## Facts

- J. Alfred McMullin created an inter vivos trust, the J. Alfred McMullin Living Trust dated December 21, 1995.
- The trust instrument provided that the trust would terminate upon Alfred’s death.
- The trust held rights under a contract with Thomas Merrill Beaver, Jr. and T.M.B. Enterprises, Inc.
- After Alfred died, Michael P. McMullin became the successor trustee, and he was also a trust beneficiary.
- Michael, acting in his capacity as successor trustee, filed suit against Beaver and T.M.B. Enterprises to enforce the contract rights owned by the trust.
- The defendants sought dismissal/summary judgment, arguing Michael lacked standing because the trust terminated on Alfred’s death and Alfred died before the lawsuit was filed.
- The trial court entered final summary judgment for the defendants on the standing ground.
- Michael appealed.

## Issues

1. Does a successor trustee have authority and standing to sue on a trust-owned contract after the settlor’s death when the trust instrument states the trust terminates at death, but the suit is filed during the period needed to wind up and distribute trust assets?

## Decision

- The Fourth District Court of Appeal reversed the final summary judgment.
- The court held the trustee’s authority to prosecute claims for trust assets can continue after the trust’s stated termination, during the time needed to wind up administration and make final distributions.
- The case was remanded for further proceedings on the contract claim.

## Legal Principles

- Florida law grants trustees power to “prosecute actions, claims or proceedings for the protection of trust assets and of the trustee in the performance of his or her duties” until final distribution of the trust assets. Fla. Stat. § 737.402 (2003).
- A trust’s “termination” by its terms does not end all trustee powers at once; a winding-up period is usually required to collect assets, resolve liabilities, and complete distribution.
- During winding up, the trustee may take steps reasonably necessary to collect and preserve trust property, including filing suit to enforce a contract that is a trust asset.
- Objections that administration is being extended too long are generally matters for beneficiaries and the trust’s internal administration, not a defense for third parties sued on obligations owed to the trust.
- Hamilton v. Donahue, 847 So. 2d 1112 (Fla. 4th DCA 2003), supports the rule that trustees retain authority after termination to complete winding up.

## Conclusion

McMullin v. Beaver holds that even when a trust instrument states the trust ends at the settlor’s death, the successor trustee is not stripped of standing to sue on a trust-owned contract filed after death; Florida statutory trustee powers continue through the winding-up period and last until final distribution of trust assets, so summary judgment based solely on “termination at death” was improper.


McMullin v. Beaver, 905 So. 2d 928 (2005)