The Short Answer

Sometimes, but it depends on what the trust requires and whether releasing the funds could prejudice someone else’s rights. Under Florida trust law, a trustee generally continues administering the trust, but distributions can be restricted if there is a dispute or if the distribution would conflict with the rights of others who may be affected.

What Florida Law Says

In Florida, whether trust-held funds can be released before a deed is recorded is usually driven by (1) the trust instrument’s terms, (2) the trustee’s fiduciary duties, and (3) whether there is any pending proceeding (like a trust contest or beneficiary dispute) that could make a distribution improper. If there is a proceeding that could affect who is entitled to the property or funds, the trustee must avoid distributions that would undermine the rights of potentially affected persons unless the court authorizes it.

The Statute

The primary law governing this issue is Fla. Stat. § 736.08165.

This statute establishes that while a proceeding about the trust is pending, the trustee continues administration, but may not take actions or make distributions that contravene the rights of persons who may be affected by the outcome—unless the court permits a distribution subject to conditions (such as a bond).

Why You Should Speak with an Attorney

While the statute provides the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:

• Strict Deadlines: If trust property or funds become payable or distributable and then sit untouched, Florida law can treat certain trust-held intangible property as presumed unclaimed after 2 years without owner activity or contact, creating additional compliance risk for the fiduciary. (See Fla. Stat. § 717.1125.)
• Burden of Proof: If someone later challenges the release (for example, arguing the deed transfer was not completed or the beneficiary was not entitled), the trustee may need to justify that the distribution complied with the trust terms and fiduciary duties.
• Exceptions: If there is any contest or proceeding affecting the trust or beneficiaries, distributions that could affect others’ rights may be prohibited unless a court authorizes an exception and may require safeguards like a bond. (See Fla. Stat. § 736.08165.)

Trying to handle this alone can lead to a disputed transfer, personal liability for the trustee, or a court fight over whether the distribution should be clawed back.

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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.