CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. SB 818
Amendment No.
CHAMBER ACTION
Senate House
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11 Senator Grant moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 13, lines 5-15, delete those lines
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16 and insert:
17 Section 6. Paragraphs (c) and (e) of subsection (4) of
18 section 737.303, Florida Statutes, are amended to read:
19 737.303 Duty to inform and account to
20 beneficiaries.--The trustee shall keep the beneficiaries of
21 the trust reasonably informed of the trust and its
22 administration. The trustee's duty to inform and account
23 includes, but is not limited to, the following:
24 (4)
25 (c) In the case of a trust described in s. 733.707(3),
26 the trustee's duties under paragraph (a) extend only to the
27 grantor or beneficiary or the legal representative of the
28 grantor or beneficiary during the grantor's lifetime.
29 (e) All rights provided a beneficiary under this
30 section may be asserted by a legal representative or natural
31 guardian of the beneficiary. Notice under subsection (1) and a
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1 statement of accounts under paragraph (a) provided to a
2 representative of the beneficiary as defined in s. 731.303
3 shall bind the beneficiary and the trustee shall not be
4 required to provide such notice or statement of accounts to
5 any beneficiary who would be bound by an order binding on a
6 representative of the beneficiary under s. 731.303, if such
7 notice or statement of accounts, respectively, is provided to
8 that representative.
9 Section 7. Section 737.308, Florida Statutes, is
10 amended to read:
11 737.308 Notice of trust.--
12 (1) Upon the death of a settlor of a trust described
13 in s. 733.707(3), the trustee must file a notice of trust with
14 the court of the county of the settlor's domicile and the
15 court having jurisdiction of the settlor's estate.
16 (2) The notice of trust must contain the name of the
17 settlor, the settlor's date of death, the title of the trust,
18 if any, the date of the trust, and the name and address of the
19 trustee.
20 (3) If the settlor's probate proceeding has been
21 commenced, the clerk must notify the trustee in writing of the
22 date of the commencement of the probate proceeding and the
23 file number.
24 (4) The clerk shall file and index the notice of trust
25 in the same manner as a caveat, unless there exists a probate
26 proceeding for the settlor's estate in which case the notice
27 of trust must be filed in the probate proceeding and the clerk
28 shall send a copy to the personal representative.
29 (5) The clerk shall send a copy of any caveat filed
30 regarding the settlor to the trustee, and the Notice of Trust
31 to any caveator, unless there is a probate proceeding pending
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1 and the personal representative and the trustee are the same.
2 (6)(5) In any proceeding affecting the expenses of the
3 administration of the estate, or any claims described in s.
4 733.702(1), the trustee of a trust described in s. 733.707(3)
5 is an interested person in the administration of the grantor's
6 estate.
7 (7)(6) Any proceeding affecting the expenses of the
8 administration of the estate or any claims described in s.
9 733.702(1) prior to the trustee filing a notice of trust are
10 binding upon the trustee.
11 (8)(7) The trustee's failure to file the notice of
12 trust does not affect the trustee's obligation to pay expenses
13 of administration and enforceable claims as provided in s.
14 733.607(2).
15 Section 8. Section 518.112, Florida Statutes, is
16 amended to read:
17 518.112 Delegation of investment functions.--
18 (1) A fiduciary may delegate any part or all of the
19 investment functions, with regard to acts constituting
20 investment functions that a prudent investor of comparable
21 skills might delegate under the circumstances, and with regard
22 to all or part of those investment functions, to an investment
23 agent as provided in subsection (3)(2), if the fiduciary
24 exercises reasonable care, judgment, and caution in selecting
25 the investment agent, in establishing the scope and specific
26 terms of any delegation, and in reviewing periodically the
27 agent's actions in order to monitor overall performance and
28 compliance with the scope and specific terms of the
29 delegation.
30 (2)(a) The requirements of subsection (1)
31 notwithstanding, a fiduciary that administers an insurance
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1 contract on the life or lives of one or more persons may
2 delegate without any continuing obligation to review the
3 agent's actions, certain investment functions with respect to
4 any such contract as provided in subsection (3), to any one or
5 more of the following persons as investment agents:
6 1. The trust's settlor if the trust is one described
7 in s. 733.707(3);
8 2. Beneficiaries of the trust or estate, regardless of
9 the beneficiary's interest therein, whether vested or
10 contingent;
11 3. The spouse, ancestor, or descendant of any person
12 described in subparagraphs 1. or 2.;
13 4. Any person or entity nominated by a majority of the
14 beneficiaries entitled to receive notice under subsection
15 (3)(b); or
16 5. An investment agent if the fiduciary exercises
17 reasonable care, judgment, and caution in selecting the
18 investment agent and in establishing the scope and specific
19 terms of any delegation.
20 (b) The delegable investment functions under this
21 subsection include:
22 1. A determination of whether any insurance contract
23 is or remains a proper investment;
24 2. A determination of whether or not to exercise any
25 policy option available under such contracts;
26 3. A determination of whether or not to diversify such
27 contracts relative to one another or to other assets, if any,
28 administered by the fiduciary; or
29 4. An inquiry about changes in the health or financial
30 condition of the insured or insureds relative to any such
31 contract.
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1 (c) Until the contract matures and the policy proceeds
2 are received, a fiduciary that administers insurance contracts
3 under this subsection is not obligated to diversify nor
4 allocate other assets, if any, relative to such insurance
5 contracts.
6 (3)(2) A fiduciary may delegate investment functions
7 to an investment agent under subsections (1) or (2) pursuant
8 to subsection (1), if:
9 (a) The fiduciary exercises reasonable care, judgment,
10 and caution in selecting the investment agent, in establishing
11 the scope and specific terms of any delegation, and in
12 reviewing periodically the agent's actions in order to monitor
13 overall performance and compliance with the scope and specific
14 terms of the delegation.
15 (a)(b) In the case of a guardianship, the fiduciary
16 has obtained court approval.
17 (b)(c) In the case of a trust or estate, the fiduciary
18 has given written notice, of its intention to begin delegating
19 investment functions under this section, to all the
20 beneficiaries, or their legal representative, eligible to
21 receive income from the trust or distributions from the trust
22 or estate within 30 days of the delegation unless such notice
23 is waived by the eligible beneficiaries entitled to receive
24 such notice. This notice shall thereafter, until or unless
25 the beneficiaries eligible to receive income from the trust or
26 distributions from the estate at the time are notified to the
27 contrary, authorize the trustee or legal representative to
28 delegate investment functions pursuant to this subsection.
29 This discretion to revoke the delegation does not imply under
30 subsection (2) any continuing obligation to review the agent's
31 actions.
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1 1. Notice to beneficiaries eligible to receive
2 distributions income from the trust or distributions from the
3 estate, or their legal representatives at the time of
4 delegation, shall be sufficient notice to all persons who may
5 join the eligible class of beneficiaries in the future.
6 2. Additionally, as used herein, legal representative
7 includes one described in s. 731.303, without any requirement
8 of a court order, an attorney-in-fact under a durable power of
9 attorney sufficient to grant such authority, a legally
10 appointed guardian, or equivalent under applicable law, any
11 living, natural guardian of a minor child, or a guardian ad
12 litem. In the case of a minor, notice may be sent to a parent
13 or legal guardian of the minor.
14 3. Written notice shall be:
15 (a) By any form of mail or by any commercial delivery
16 service, approved for service of process by the chief judge of
17 the judicial circuit in which the trust has its principal
18 place of business at the date of notice, requiring a signed
19 receipt;
20 (b) As provided by law for service of process; or
21 (c) By an elisor as may be provided in the Florida
22 Rules of Civil Procedure.
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24 Notice by mail or by approved commercial delivery service is
25 complete on receipt of notice. Proof of notice must be by
26 verified statement of the person mailing or sending notice,
27 and there must be attached thereto the signed receipt or other
28 satisfactory evidence that delivery was effected on the
29 addressee or on the addressee's agent. Proof of notice must be
30 maintained among the trustee's permanent records. In the case
31 of an otherwise incapacitated person, notice may be given to
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1 the guardian of such person or to such person's donee under a
2 durable power of attorney that is sufficient to grant such
3 authority.
4 (4)(3) If all requirements of subsection (3)(2) are
5 satisfied, the fiduciary shall not be responsible otherwise
6 for the investment decisions nor or actions or omissions of
7 the investment agent to which the investment functions are
8 delegated.
9 (5)(4) The investment agent shall, by virtue of
10 acceptance of its appointment, be subject to the jurisdiction
11 of the courts of this state.
12 (6)(5) In performing a delegated function, the
13 investment agent shall be subject to the same standards as the
14 fiduciary.
15 (6) This section applies to all existing and future
16 fiduciary relationships subject to this section, but only as
17 to acts or omissions occurring after October 1, 1993.
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19 (Renumber subsequent sections.)
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22 ================ T I T L E A M E N D M E N T ===============
23 And the title is amended as follows:
24 On page 1, line 27, after the semicolon
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26 insert:
27 amending s. 733.08, F.S.; providing for
28 specified notice to the trustee and caveator;
29 amending s. 518.112, F.S.; providing for
30 delegation of investment functions;
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