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Putting a Partnership Interest in a Trust, and What It Costs

Two subsections protect the trustee. The third makes the settlor personally liable.

Section 736.1015 mirrors the general liability rule for one situation, and then adds a trap that catches revocable trusts.

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Quick Overview

A trustee holding a general partner interest

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Below, we walk through the 4 issues that decide whether this is the right move for you. Jump to any one.

  1. Contracts Protected if the fiduciary capacity was disclosed.
  2. A timing limit Only contracts entered after the trust acquired the interest.
  3. Torts No personal liability unless personally at fault.
  4. The trap A revocable trust makes the settlor personally liable.

That’s the quick version. The details below are what decide your situation, and where the costly mistakes hide.

The same two questions as everywhere else

Florida answers trustee liability questions the same way throughout the Code. Contracts turn on how the trustee signed, torts turn on personal fault. Section 736.1013 states the general rule. This section applies it to one situation, a trustee holding a general partnership interest, which needed its own provision because a general partner is ordinarily liable for everything the partnership does.

Unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust’s acquisition of the interest if the fiduciary capacity was disclosed in the contract or in a statement previously filed pursuant to a Uniform Partnership Act or Uniform Limited Partnership Act.

Section 736.1015(1), Florida Statutes.

Three conditions, and each can fail independently. Personal liability must not be imposed in the contract, which a well advised counterparty will try to do. The fiduciary capacity must have been disclosed, either in the contract itself or in a previously filed partnership statement, so a public filing can do the work for every later contract. And the contract must have been entered into after the trust acquired the interest.

That last one is easy to miss and it is a real gap. A partnership’s existing contracts do not come within the protection. A trust that takes on a general partnership interest inherits exposure on everything already signed.

The tort rule

A trustee who holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest unless the trustee is personally at fault.

Section 736.1015(2), Florida Statutes.

Word for word the structure of section 736.1013(2), and it carries the same warning. This is a condition, not an immunity. Where personal fault is genuinely in dispute, the subsection does not resolve anything; it states what the claimant must prove. A federal judge in Florida made exactly that point about the equivalent language in the general provision, denying a trustee’s summary judgment motion that had been built on it.

Subsection (3), and it is the reason to read this page

If the trustee of a revocable trust holds an interest as a general partner, the settlor is personally liable for contracts and other obligations of the partnership as if the settlor were a general partner.

Section 736.1015(3), Florida Statutes.

Read that twice. It is the opposite of what most people expect a trust to do.

Transferring a general partnership interest into a revocable trust does not put a layer between the owner and the partnership’s obligations. The statute reaches through and makes the settlor personally liable as if they were the general partner, for contracts and for other obligations.

The logic is consistent with how Florida treats revocable trusts generally. The settlor can revoke at will, so the property is realistically still theirs, and the same reasoning underlies section 736.0505 on creditors and section 736.1014 on claims after death. A revocable trust is a probate avoidance device, not a liability shield.

The practical point. If asset protection is the reason for moving a general partnership interest, a revocable trust does not achieve it, and this section says so in terms. Whether some other structure does is a different question and depends on facts well beyond this statute.

No Florida court has cited this section

A search returns no citing documents at any precedential status in any court we searched.

So several things are untested. What disclosure suffices under subsection (1), and whether a filing that names a trustee without identifying the capacity is enough. How subsection (3) interacts with a partnership agreement that purports to limit a partner’s exposure. And whether subsection (3) survives the settlor’s death, when the trust ceases to be revocable.

We report the nil result as our own review rather than as a certainty.

A partnership interest held in trust

If the trust is revocable, the protection you were expecting runs the other way.

Frequently Asked Questions

Is a trustee personally liable on a partnership contract?

Not if the fiduciary capacity was disclosed in the contract or in a statement previously filed under a Uniform Partnership Act or Uniform Limited Partnership Act, unless personal liability is imposed in the contract itself.

Which contracts does that cover?

Contracts entered into by the partnership after the trust acquired the interest. Contracts predating the acquisition are outside the protection.

What about torts committed by the partnership?

A trustee holding an interest as general partner is not personally liable for torts committed by the partnership, or for obligations arising from ownership or control of the interest, unless the trustee is personally at fault.

Does putting a general partnership interest in my revocable trust protect me?

No, and the statute is explicit about the opposite. If the trustee of a revocable trust holds an interest as general partner, the settlor is personally liable for the contracts and other obligations of the partnership as if the settlor were a general partner.

Why does the law do that?

Because a revocable trust is a will substitute rather than a separate economic actor. The settlor retains control of the property, and the statute declines to let that arrangement convert general partner exposure into limited exposure.

Has a Florida court interpreted this section?

No. Our review found no citing decision anywhere.

Common Situations

You want to move a partnership interest into a trust. If the trust is revocable, subsection (3) leaves you personally liable.

A trust already holds a general partner interest. Check whether the fiduciary capacity was disclosed, and when.

The partnership signed before the trust acquired. Those contracts are outside subsection (1)'s protection.

A tort claim names the trustee individually. The test is personal fault, and disputed fault does not end it early.

Sources of Law


Updated on August 16, 2026. Reviewed by Kevin D. Klagge, Esq., Fla. Bar No. 99502. Attorney Kevin Klagge represents families, businesses, and international clients in estate and tax planning, business structuring, and international law, with a focus on Florida legal tools. He litigates estate and business issues in court. General information about Florida law and published court decisions, not legal advice, and no attorney-client relationship is created. Reading this page does not make us your lawyers. Please do not send confidential details until we have connected.

Talk through a business interest in a trust

Bring the partnership documents and the trust. Revocable or irrevocable changes the answer.