Florida Statute 736.0414
“Modification or termination of uneconomic trust”
What it means
Two routes exist for a trust whose property is too small to justify its administration cost. After notice to the qualified beneficiaries, the trustee of a trust with total property less than $50,000 may terminate it if the trustee concludes the value is insufficient to justify the cost of administration.
On application of a trustee or any qualified beneficiary, the court may modify or terminate a trust, or remove the trustee and appoint a different trustee, if it determines the value is insufficient to justify the cost of administration. The statute sets no dollar cap on the court's version.
On termination, the trustee distributes the trust property in a manner consistent with the trust's purposes and may make arrangements needed to protect the beneficiaries and the trustee. A spendthrift provision does not make the section inapplicable unless the instrument expressly says the trustee may not terminate under it. The section does not apply to an easement for conservation or preservation.
- A trustee may terminate a trust with property under $50,000 after notice to the qualified beneficiaries if the value is insufficient to justify administration costs (§ 736.0414(1)).
- A court may modify or terminate a trust, or remove the trustee and appoint another, on the same finding, with no dollar cap (§ 736.0414(2)).
- On termination, the trustee distributes the property consistent with the trust's purposes (§ 736.0414(3)).
- A spendthrift provision does not make the section inapplicable unless the instrument expressly bars trustee termination under it (§ 736.0414(4)).
- The section does not apply to an easement for conservation or preservation (§ 736.0414(5)).
Text of the statute (2026)
After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $50,000 may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.
Upon application of a 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.
Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust. The trustee may enter into agreements or make such other provisions that 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.
The existence of a spendthrift provision in the trust does not make this section inapplicable unless the trust instrument expressly provides that the trustee may not terminate the trust pursuant to this section.
This section does not apply to an easement for conservation or preservation.
Excerpts are the subsections the summary relies on. Read the full official text of § 736.0414.
History. s. 4, ch. 2006-217.
How it applies
A trust whose property is too small to justify the cost of administration can be addressed two ways. A trustee may act without a court for a trust with total property under $50,000, after notice to the qualified beneficiaries (subsection (1)); a qualified beneficiary may commence a proceeding to disapprove that termination under § 736.0410(3). On application, a court may modify or terminate a trust of any value, or replace the trustee, if the property is insufficient to justify administration cost (subsection (2)). On termination, the trustee distributes in a manner consistent with the trust's purposes.
Where this shows up
Pages on this site where § 736.0414 does real work:
Related sections
Questions people ask
Sources
- Florida Statutes (2026), s. 736.0414 (Official text and History line.)
- Florida Statutes (2026), s. 736.0410 (Qualified-beneficiary right to challenge a 736.0414(1) termination (subsection (3)).)
Last checked: October 17, 2026
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