The Florida Senate

737.504  Powers and duties of trustee of a private foundation trust or a split interest trust.--

(1)  In the exercise of his or her powers, including the powers granted by this part, a trustee has a duty to act with due regard to his or her obligation as a fiduciary, including a duty not to exercise any power in such a way as to:

(a)  Deprive the trust of an otherwise available tax exemption, deduction, or credit for tax purposes.

(b)  Deprive a donor of a trust asset or tax deduction or credit.

(c)  Operate to impose a tax upon a donor, trust, or other person.

"Tax" includes, but is not limited to, any federal, state, or local excise, income, gift, estate, or inheritance tax.

(2)  Except as provided in s. 737.505, a trustee of a private foundation trust shall make distributions at such time and in such manner as not to subject the trust to tax under s. 4942.

(3)  Except as provided in subsection (4) and in s. 737.505, a trustee of a private foundation trust, or a split interest trust to the extent that the split interest trust is subject to the provisions of s. 4947(a)(2), in the exercise of his or her powers shall not:

(a)  Engage in any act of self-dealing as defined in s. 4941(d).

(b)  Retain any excess business holdings as defined in s. 4943(c).

(c)  Make any investments in a manner that subjects the foundation to tax under s. 4944.

(d)  Make any taxable expenditures as defined in s. 4945(d).

(4)  Paragraphs (3)(b) and (c) shall not apply to a split interest trust if:

(a)  All the income interest, and none of the remainder interest, of the trust is devoted solely to one or more of the purposes described in s. 170(c)(2)(B), and all amounts in the trust for which a deduction was allowed under s. 170, s. 545(b)(2), s. 556(b)(2), s. 642(c), s. 2055, s. 2106(a)(2), or s. 2522 have an aggregate fair market value of not more than 60 percent of the aggregate fair market value of all amounts in the trust; or

(b)  A deduction was allowed under s. 170, s. 545(b)(2), s. 556(b)(2), s. 642(c), s. 2055, s. 2106(a)(2), or s. 2522 for amounts payable under the terms of the trust to every remainder beneficiary, but not to any income beneficiary.

History.--s. 1, ch. 74-106; s. 12, ch. 75-221; s. 1, ch. 77-174; s. 1049, ch. 97-102.

Note.--Created from former s. 691.14.