Babette Varano v. Steven Varano and Vincent Michael Varano, et al.

Summary

In Varano v. Varano, the Florida Fourth District Court of Appeal affirmed summary judgment, holding that a life tenant who lacked authority to sell the property could not convey a fee simple interest and was not entitled to escrowed sale proceeds. The court emphasized that a life tenant owes a quasi-trustee duty to remaindermen and cannot unilaterally sell the property without a Lady Bird Deed or joinder of remaindermen. Additionally, the widow’s role as trustee of a remainder trust created a conflict of interest, rendering the sale voidable under Florida Statutes § 736.0802.

Holdings

1. A life tenant cannot convey an interest greater than what she owns; she cannot sell a fee simple interest and is not entitled to the proceeds of such a sale. The life tenant's interest is limited to the life estate, and she cannot force a sale on the remaindermen.
2. Even assuming the widow was trustee, she lacked authority to bind the trust because the sale presented a conflict of interest; a trustee must administer the trust solely in the interests of beneficiaries, and a transaction affected by a conflict is voidable unless approved by court or consented to by beneficiary.

Questions Presented

1. Whether a life tenant is entitled to proceeds from the sale of a fee simple interest in property when the deed does not authorize such sale.
2. Whether the widow, as trustee of a remainder trust, had authority to bind the trust to a sale that created a conflict of interest.

Disposition

affirmed