CODING: Words stricken are deletions; words underlined are additions.





                                                  SENATE AMENDMENT

    Bill No. CS for SB 298

    Amendment No.    

                            CHAMBER ACTION
              Senate                               House
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10                                                                

11  Senator Geller moved the following amendment:

12

13         Senate Amendment (with title amendment) 

14         Delete everything after the enacting clause

15

16  and insert:

17         Section 1.  Section 732.201, Florida Statutes, is

18  amended to read:

19         732.201  Right to elective share.--The surviving spouse

20  of a person who dies domiciled in Florida has shall have the

21  right to a share of the elective estate of the decedent

22  deceased spouse as provided in this part, to be designated the

23  elective share.

24         Section 2.  Section 732.2025, Florida Statutes, is

25  created to read:

26         732.2025  Definitions.--As used in sections

27  732.2025-732.2155, the term:

28         (1)  "Direct recipient" means the decedent's probate

29  estate and any other person who receives property included in

30  the elective estate by transfer from the decedent, including

31  transfers described in s. 732.2035(8), by right of

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 1  survivorship, or by beneficiary designation under a governing

 2  instrument. For this purpose, a beneficiary of an insurance

 3  policy on the decedent's life, the net cash surrender value of

 4  which is included in the elective estate, is treated as having

 5  received property included in the elective estate. In the case

 6  of property held in trust, "direct recipient" includes the

 7  trustee but excludes the beneficiaries of the trust.

 8         (2)  "Elective share trust" means a trust where:

 9         (a)  The surviving spouse is entitled for life to the

10  use of the property or to all of the income payable at least

11  as often as annually;

12         (b)  The trust is subject to the provisions of s.

13  738.12 or the surviving spouse has the right under the terms

14  of the trust or state law to require the trustee either to

15  make the property productive or to convert it within a

16  reasonable time; and

17         (c)  During the spouse's life, no person other than the

18  spouse has the power to distribute income or principal to

19  anyone other than the spouse.

20         (3)  "General power of appointment" means a power of

21  appointment under which the holder of the power, whether or

22  not the holder has the capacity to exercise it, has the power

23  to create a present or future interest in the holder, the

24  holder's estate, or the creditors of either. The term includes

25  a power to consume or invade the principal of a trust, but

26  only if the power is not limited by an ascertainable standard

27  relating to the holder's health, education, support, or

28  maintenance.

29         (4)  "Governing instrument" means a deed; will; trust;

30  insurance or annuity policy; account with payable-on-death

31  designation; security registered in beneficiary form (TOD);

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 1  pension, profit-sharing, retirement, or similar benefit plan;

 2  an instrument creating or exercising a power of appointment or

 3  a power of attorney; or a dispositive, appointive, or

 4  nominative instrument of any similar type.

 5         (5)  "Payor" means an insurer, business entity,

 6  employer, government, governmental agency or subdivision, or

 7  any other person, other than the decedent's personal

 8  representative or a trustee of a trust created by the

 9  decedent, authorized or obligated by law or a governing

10  instrument to make payments.

11         (6)  "Person" includes an individual, trust, estate,

12  partnership, association, company, or corporation.

13         (7)  "Probate estate" means all property wherever

14  located that is subject to estate administration in any state

15  of the United States or in the District of Columbia.

16         (8)  "Qualifying special needs trust" or "supplemental

17  needs trust" means a trust established for an ill or disabled

18  surviving spouse with court approval before or after a

19  decedent's death for such incapacitated surviving spouse, if,

20  commencing on the decedent's death:

21         (a)  The income and principal are distributable to or

22  for the benefit of the spouse for life in the discretion of

23  one or more trustees less than half of whom are ineligible

24  family trustees.  For purposes of this paragraph, ineligible

25  family trustees include the decedent's grandparents and any

26  descendants of the decedent's grandparents who are not also

27  descendants of the surviving spouse; and

28         (b)  During the spouse's life, no person other than the

29  spouse has the power to distribute income or principal to

30  anyone other than the spouse.

31         (c)  The requirement for court approval and the

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 1  limitation on ineligible family trustees shall not apply if

 2  the aggregate of the trust property as of the applicable

 3  valuation date in a qualifying special needs trust is less

 4  than $100,000.

 5         (9)  "Revocable trust" means a trust that is includable

 6  in the elective estate under s. 732.2035(4).

 7         (10)  "Transfer in satisfaction of the elective share"

 8  means an irrevocable transfer by the decedent to an elective

 9  share trust.

10         (11)  "Transfer tax value" means the value the interest

11  would have for purposes of the United States estate and gift

12  tax laws if it passed without consideration to an unrelated

13  person on the applicable valuation date.

14         Section 3.  Section 732.206, Florida Statutes, is

15  transferred, renumbered as section 732.2035, Florida Statutes,

16  and amended to read:

17         (Substantial rewording of section. See

18         s. 732.206, F.S., for present text.)

19         732.2035  Property entering into elective

20  estate.--Except as provided in s. 732.2045, the elective

21  estate consists of the sum of the values as determined under

22  s. 732.2055 of the following property interests:

23         (1)  The decedent's probate estate.

24         (2)  The decedent's ownership interest in accounts or

25  securities registered in "Pay On Death," "Transfer On Death,"

26  "In Trust For," or coownership with right of survivorship

27  form.  For this purpose, "decedent's ownership interest" means

28  that portion of the accounts or securities which the decedent

29  had, immediately before death, the right to withdraw or use

30  without the duty to account to any person.

31         (3)  The decedent's fractional interest in property,

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 1  other than property described in subsection (2) or subsection

 2  (7), held by the decedent in joint tenancy with right of

 3  survivorship or in tenancy by the entirety. For this purpose,

 4  "decedent's fractional interest in property" means the value

 5  of the property divided by the number of tenants.

 6         (4)  That portion of property, other than property

 7  described in subsection (2), transferred by the decedent to

 8  the extent that at the time of the decedent's death the

 9  transfer was revocable by the decedent alone or in conjunction

10  with any other person. This subsection does not apply to a

11  transfer that is revocable by the decedent only with the

12  consent of all persons having a beneficial interest in the

13  property.

14         (5)(a)  That portion of property, other than property

15  described in subsection (3), subsection (4), or subsection

16  (7), transferred by the decedent to the extent that at the

17  time of the decedent's death:

18         1.  The decedent possessed the right to, or in fact

19  enjoyed the possession or use of, the income or principal of

20  the property; or

21         2.  The principal of the property could, in the

22  discretion of any person other than the spouse of the

23  decedent, be distributed or appointed to or for the benefit of

24  the decedent.

25

26  In the application of this subsection, a right to payments

27  from an annuity or under a similar contractual arrangement

28  shall be treated as a right to that portion of the income of

29  the property necessary to equal the annuity or other

30  contractual payment.

31         (b)  The amount included under this subsection is:

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 1         1.  With respect to subparagraph (a)1., the value of

 2  the portion of the property to which the decedent's right or

 3  enjoyment related, to the extent the portion passed to or for

 4  the benefit of any person other than the decedent's probate

 5  estate; and

 6         2.  With respect to subparagraph (a)2., the value of

 7  the portion subject to the discretion, to the extent the

 8  portion passed to or for the benefit of any person other than

 9  the decedent's probate estate.

10         (c)  This subsection does not apply to any property if

11  the decedent's only interests in the property are that:

12         1.  The property could be distributed to or for the

13  benefit of the decedent only with the consent of all persons

14  having a beneficial interest in the property; or

15         2.  The income or principal of the property could be

16  distributed to or for the benefit of the decedent only through

17  the exercise or in default of an exercise of a general power

18  of appointment held by any person other than the decedent; or

19         3.  The income or principal of the property is or could

20  be distributed in satisfaction of the decedent's obligation of

21  support; or

22         4.  The decedent had a contingent right to receive

23  principal, other than at the discretion of any person, which

24  contingency was beyond the control of the decedent and which

25  had not in fact occurred at the decedent's death.

26         (6)  The decedent's beneficial interest in the net cash

27  surrender value immediately before death of any policy of

28  insurance on the decedent's life.

29         (7)  The value of amounts payable to or for the benefit

30  of any person by reason of surviving the decedent under any

31  public or private pension, retirement, or deferred

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 1  compensation plan, or any similar arrangement, other than

 2  benefits payable under the federal Railroad Retirement Act or

 3  the federal Social Security System. In the case of a defined

 4  contribution plan as defined in s. 414(i) of the Internal

 5  Revenue Code of 1986, as amended, this subsection shall not

 6  apply to the excess of the proceeds of any insurance policy on

 7  the decedent's life over the net cash surrender value of the

 8  policy immediately before the decedent's death.

 9         (8)  Property that was transferred during the 1-year

10  period preceding the decedent's death as a result of a

11  transfer by the decedent if the transfer was either of the

12  following types:

13         (a)  Any property transferred as a result of the

14  termination of a right or interest in, or power over, property

15  that would have been included in the elective estate under

16  subsection (4) or subsection (5) if the right, interest, or

17  power had not terminated until the decedent's death.

18         (b)  Any transfer of property to the extent not

19  otherwise included in the elective estate, made to or for the

20  benefit of any person, except:

21         1.  Any transfer of property for medical or educational

22  expenses to the extent it qualifies for exclusion from the

23  United States gift tax under s. 2503(e) of the Internal

24  Revenue Code, as amended; and

25         2.  After the application of paragraph (b)1., the first

26  $10,000 of property transferred to or for the benefit of each

27  donee during the 1-year period, but only to the extent the

28  transfer qualifies for exclusion from the United States gift

29  tax under s. 2503(b) or s. 2503(c) of the Internal Revenue

30  Code, as amended.

31         (c)  Except as provided in paragraph (d), for purposes

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 1  of this subsection:

 2         1.  A "termination" with respect to a right or interest

 3  in property occurs when the decedent transfers or relinquishes

 4  the right or interest, and, with respect to a power over

 5  property, a termination occurs when the power terminates by

 6  exercise, release, lapse, default, or otherwise.

 7         2.  A distribution from a trust the income or principal

 8  of which is subject to subsection (4), subsection (5), or

 9  subsection (9) shall be treated as a transfer of property by

10  the decedent and not as a termination of a right or interest

11  in, or a power over, property.

12         (d)  Notwithstanding anything in paragraph (c) to the

13  contrary:

14         1.  A "termination" with respect to a right or interest

15  in property does not occur when the right or interest

16  terminates by the terms of the governing instrument unless the

17  termination is determined by reference to the death of the

18  decedent and the court finds that a principal purpose for the

19  terms of the instrument relating to the termination was

20  avoidance of the elective share.

21         2.  A distribution from a trust is not subject to this

22  subsection if the distribution is required by the terms of the

23  governing instrument unless the event triggering the

24  distribution is determined by reference to the death of the

25  decedent and the court finds that a principal purpose of the

26  terms of the governing instrument relating to the distribution

27  is avoidance of the elective share.

28         (9)  Property transferred in satisfaction of the

29  elective share.

30         Section 4.  Section 732.2045, Florida Statutes, is

31  created to read:

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 1         732.2045  Exclusions and overlapping application.--

 2         (1)  EXCLUSIONS.--Section 732.2035 does not apply to:

 3         (a)  Except as provided in s. 732.2155(4), any transfer

 4  of property by the decedent to the extent the transfer is

 5  irrevocable before the effective date of this subsection or

 6  after that date but before the date of the decedent's marriage

 7  to the surviving spouse.

 8         (b)  Any transfer of property by the decedent to the

 9  extent the decedent received adequate consideration in money

10  or money's worth for the transfer.

11         (c)  Any transfer of property by the decedent made with

12  the written consent of the decedent's spouse. For this

13  purpose, spousal consent to split-gift treatment under the

14  United States gift tax laws does not constitute written

15  consent to the transfer by the decedent.

16         (d)  The proceeds of any policy of insurance on the

17  decedent's life in excess of the net cash surrender value of

18  the policy whether payable to the decedent's estate, a trust,

19  or in any other manner.

20         (e)  Any policy of insurance on the decedent's life

21  maintained pursuant to a court order.

22         (f)  The decedent's one-half of the property to which

23  ss. 732.216-732.228 apply and real property that is community

24  property under the laws of the jurisdiction where it is

25  located.

26         (g)  Property held in a qualifying special needs trust

27  on the date of the decedent's death.

28         (h)  Property included in the gross estate of the

29  decedent for federal estate tax purposes solely because the

30  decedent possessed a general power of appointment.

31         (2)  OVERLAPPING APPLICATION.--If s. 732.2035(1) and

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 1  any other subsection of s. 732.2035 apply to the same property

 2  interest, the amount included in the elective estate under

 3  other subsections is reduced by the amount included under

 4  subsection (1). In all other cases, if more than one

 5  subsection of s. 732.2035 applies to a property interest, only

 6  the subsection resulting in the largest elective estate shall

 7  apply.

 8         Section 5.  Section 732.2055, Florida Statutes, is

 9  created to read:

10         732.2055  Valuation of the elective estate.--For

11  purposes of s. 732.2035, "value" means:

12         (1)  In the case of any policy of insurance on the

13  decedent's life includable under s. 732.2035(4), (5), or (6),

14  the net cash surrender value of the policy immediately before

15  the decedent's death.

16         (2)  In the case of any policy of insurance on the

17  decedent's life includable under s. 732.2035(8), the net cash

18  surrender value of the policy on the date of the termination

19  or transfer.

20         (3)  In the case of amounts includable under s.

21  732.2035(7), the transfer tax value of the amounts on the date

22  of the decedent's death.

23         (4)  In the case of other property included under s.

24  732.2035(8), the fair-market value of the property on the date

25  of the termination or transfer, computed after deducting any

26  mortgages, liens, or security interests on the property as of

27  that date.

28         (5)  In the case of all other property, the fair-market

29  value of the property on the date of the decedent's death,

30  computed after deducting from the total value of the property:

31         (a)  All claims, other than claims for funeral

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 1  expenses, paid or payable from the elective estate; and

 2         (b)  To the extent they are not deducted under

 3  paragraph (a), all mortgages, liens, or security interests on

 4  the property.

 5         Section 6.  Section 732.207, Florida Statutes, is

 6  transferred, renumbered as section 732.2065, Florida Statutes,

 7  and amended to read:

 8         732.2065 732.207  Amount of the elective share.--The

 9  elective share is shall consist of an amount equal to 30

10  percent of the elective estate. fair market value, on the date

11  of death, of all assets referred to in s. 732.206, computed

12  after deducting from the total value of the assets:

13         (1)  All valid claims against the estate paid or

14  payable from the estate; and

15         (2)  All mortgages, liens, or security interests on the

16  assets.

17         Section 7.  Section 732.209, Florida Statutes, is

18  transferred, renumbered as section 732.2075, Florida Statutes,

19  and amended to read:

20         (Substantial rewording of section.  See

21         s. 732.209, F.S., for present text.)

22         732.2075  Sources from which elective share payable;

23  abatement.--

24         (1)  Unless otherwise provided in the decedent's will

25  or, in the absence of a provision in the decedent's will, in a

26  trust referred to in the decedent's will, the following are

27  applied first to satisfy the elective share:

28         (a)  To the extent paid to or for the benefit of the

29  surviving spouse, the proceeds of any term or other policy of

30  insurance on the decedent's life if, at the time of decedent's

31  death, the policy was owned by any person other than the

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 1  surviving spouse.

 2         (b)  To the extent paid to or for the benefit of the

 3  surviving spouse, amounts payable under any plan or

 4  arrangement described in s. 732.2035(7).

 5         (c)  To the extent paid to or for the benefit of the

 6  surviving spouse, the decedent's one-half of any property

 7  described in s. 732.2045(1)(f).

 8         (d)  Property held for the benefit of the surviving

 9  spouse in a qualifying special needs trust.

10         (e)  Property interests included in the elective estate

11  that pass or have passed to or for the benefit of the

12  surviving spouse.

13         (f)  Property interests that would have satisfied the

14  elective share under any preceding paragraph of this

15  subsection but were disclaimed.

16         (2)  If, after the application of subsection (1), the

17  elective share is not fully satisfied, the unsatisfied balance

18  shall be apportioned among the direct recipients of the

19  remaining elective estate in the following order of priority:

20         (a)  Class 1.--The decedent's probate estate and

21  revocable trusts.

22         (b)  Class 2.--Recipients of property interests

23  included in the elective estate under s. 732.2035(2), (3), or

24  (6) and, to the extent the decedent had at the time of death

25  the power to designate the recipient of the property, property

26  interests included under s. 732.2035(5) and (7).

27         (c)  Class 3.--Recipients of all other property

28  interests included in the elective estate except interests for

29  which a charitable deduction with respect to the transfer of

30  the property was allowed or allowable to the decedent or the

31  decedent's spouse under the United States gift tax laws.

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 1         (3)  The contribution required of the decedent's

 2  probate estate and revocable trusts may be made in cash or in

 3  kind. In the application of this subsection, subsections (4)

 4  and (5) are to be applied to charge contribution for the

 5  elective share to the beneficiaries of the probate estate and

 6  revocable trusts as if all beneficiaries were taking under a

 7  common governing instrument.

 8         (4)  Unless otherwise provided in the decedent's will

 9  or, in the absence of a provision in the decedent's will, in a

10  trust referred to in the decedent's will, any amount to be

11  satisfied from the decedent's probate estate, other than from

12  property passing to an inter vivos trust, shall be paid from

13  the assets of the probate estate in the order prescribed in s.

14  733.805.

15         (5)  Unless otherwise provided in the trust instrument

16  or, in the decedent's will if there is no provision in the

17  trust instrument, any amount to be satisfied from trust

18  property shall be paid from the assets of the trust in the

19  order provided for claims under s. 737.3054(2) and (3). A

20  direction in the decedent's will is effective only for

21  revocable trusts.

22         Section 8.  Section 732.2085, Florida Statutes, is

23  created to read:

24         732.2085  Liability of direct recipients and

25  beneficiaries.--

26         (1)  Only direct recipients of property included in the

27  elective estate and the beneficiaries of the decedent's

28  probate estate or of any trust that is a direct recipient, are

29  liable to contribute toward satisfaction of the elective

30  share.

31         (a)  Within each of the classes described in s.

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 1  732.2075(2)(b) and (c), each direct recipient is liable in an

 2  amount equal to the value, as determined under s. 732.2055, of

 3  the proportional part of the liability for all members of the

 4  class.

 5         (b)  Trust and probate estate beneficiaries who receive

 6  a distribution of principal after the decedent's death are

 7  liable in an amount equal to the value of the principal

 8  distributed to them multiplied by the contribution percentage

 9  of the distributing trust or estate. For this purpose,

10  "contribution percentage" means the remaining unsatisfied

11  balance of the trust or estate at the time of the distribution

12  divided by the value of the trust or estate as determined

13  under s. 732.2055. "Remaining unsatisfied balance" means the

14  amount of liability initially apportioned to the trust or

15  estate reduced by amounts or property previously contributed

16  by any person in satisfaction of that liability.

17         (2)  In lieu of paying the amount for which they are

18  liable, beneficiaries who have received a distribution of

19  property included in the elective estate and direct recipients

20  other than the decedent's probate estate or revocable trusts,

21  may:

22         (a)  Contribute a proportional part of all property

23  received; or

24         (b)  With respect to any property interest received

25  before the date of the court's order of contribution:

26         1.  Contribute all of the property; or

27         2.  If the property has been sold or exchanged prior to

28  the date on which the spouse's election is filed, pay an

29  amount equal to the value of the property, less reasonable

30  costs of sale, on the date it was sold or exchanged.

31

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 1  In the application of paragraph (a), the "proportional part of

 2  all property received" is determined separately for each class

 3  of priority under s. 732.2075(2).

 4         (3)  If a person pays the value of the property on the

 5  date of a sale or exchange or contributes all of the property

 6  received, as provided in paragraph (2)(b):

 7         (a)  No further contribution toward satisfaction of the

 8  elective share shall be required with respect to such

 9  property.

10         (b)  Any unsatisfied contribution is treated as

11  additional unsatisfied balance and reapportioned to other

12  recipients as provided in s. 732.2075 and this section.

13         (4)  If any part of s. 732.2035 or s. 732.2075 is

14  preempted by federal law with respect to a payment, an item of

15  property, or any other benefit included in the elective

16  estate, a person who, not for value, receives the payment,

17  item of property, or any other benefit is obligated to return

18  the payment, item of property, or benefit, or is personally

19  liable for the amount of the payment or the value of that item

20  of property or benefit, as provided in s. 732.2035 and s.

21  732.2075, to the person who would have been entitled to it

22  were that section or part of that section not preempted.

23         Section 9.  Section 732.2095, Florida Statutes, is

24  created to read:

25         732.2095  Valuation of property used to satisfy

26  elective share.--

27         (1)  DEFINITIONS.--As used in this section, the term:

28         (a)  "Applicable valuation date" means:

29         1.  In the case of transfers in satisfaction of the

30  elective share, the date of the decedent's death.

31         2.  In the case of property held in a qualifying

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 1  special needs trust on the date of the decedent's death, the

 2  date of the decedent's death.

 3         3.  In the case of other property irrevocably

 4  transferred to or for the benefit of the surviving spouse

 5  during the decedent's life, the date of the transfer.

 6         4.  In the case of property distributed to the

 7  surviving spouse by the personal representative, the date of

 8  distribution.

 9         5.  Except as provided in subparagraphs 1., 2., and 3.,

10  in the case of property passing in trust for the surviving

11  spouse, the date or dates the trust is funded in satisfaction

12  of the elective share.

13         6.  In the case of property described in s. 732.2035(3)

14  or (4), the date of the decedent's death.

15         7.  In the case of proceeds of any policy of insurance

16  payable to the surviving spouse, the date of the decedent's

17  death.

18         8.  In the case of amounts payable to the surviving

19  spouse under any plan or arrangement described in s.

20  732.2035(7), the date of the decedent's death.

21         9.  In all other cases, the date of the decedent's

22  death or the date the surviving spouse first comes into

23  possession of the property, whichever occurs later.

24         (b)  "Qualifying power of appointment" means a general

25  power of appointment that is exercisable alone and in all

26  events by the decedent's spouse in favor of the spouse or the

27  spouse's estate. For this purpose, a general power to appoint

28  by will is a qualifying power of appointment if the power may

29  be exercised by the spouse in favor of the spouse's estate

30  without the consent of any other person.

31         (c)  "Qualifying invasion power" means a power held by

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 1  the surviving spouse or the trustee of an elective share trust

 2  to invade trust principal for the health, support, and

 3  maintenance of the spouse. The power may, but need not,

 4  provide that the other resources of the spouse are to be taken

 5  into account in any exercise of the power.

 6         (2)  Except as provided in this subsection, the value

 7  of property for purposes of s. 732.2075 is the fair market

 8  value of the property on the applicable valuation date.

 9         (a)  If the surviving spouse has a life interest in

10  property not in trust that entitles the spouse to the use of

11  the property for life, the value of the spouse's interest is

12  one-half of the value of the property on the applicable

13  valuation date.

14         (b)  If the surviving spouse has an interest in a

15  trust, or portion of a trust, which meets the requirements of

16  an elective share trust, the value of the spouse's interest is

17  a percentage of the value of the principal of the trust, or

18  trust portion, on the applicable valuation date as follows:

19         1.  One hundred percent if the trust instrument

20  includes both a qualifying invasion power and a qualifying

21  power of appointment.

22         2.  Eighty percent if the trust instrument includes a

23  qualifying invasion power but no qualifying power of

24  appointment.

25         3.  Fifty percent in all other cases.

26         (c)  If the surviving spouse is a beneficiary of a

27  trust, or portion of a trust, which meets the requirements of

28  a qualifying special needs trust, the value of the principal

29  of the trust, or trust portion, on the applicable valuation

30  date.

31         (d)  If the surviving spouse has an interest in a trust

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 1  that does not meet the requirements of an elective share

 2  trust, the value of the spouse's interest is the transfer tax

 3  value of the interest on the applicable valuation date;

 4  however, the aggregate value of all of the spouse's interests

 5  in the trust shall not exceed one-half of the value of the

 6  trust principal on the applicable valuation date.

 7         (e)  In the case of any policy of insurance on the

 8  decedent's life the proceeds of which are payable outright or

 9  to a trust described in paragraph (b), paragraph (c), or

10  paragraph (d), the value of the policy for purposes of s.

11  732.2075 and paragraphs (b), (c), and (d) is the net proceeds.

12         (f)  In the case of a right to one or more payments

13  from an annuity or under a similar contractual arrangement or

14  under any plan or arrangement described in s. 732.2035(7), the

15  value of the right to payments for purposes of s. 732.2075 and

16  paragraphs (b), (c), and (d) is the transfer tax value of the

17  right on the applicable valuation date.

18         Section 10.  Section 732.208, Florida Statutes, is

19  transferred, renumbered as section 732.2105, Florida Statutes,

20  and amended to read:

21         732.2105 732.208  Effect of election on other interests

22  Interests in addition to elective share.--

23         (1)  The elective share shall be in addition to

24  homestead, exempt property, and allowances as provided in part

25  IV.

26         (2)  If an election is filed, the balance of the

27  elective estate, after the application of s. 732.2145(1),

28  shall be administered as though the surviving spouse had

29  predeceased the decedent.

30         Section 11.  Section 732.2115, Florida Statutes, is

31  created to read:

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 1         732.2115  Protection of payors and other third

 2  parties.--Although a property interest is included in the

 3  decedent's elective estate under s. 732.2035(2)-(8), a payor

 4  or other third party is not liable for paying, distributing,

 5  or transferring the property to a beneficiary designated in a

 6  governing instrument, or for taking any other action in

 7  good-faith reliance on the validity of a governing instrument.

 8         Section 12.  Section 732.210, Florida Statutes, is

 9  transferred, renumbered as section 732.2125, Florida Statutes,

10  and amended to read:

11         732.2125 732.210  Right of election; by whom

12  exercisable.--The right of election may be exercised:

13         (1)  By the surviving spouse.

14         (2)  By an attorney in fact or a guardian of the

15  property of the surviving spouse, with approval of. the court

16  having jurisdiction of the probate proceeding. The court shall

17  determine the election as the best interests of the surviving

18  spouse, during the spouse's probable lifetime, require.

19         Section 13.  Section 732.212, Florida Statutes, is

20  transferred, renumbered as section 732.2135, Florida Statutes,

21  and amended to read:

22         (Substantial rewording of section.  See

23         s. 732.212, F.S., for present text.)

24         732.2135  Time of election; extensions; withdrawal.--

25         (1)  Except as provided in subsection (2), the election

26  must be filed within the earlier of 6 months of the date of

27  the first publication of notice of administration or 2 years

28  after the date of the decedent's death.

29         (2)  Within the period provided in subsection (1), the

30  surviving spouse or an attorney in fact or guardian of the

31  property of the surviving spouse may petition the court for an

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                                                  SENATE AMENDMENT

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 1  extension of time for making an election. After notice and

 2  hearing, the court for good cause shown may extend the time

 3  for election. If the court grants the petition for an

 4  extension, the election must be filed within the time allowed

 5  by the extension.

 6         (3)  The surviving spouse or an attorney in fact,

 7  guardian of the property, or personal representative of the

 8  surviving spouse may withdraw an election at any time within 8

 9  months of the decedent's death and before the court's order of

10  contribution. If an election is withdrawn, the court may

11  assess attorney's fees and costs against the surviving spouse

12  or the spouse's estate.

13         (4)  A petition for an extension of the time for making

14  the election or for approval to make the election shall toll

15  the time for making the election.

16         Section 14.  Section 732.2145, Florida Statutes, is

17  created to read:

18         732.2145  Order of contribution; personal

19  representative's duty to collect contribution.--

20         (1)  The court shall determine the elective share and

21  shall order contribution. All contributions are to bear

22  interest at the statutory rate provided in s. 55.03(1)

23  beginning 90 days from the date of the order. The order of

24  contribution is prima facie correct in proceedings in any

25  court or jurisdiction.

26         (2)  Except as provided in subsection (3), the personal

27  representative shall collect contribution from the recipients

28  of the elective estate as provided in the court's order of

29  contribution.

30         (a)  If property within the possession or control of

31  the personal representative is distributable to a beneficiary

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 1  or trustee who is required to contribute in satisfaction of

 2  the elective share, the personal representative shall withhold

 3  from the distribution the contribution required of the

 4  beneficiary or trustee.

 5         (b)  If, after the order of contribution, the personal

 6  representative brings an action to collect contribution from

 7  property not within the personal representative's control, the

 8  judgment shall include the personal representative's costs and

 9  reasonable attorney's fees. The personal representative is not

10  required to seek collection of any portion of the elective

11  share from property not within the personal representative's

12  control until after the entry of the order of contribution.

13         (3)  A personal representative who has the duty under

14  this section of enforcing contribution may be relieved of that

15  duty by an order of the court finding that it is impracticable

16  to enforce contribution in view of the improbability of

17  obtaining a judgment or the improbability of collection under

18  any judgment that might be obtained, or otherwise. The

19  personal representative shall not be liable for failure to

20  attempt collection if the attempt would have been economically

21  impracticable.

22         (4)  Nothing in this section limits the independent

23  right of the surviving spouse to collect the elective share as

24  provided in the order of contribution and that right is hereby

25  conferred. If the surviving spouse brings an action to enforce

26  an order of contribution, the judgment shall include the

27  surviving spouse's costs and reasonable attorney's fees.

28         Section 15.  Section 732.2155, Florida Statutes, is

29  created to read:

30         732.2155  Effective date; effect of prior waivers;

31  transition rules.--

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                                                  SENATE AMENDMENT

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 1         (1)  Sections 732.201-732.2155 are effective on October

 2  1, 1999, for all decedents dying on or after October 1, 2001.

 3  The law in effect prior to October 1, 1999, applies to

 4  decedents dying before October 1, 2001.

 5         (2)  Nothing in ss. 732.201-732.2155 modifies or

 6  applies to the rights of spouses under chapter 61.

 7         (3)  A waiver of elective share rights before the

 8  effective date of this section which is otherwise in

 9  compliance with the requirements of s. 732.702 is a waiver of

10  all rights under ss. 732.201-732.2145.

11         (4)  Notwithstanding anything in s. 732.2045(1)(a) to

12  the contrary, any trust created by the decedent before the

13  effective date of this section that meets the requirements of

14  an elective share trust is treated as if the decedent created

15  the trust after the effective date of this subsection and in

16  satisfaction of the elective share.

17         (5)  Sections 732.201-732.2155 do not affect any

18  interest in contracts entered into for adequate consideration

19  in money or money's worth before October 1, 1999, to the

20  extent that the contract was irrevocable at all times from

21  October 1, 1999, until the date of the decedent's death.

22         Section 16.  Sections 732.205, 732.211, 732.213,

23  732.214, and 732.215, Florida Statutes, are repealed.

24         Section 17.  This act shall take effect October 1,

25  1999.

26

27

28  ================ T I T L E   A M E N D M E N T ===============

29  And the title is amended as follows:

30         Delete everything before the enacting clause

31

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 1  and insert:

 2                      A bill to be entitled

 3         An act relating to probate; amending s.

 4         732.201, F.S.; revising provisions governing

 5         the right to elective share; creating s.

 6         732.2025, F.S.; providing definitions;

 7         transferring, renumbering, and amending s.

 8         732.206, F.S.; providing for property entering

 9         into the elective estate; creating s. 732.2045,

10         F.S.; providing for exclusions and overlapping

11         application; creating s. 732.2055, F.S.;

12         providing for the valuation of the elective

13         estate; transferring, renumbering, and amending

14         s. 732.207, F.S.; providing for the elective

15         share amount; transferring, renumbering, and

16         amending s. 732.209, F.S.; providing for the

17         sources from which the elective share is

18         payable; providing for abatement; creating s.

19         732.2085, F.S.; providing for the liability of

20         direct recipients and beneficiaries; creating

21         s. 732.2095, F.S.; providing for the valuation

22         of the property used to satisfy the elective

23         share; transferring, renumbering, and amending

24         s. 732.208, F.S.; providing for the effect of

25         the election on other interests; creating s.

26         732.2115, F.S.; providing for the protection of

27         payors and other third parties; transferring,

28         renumbering, and amending s. 732.210, F.S.;

29         providing who may exercise the right of

30         election; transferring, renumbering, and

31         amending  s. 732.212, F.S.; providing for the

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                                                  SENATE AMENDMENT

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 1         time of election; providing for extensions and

 2         for withdrawal; creating s. 732.2145, F.S.;

 3         providing for the order of contribution;

 4         providing for the personal representative's

 5         duty to collect contributions; creating s.

 6         732.2155, F.S.; providing for the effective

 7         date, inapplicability of ch. 61, F.S., the

 8         effect of prior waivers, and transition rules;

 9         repealing s. 732.205, F.S., which provides

10         elective share solely for Florida resident

11         decedent; repealing s. 732.211, F.S., which

12         provides for the effect of the exercise of the

13         right of election; repealing s. 732.213, F.S.,

14         which provides for preexisting right to dower;

15         repealing s. 732.214, F.S., which provides for

16         proceedings on election; repealing s. 732.215,

17         F.S., which provides for the effect of elective

18         share on taxes; providing an effective date.

19

20

21

22

23

24

25

26

27

28

29

30

31

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