion carefully and keep the interests of all beneficiaries in mind.
Trustee Fiduciary Liabilities for Unreasonable Delay
When Beneficiaries Can Petition the Court to Compel Distribution
A trustee who fails to carry out the trust’s duties commits a breach of trust under Florida law. A court has a range of tools to address that, including ordering the trustee to perform the trustee’s duties, ordering the trustee to account, and, in serious cases, removing the trustee (section 736.1001, Florida Statutes). A court may remove a trustee for a serious breach of trust or for a persistent failure to administer the trust effectively (section 736.0706, Florida Statutes). Beneficiaries who are unhappy with delays may ask a court to step in, but a court case is costly and slow. Talking with the trustee first, and putting requests in writing, is often the better first step.
Surcharge Penalties for Delay-Related Value Depletion
A trustee who commits a breach of trust may be liable for the greater of two amounts. One is the amount needed to restore the trust to where it would have been without the breach, including lost income or appreciation. The other is any profit the trustee made from the breach (section 736.1002, Florida Statutes). If a house loses value, runs up penalties, or suffers damage because the trustee ignored it, the trustee could face a claim. Whether a delay is a breach depends on the facts. A short, well-documented delay for good reasons is very different from years of inaction.
Carrying Costs: Who Pays the Bills While the House Sits in Trust?
Mortgages, HOA Dues, Property Taxes, and Hazard Insurance
Even when nobody lives in the home, the bills continue. Those commonly include any mortgage payment, HOA or condominium dues, property taxes, utilities, lawn care, and insurance. Insurers may treat a vacant home differently from an occupied one, so the trustee should tell the insurance company about the owner’s death and ask what coverage applies.
Can Trust Funds Be Used to Maintain the Property?
Generally, a trustee may use trust funds for reasonable costs of keeping up trust property, and the trust terms may say more. If the trust has little cash, the trustee may need to sell the house, or have a beneficiary who wants to keep it pay the costs. Keep every receipt. Clear records protect the trustee and the beneficiaries.
The Florida Homestead Tax Trap (Save Our Homes Cap Reset)
What Happens to the 3% Assessment Cap After the Owner Dies
Florida’s homestead assessment cap limits how much the assessed value of a homesteaded property can go up each year. The yearly increase cannot exceed the lower of 3 percent or the change in the Consumer Price Index (section 193.155(1), Florida Statutes).
The cap generally does not carry over to a new owner. Under section 193.155(3), a change of ownership, which includes a transfer of legal or beneficial title, generally means the property is assessed at just value as of January 1 of the next year. The statute lists exceptions, including certain transfers between spouses and certain transfers to a surviving spouse or minor children. The law was also amended in 2026, and the 2026 amendments first apply to the 2027 tax roll, so ask the county property appraiser or an attorney which rules apply to the tax year at issue.
Immediate Risk of Drastic Property Tax Reassessment
When the cap resets, the assessed value can jump to the home’s just value (a measure of its market value). For a home owned for many years, the new tax bill can be much higher than the old one. That is one reason families should plan the property tax bill into the decision to keep or sell.
Beneficiary Disputes: When an Heir Lives in the House Rent-Free
Can the Successor Trustee Remove an Adult Child or Beneficiary?
Sometimes a child or other beneficiary is already living in the house when the owner dies. Whether that person can stay depends on the trust terms. If the trust gives the person a right to live there, the trustee must respect it. If it does not, the trustee generally must treat all beneficiaries fairly, and a rent-free stay may not be fair to the others. If the occupant refuses to leave when asked, the trustee may need to go to court, which is costly. A calm written plan with a move-out date can often avoid that step.
Offsetting Fair Rental Value Against the Occupant’s Inheritance
One common solution is to treat the occupant as a tenant. The occupant may pay rent, or the trustee may charge the fair rental value against the occupant’s share of the trust when it is divided. Whether that is allowed depends on the trust terms and on agreement among the beneficiaries. Putting any arrangement in writing helps prevent later disputes.
Selling the House vs. Deeding to Heirs
Executing a Trustee’s Deed to Beneficiaries
If the beneficiaries want to keep the home, the trustee may sign a deed moving title from the trust to them, in the shares the trust provides. Heirs who take the home together should talk about who pays costs, who can live there, and what happens if one wants out. Those decisions are easier to make before the deed is signed.
Selling to a Third-Party Buyer and Distributing Cash Proceeds
If the heirs would rather have cash, the trustee may sell the home and distribute the net proceeds under the trust. The trustee should aim to get a fair price, which usually means getting an appraisal and exposing the house to the market. The trustee should keep the sale records, since beneficiaries may ask about them. Trustees must also keep qualified beneficiaries reasonably informed about the trust and its administration (section 736.0813, Florida Statutes).
Stepped-Up Tax Basis under IRC § 1014 (Minimizing Capital Gains)
Under federal tax law, property acquired from a person who has died generally takes a tax basis equal to its fair market value on the date of death (26 U.S.C. § 1014). When the house is sold soon after death for about that value, there may be little or no taxable gain. Waiting years while the market rises can create gain above the stepped-up value. A tax professional can confirm how this works for your trust and your family.
Frequently Asked Questions
Can a trustee keep a house indefinitely in Florida?
Only if the trust allows it and the decision is prudent. Some trusts hold a home for a beneficiary’s lifetime or for a set period. If the trust gives no such direction, a trustee who simply leaves the house untouched for years may face questions from the beneficiaries.
What happens if beneficiaries cannot agree whether to sell or keep the house?
The trustee has to follow the trust terms, not just the loudest voice. If the trust does not settle the question, the beneficiaries may reach a written agreement, such as one beneficiary buying out the others. If they cannot agree, a court may need to decide. An attorney can explain the options before anyone files.
How does a successor trustee transfer title of a Florida house?
Usually by a deed signed by the trustee, recorded in the county where the home is located, after the trustee confirms the trust terms and the authority to sell or transfer. Title companies often ask for supporting documents. Have an attorney review the steps before the deed is signed.
How AWS Law Firm Can Help Successor Trustees and Heirs
Handling a family home after a loss is hard, and trustees often feel pressure from several sides. An attorney can review the trust, explain what the document requires about the house, help the trustee plan the timing of a sale or transfer, and coordinate the paperwork. Our Tampa trust attorneys page explains how we approach trust administration, and our Tampa probate lawyers page covers estate administration when a probate case is also involved. If a family disagreement cannot be resolved, our Tampa litigation attorneys page describes our work on trust disputes.
Every situation is different, and general information or past results do not guarantee a result in your case. If you would like an attorney to review your trust and discuss your options, you can schedule a consultation with AWS Law Firm.
Legal Disclaimer: The information provided in this article is for general educational and informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by reading this content. Laws change and every situation is different. Despite careful research and writing, mistakes or omissions can occur. If you notice an error, please contact AWS Law Firm so we can review and correct it. If you are facing a legal dispute or need guidance regarding Florida trust, probate, or elder law, consult directly with a licensed Florida attorney.
