Trustees, Executors, and AI: How Technology Is Changing Fiduciary Administration
Technology is reshaping almost every aspect of our lives, and fiduciary administration is no exception. Trustees and executors in Florida are increasingly turning to artificial intelligence (AI) and other digital tools to streamline tasks, reduce errors, and improve transparency. But as with any innovation, the use of AI in fiduciary roles raises important questions about compliance, accountability, and legal risk. At Bleakley Bavol Denman & Grace, we help beneficiaries navigate the complex legal landscape of fiduciary administration. Here’s what you need to know about how AI is changing the field—and how to use it responsibly.
How AI Is Being Used in Fiduciary Roles
AI can support trustees and executors in a number of practical ways:
- Automated accounting and reporting – AI tools can categorize transactions, reconcile accounts, and generate periodic reports required by Florida law.
- Document management – Platforms powered by AI can help fiduciaries store, organize, and retrieve trust documents, wills, deeds, and financial records.
- Communication and transparency – Chatbots and automated messaging tools can assist in answering basic beneficiary inquiries and sending regular updates.
- Predictive analytics – AI can assist in investment decisions by analyzing risk, asset performance, and market trends—helping trustees meet the prudent investor standard.
For fiduciaries handling complex or high-value estates or trusts, these tools can increase efficiency and reduce the chance of administrative oversight.
Legal Considerations: Duty of Care and Accountability
While AI may enhance fiduciary duties, it does not replace them. Florida law holds trustees and executors to high standards of care, loyalty, and transparency. Delegating core responsibilities to technology does not relieve a fiduciary of personal liability. For example, if an AI-powered investment platform underperforms or makes a risky trade, the trustee could still be held liable if they failed to properly monitor or evaluate the platform’s recommendations. Similarly, if a chatbot miscommunicates critical information to beneficiaries, the executor may be responsible for the resulting confusion or harm. The takeaway: AI is a tool, not a substitute for judgment. Fiduciaries must vet and supervise any technologies they use, just as they would oversee human agents.
Best Practices for Using AI in Fiduciary Administration
- Choose technology carefully – Ensure any software or platform complies with relevant state laws, particularly regarding data security and privacy.
- Maintain transparency – Let beneficiaries know if you’re using technology to assist with administration and provide clear documentation.
- Regularly review outputs – AI-generated financial reports or communications should be reviewed for accuracy and context before being distributed.
- Seek legal guidance – Consult with an attorney when integrating new tools into your fiduciary role to ensure compliance and protect against liability.
BBDG Law Can Help You Stay Ahead
At Bleakley Bavol Denman & Grace, we understand both the opportunities and the legal risks associated with emerging technologies. Whether you’re a trustee, executor, or beneficiary, our Tampa estate planning attorneys can advise you on how to use AI tools while upholding your fiduciary responsibilities under Florida law. Contact us today for a consultation to ensure your administration practices are modern, effective, and legally sound.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0736/Sections/0736.0801.html
