Mandatory Restricted Depository Arrangements in Probate Questioned [Florida]

Florida statute dictates that when there is just cause a court can authorize that all of the assets of an estate be placed within a restricted depository account, which will only allow withdrawals with a court order. This protection against frivolous and unauthorized spending by the managing person or officer. Under Fla. Stats. §69.031(1), the appropriate reason would be “because the size of the bond required of the officer is burdensome or other cause.” It is the word “other cause” that sent a recent case to the appellate level.

A number of counties opted to impose the restricted depository account on all estate cases within their jurisdiction in a form of blanket policy. It was not dependent on the financial restrictions or abilities of the guardian, executor, trustee, or other form of officer. The Fourth Court of Appeals ruled against the policy of mandatory restricted depository accounts, but did hold that the restricted depository order under appeal would stand as the facts of the case constituted it being appropriate.

If the court’s opinion becomes final, there is a question of what counties that require a mandatory restricted depository account will do to be in compliance. Especially for the counties outside of the jurisdiction of the Fourth Court of Appeals.

See Charles Rubin, Mandatory Restricted Depository Arrangements in Probate Questioned [Florida], Rubin on Tax, January 9, 2019.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.