HB 1665

CS

CHAMBER ACTION

1	The Civil Justice Committee recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to disclaimers of property interests;
7	creating the Florida Uniform Disclaimer of Property
8	Interests Act; creating s. 739.101, F.S.; providing a
9	short title; creating s. 739.102, F.S.; defining terms;
10	creating s. 739.103, F.S.; providing the scope of the act;
11	creating s. 739.104, F.S.; prescribing general provisions
12	relating to persons' powers to disclaim an interest in or
13	power over property; creating s. 739.201, F.S.;
14	prescribing rules applicable to a disclaimer of an
15	interest in property; creating s. 739.202, F.S.;
16	prescribing rules applicable to a disclaimer of rights of
17	survivorship in jointly held property; creating s.
18	739.203, F.S.; prescribing rules applicable to a
19	disclaimer of interests in property held as tenancy by the
20	entirety; creating s. 739.204, F.S.; prescribing the
21	effect of a disclaimer of interest by a trustee; creating
22	s. 739.205, F.S.; prescribing rules with respect to a
23	disclaimer of the power of appointment or other power not
24	held in a fiduciary capacity; creating s. 739.206, F.S.;
25	prescribing rules with respect to a disclaimer by the
26	appointee, object, or taker in default of the exercise of
27	power of appointment; creating s. 739.207, F.S.;
28	prescribing rules with respect to the disclaimer of power
29	held in a fiduciary capacity; creating s. 739.301, F.S.;
30	providing guidelines for delivering or filing a
31	disclaimer; creating s. 739.401, F.S.; providing when a
32	disclaimer is permitted; creating s. 739.402, F.S.;
33	providing when a disclaimer is barred or limited; creating
34	s. 739.501, F.S.; prescribing the effect of a tax-
35	qualified disclaimer; creating s. 739.601, F.S.; providing
36	for recording a disclaimer relating to real estate;
37	creating s. 739.701, F.S.; prescribing the application to
38	existing relationships; amending s. 731.201, F.S.;
39	providing applicability of certain definitions to the act;
40	amending ss. 121.091 and 710.121, F.S., to conform;
41	repealing s. 689.21, F.S., relating to disclaimer of
42	interests in property passing under certain
43	nontestamentary instruments or under certain powers of
44	appointment; repealing s. 732.801, F.S., relating to
45	disclaimer of interests in property passing by will or
46	intestate succession or under certain powers of
47	appointment; providing an effective date.
48
49	Be It Enacted by the Legislature of the State of Florida:
50
51	Section 1.  Chapter 739, Florida Statutes, consisting of
52	sections 739.101, 739.102, 739.103, 739.104, 739.201, 739.202,
53	739.203, 739.204, 739.205, 739.206, 739.207, 739.301, 739.401,
54	739.402, 739.501, 739.601, and 739.701, Florida Statutes, is
55	created to read:
56	739.101  Short title.--This chapter may be cited as the
57	"Florida Uniform Disclaimer of Property Interests Act."
58	739.102  Definitions.--As used in this chapter, the term:
59	(1)  "Benefactor" means the creator of the interest that is
60	subject to a disclaimer.
61	(2)  "Beneficiary designation" means an instrument, other
62	than an instrument creating or amending a trust, naming the
63	beneficiary of:
64	(a)  An annuity or insurance policy;
65	(b)  An account with a designation for payment on death;
66	(c)  A security registered in beneficiary form;
67	(d)  A pension, profit-sharing, retirement, or other
68	employment-related benefit plan; or
69	(e)  Any other nonprobate transfer at death.
70	(3)  "Disclaimant" means the person to whom a disclaimed
71	interest or power would have passed had the disclaimer not been
72	made.
73	(4)  "Disclaimed interest" means the interest that would
74	have passed to the disclaimant had the disclaimer not been made.
75	(5)  "Disclaimer" means the refusal to accept an interest
76	in or power over property. The term includes a renunciation.
77	(6)  "Fiduciary" means a personal representative, trustee,
78	agent acting under a power of attorney, guardian, or other
79	person authorized to act as a fiduciary with respect to the
80	property of another person.
81	(7)  "Future interest" means an interest that takes effect
82	in possession or enjoyment, if at all, later than the time of
83	its creation.
84	(8)  "Insolvent" means that the sum of a person's debts is
85	greater than all of the person's assets at fair valuation. A
86	person is presumed to be "insolvent" if the person is generally
87	not paying his or her debts as they become due.
88	(9)  "Jointly held property" means property held in the
89	names of two or more persons under an arrangement in which all
90	holders have concurrent interests and under which the last
91	surviving holder is entitled to the whole of the property.
92	Jointly held property does not include property held as tenants
93	by the entirety.
94	(10)  "Person" includes individuals, ascertained and
95	unascertained, living or not living, whether entitled to an
96	interest by right of intestacy or otherwise; a government,
97	governmental subdivision, agency, or instrumentality; and a
98	public corporation.
99	(11)  "Time of distribution" means the time when a
100	disclaimed interest would have taken effect in possession or
101	enjoyment.
102	(12)  "Trust" means:
103	(a)  An express trust, including an honorary trust or a
104	trust under s. 737.116, charitable or noncharitable, with
105	additions thereto, whenever and however created.
106	(b)  A trust created pursuant to a law, judgment, or decree
107	which requires the trust be administered in the manner of an
108	express trust.
109
110	As used in this chapter, the term "trust" does not include a
111	constructive trust or a resulting trust.
112	739.103  Scope.--This chapter applies to disclaimers of any
113	interest in or power over property, whenever created. Except as
114	provided in s. 739.701, this chapter is the exclusive means by
115	which a disclaimer may be made under the laws of this state.
116	739.104  Power to disclaim; general requirements; when
117	irrevocable.--
118	(1)  A person may disclaim, in whole or in part,
119	conditionally or unconditionally, any interest in or power over
120	property, including a power of appointment. A person may
121	disclaim the interest or power even if its creator imposed a
122	spendthrift provision or similar restriction on transfer or a
123	restriction or limitation on the right to disclaim. A disclaimer
124	shall be unconditional unless the disclaimant explicitly
125	provides otherwise in the disclaimer.
126	(2)  With court approval, a fiduciary may disclaim, in
127	whole or part, any interest in or power over property, including
128	a power of appointment. Without court approval, a fiduciary may
129	disclaim, in whole or in part, any interest in or power over
130	property, including a power of appointment, if and to the extent
131	that the instrument creating the fiduciary relationship
132	explicitly grants the fiduciary the right to disclaim. In the
133	absence of a court-appointed guardian, notwithstanding anything
134	in chapter 744 to the contrary, without court approval, a
135	natural guardian under s. 744.301 may disclaim on behalf of a
136	minor child of the natural guardian, in whole or in part, any
137	interest in or power over property, including a power of
138	appointment, which the minor child is to receive solely as a
139	result of another disclaimer, but only if the disclaimed
140	interest or power does not pass to or for the benefit of the
141	natural guardian as a result of the disclaimer.
142	(3)  To be effective, a disclaimer must be in writing,
143	declare the writing as a disclaimer, describe the interest or
144	power disclaimed, and be signed by the person making the
145	disclaimer and witnessed and acknowledged in the manner provided
146	for deeds of real estate to be recorded in this state. In
147	addition, for a disclaimer to be effective, an original of the
148	disclaimer must be delivered or filed in the manner provided in
149	s. 739.301.
150	(4)  A partial disclaimer may be expressed as a fraction,
151	percentage, monetary amount, term of years, limitation of a
152	power, or any other interest or estate in the property.
153	(5)  A disclaimer becomes irrevocable when any conditions
154	to which the disclaimant has made the disclaimer subject are
155	satisfied and when the disclaimer is delivered or filed pursuant
156	to s. 739.301 or it becomes effective as provided in ss.
157	739.201-739.207, whichever occurs later.
158	(6)  A disclaimer made under this chapter is not a
159	transfer, assignment, or release.
160	739.201  Disclaimer of interest in property.--Except for a
161	disclaimer governed by s. 739.202, s. 739.203, or s. 739.204,
162	the following rules apply to a disclaimer of an interest in
163	property:
164	(1)  The disclaimer takes effect as of the time the
165	instrument creating the interest becomes irrevocable or, if the
166	interest arose under the law of intestate succession, as of the
167	time of the intestate's death.
168	(2)  The disclaimed interest passes according to any
169	provision in the instrument creating the interest providing
170	explicitly for the disposition of the interest, should it be
171	disclaimed, or of disclaimed interests in general.
172	(3)  If the instrument does not contain a provision
173	described in subsection (2), the following rules apply:
174	(a)  If the disclaimant is an individual, the disclaimed
175	interest passes as if the disclaimant had died immediately
176	before the interest was created, unless under the governing
177	instrument or other applicable law the disclaimed interest is
178	contingent on surviving to the time of distribution, in which
179	case the disclaimed interest passes as if the disclaimant had
180	died immediately before the time of distribution. However, if by
181	law or under the governing instrument the descendants of the
182	disclaimant would share in the disclaimed interest by any method
183	of representation had the disclaimant died before the time of
184	distribution, the disclaimed interest passes only to the
185	descendants of the disclaimant who survive the time of
186	distribution. For purposes of this subsection, a disclaimed
187	interest is created at the death of the benefactor or at such
188	earlier time, if any, that the benefactor's transfer of the
189	interest is a completed gift for federal gift tax purposes. Also
190	for purposes of this subsection, a disclaimed interest in a
191	trust described in s. 733.707(3) shall pass as if the interest
192	had been created under a will.
193	(b)  If the disclaimant is not an individual, the
194	disclaimed interest passes as if the disclaimant did not exist.
195	(c)  Upon the disclaimer of a preceding interest, a future
196	interest held by a person other than the disclaimant takes
197	effect as if the disclaimant had died or ceased to exist
198	immediately before the time of distribution, but a future
199	interest held by the disclaimant is not accelerated in
200	possession or enjoyment as a result of the disclaimer.
201	739.202  Disclaimer of rights of survivorship in jointly
202	held property.--
203	(1)  Upon the death of a holder of jointly held property:
204	(a)  If, during the deceased holder's lifetime, the
205	deceased holder could have unilaterally regained a portion of
206	the property attributable to the deceased holder's contributions
207	without the consent of any other holder, another holder may
208	disclaim, in whole or in part, a fractional share of that
209	portion of the property attributable to the deceased holder's
210	contributions determined by dividing the number one by the
211	number of joint holders alive immediately after the death of the
212	holder to whose death the disclaimer relates.
213	(b)  For all other jointly held property, another holder
214	may disclaim, in whole or in part, a fraction of the whole of
215	the property the numerator of which is one and the denominator
216	of which is the product of the number of joint holders alive
217	immediately before the death of the holder to whose death the
218	disclaimer relates multiplied by the number of joint holders
219	alive immediately after the death of the holder to whose death
220	the disclaimer relates.
221	(2)  A disclaimer under subsection (1) takes effect as of
222	the death of the holder of jointly held property to whose death
223	the disclaimer relates.
224	(3)  An interest in jointly held property disclaimed by a
225	surviving holder of the property passes as if the disclaimant
226	predeceased the holder to whose death the disclaimer relates.
227	739.203  Disclaimer of property held as tenancy by the
228	entirety.--
229	(1)  The survivorship interest in property held as a
230	tenancy by the entirety to which the survivor succeeds by
231	operation of law upon the death of the co-tenant may be
232	disclaimed as provided in this chapter. For purposes of this
233	chapter only, the deceased tenant's interest in property held as
234	a tenancy by the entirety shall be deemed to be an undivided
235	one-half interest.
236	(2)  A disclaimer under subsection (1) takes effect as of
237	the death of the deceased tenant to whose death the disclaimer
238	relates.
239	(3)  The survivorship interest in property held as a
240	tenancy by the entirety disclaimed by the surviving tenant
241	passes as if the disclaimant had predeceased the tenant to whose
242	death the disclaimer relates.
243	(4)  A disclaimer of an interest in real property held as
244	tenants by the entirety does not cause the disclaimed interest
245	to be homestead property for purposes of descent and
246	distribution under ss. 732.401 and 732.4015.
247	739.204  Disclaimer of interest by trustee.--If a trustee
248	having the power to disclaim under the instrument creating the
249	fiduciary relationship or pursuant to court order disclaims an
250	interest in property that otherwise would have become trust
251	property, the interest does not become trust property.
252	739.205  Disclaimer of power of appointment or other power
253	not held in a fiduciary capacity.--If a holder disclaims a power
254	of appointment or other power not held in a fiduciary capacity,
255	the following rules apply:
256	(1)  If the holder has not exercised the power, the
257	disclaimer takes effect as of the time the instrument creating
258	the power becomes irrevocable.
259	(2)  If the holder has exercised the power and the
260	disclaimer is of a power other than a presently exercisable
261	general power of appointment, the disclaimer takes effect
262	immediately after the last exercise of the power.
263	(3)  The instrument creating the power is construed as if
264	the power expired when the disclaimer became effective.
265	739.206  Disclaimer by appointee, object, or taker in
266	default of exercise of power of appointment.--
267	(1)  A disclaimer of an interest in property by an
268	appointee of a power of appointment takes effect as of the time
269	the instrument by which the holder exercises the power becomes
270	irrevocable.
271	(2)  A disclaimer of an interest in property by an object,
272	or taker in default of an exercise of a power of appointment,
273	takes effect as of the time the instrument creating the power
274	becomes irrevocable.
275	739.207  Disclaimer of power held in fiduciary capacity.--
276	(1)  If a fiduciary disclaims a power held in a fiduciary
277	capacity which has not been exercised, the disclaimer takes
278	effect as of the time the instrument creating the power becomes
279	irrevocable.
280	(2)  If a fiduciary disclaims a power held in a fiduciary
281	capacity which has been exercised, the disclaimer takes effect
282	immediately after the last exercise of the power.
283	(3)  A disclaimer under this section is effective as to
284	another fiduciary if the disclaimer so provides and the
285	fiduciary disclaiming has the authority to bind the estate,
286	trust, or other person for whom the fiduciary is acting.
287	739.301  Delivery or filing.--
288	(1)  Subject to subsections (2) through (12), delivery of a
289	disclaimer may be effected by personal delivery, first-class
290	mail, or any other method that results in its receipt. A
291	disclaimer sent by first-class mail shall be deemed to have been
292	delivered on the date it is postmarked. Delivery by any other
293	method shall be effective upon receipt by the person to whom the
294	disclaimer is to be delivered under this section.
295	(2)  In the case of a disclaimer of an interest created
296	under the law of intestate succession or an interest created by
297	will, other than an interest in a testamentary trust:
298	(a)  The disclaimer must be delivered to the personal
299	representative of the decedent's estate; or
300	(b)  If no personal representative is serving when the
301	disclaimer is sought to be delivered, the disclaimer must be
302	filed with the clerk of the court in any county where venue of
303	administration would be proper.
304	(3)  In the case of a disclaimer of an interest in a
305	testamentary trust:
306	(a)  The disclaimer must be delivered to the trustee
307	serving when the disclaimer is delivered or, if no trustee is
308	then serving, to the personal representative of the decedent's
309	estate; or
310	(b)  If no personal representative is serving when the
311	disclaimer is sought to be delivered, the disclaimer must be
312	filed with the clerk of the court in any county where venue of
313	administration of the decedent's estate would be proper.
314	(4)  In the case of a disclaimer of an interest in an inter
315	vivos trust:
316	(a)  The disclaimer must be delivered to the trustee
317	serving when the disclaimer is delivered;
318	(b)  If no trustee is then serving, it must be filed with
319	the clerk of the court in any county where the filing of a
320	notice of trust would be proper; or
321	(c)  If the disclaimer is made before the time the
322	instrument creating the trust becomes irrevocable, the
323	disclaimer must be delivered to the grantor of the revocable
324	trust or the transferor of the interest or to such person's
325	legal representative.
326	(5)  In the case of a disclaimer of an interest created by
327	a beneficiary designation made before the time the designation
328	becomes irrevocable, the disclaimer must be delivered to the
329	person making the beneficiary designation or to such person's
330	legal representative.
331	(6)  In the case of a disclaimer of an interest created by
332	a beneficiary designation made after the time the designation
333	becomes irrevocable, the disclaimer must be delivered to the
334	person obligated to distribute the interest.
335	(7)  In the case of a disclaimer by a surviving holder of
336	jointly held property, or by the surviving tenant in property
337	held as a tenancy by the entirety, the disclaimer must be
338	delivered to the person to whom the disclaimed interest passes
339	or, if such person cannot reasonably be located by the
340	disclaimant, the disclaimer must be delivered as provided in
341	subsection (2).
342	(8)  In the case of a disclaimer by an object, or taker in
343	default of exercise, of a power of appointment at any time after
344	the power was created:
345	(a)  The disclaimer must be delivered to the holder of the
346	power or to the fiduciary acting under the instrument that
347	created the power; or
348	(b)  If no fiduciary is serving when the disclaimer is
349	sought to be delivered, the disclaimer must be filed with a
350	court having authority to appoint the fiduciary.
351	(9)  In the case of a disclaimer by an appointee of a
352	nonfiduciary power of appointment:
353	(a)  The disclaimer must be delivered to the holder, the
354	personal representative of the holder's estate, or the fiduciary
355	under the instrument that created the power; or
356	(b)  If no fiduciary is serving when the disclaimer is
357	sought to be delivered, the disclaimer must be filed with a
358	court having authority to appoint the fiduciary.
359	(10)  In the case of a disclaimer by a fiduciary of a power
360	over a trust or estate, the disclaimer must be delivered as
361	provided in subsection (2), subsection (3), or subsection (4) as
362	if the power disclaimed were an interest in property.
363	(11)  In the case of a disclaimer of a power exercisable by
364	an agent, other than a power exercisable by a fiduciary over a
365	trust or estate, the disclaimer must be delivered to the
366	principal or the principal's representative.
367	(12)  Notwithstanding subsection (1), delivery of a
368	disclaimer of an interest in or relating to real estate shall be
369	presumed upon the recording of the disclaimer in the office of
370	the clerk of the court of the county or counties where the real
371	estate is located.
372	(13)  A fiduciary or other person having custody of the
373	disclaimed interest is not liable for any otherwise proper
374	distribution or other disposition made without actual notice of
375	the disclaimer or, if the disclaimer is barred under s. 739.402,
376	for any otherwise proper distribution or other disposition made
377	in reliance on the disclaimer, if the distribution or
378	disposition is made without actual knowledge of the facts
379	constituting the bar of the right to disclaim.
380	739.401  When disclaimer is permitted.--A disclaimer may be
381	made at any time unless barred under s. 739.402.
382	739.402  When disclaimer is barred or limited.--
383	(1)  A disclaimer is barred by a written waiver of the
384	right to disclaim.
385	(2)  A disclaimer of an interest in property is barred if
386	any of the following events occurs before the disclaimer becomes
387	effective:
388	(a)  The disclaimer accepts the interest sought to be
389	disclaimed;
390	(b)  The disclaimant voluntarily assigns, conveys,
391	encumbers, pledges, or transfers the interest sought to be
392	disclaimed or contracts to do so;
393	(c)  The interest sought to be disclaimed is sold pursuant
394	to a judicial sale; or
395	(d)  The disclaimant is insolvent when the disclaimer
396	becomes irrevocable.
397	(3)  A disclaimer, in whole or in part, of the future
398	exercise of a power held in a fiduciary capacity is not barred
399	by its previous exercise.
400	(4)  A disclaimer, in whole or in part, of the future
401	exercise of a power not held in a fiduciary capacity is not
402	barred by its previous exercise unless the power is exercisable
403	in favor of the disclaimant.
404	(5)  A disclaimer of an interest in, or a power over,
405	property which is barred by this section is ineffective.
406	739.501  Tax-qualified disclaimer.--Notwithstanding any
407	other provision of this chapter, if, as a result of a disclaimer
408	or transfer, the disclaimed or transferred interest is treated
409	pursuant to the provisions of s. 2518 of the Internal Revenue
410	Code of 1986 as never having been transferred to the
411	disclaimant, the disclaimer or transfer is effective as a
412	disclaimer under this chapter.
413	739.601  Recording of disclaimer relating to real estate.--
414	(1)  A disclaimer of an interest in or relating to real
415	estate does not provide constructive notice to all persons
416	unless the disclaimer contains a legal description of the real
417	estate to which the disclaimer relates and unless the disclaimer
418	is filed for recording in the office of the clerk of the court
419	in the county or counties where the real estate is located.
420	(2)  An effective disclaimer meeting the requirements of
421	subsection (1) constitutes constructive notice to all persons
422	from the time of filing. Failure to record the disclaimer does
423	not affect its validity as between the disclaimant and persons
424	to whom the property interest or power passes by reason of the
425	disclaimer.
426	739.701  Application to existing relationships.--Except as
427	otherwise provided in s. 739.402, an interest in or power over
428	property existing on July 1, 2005, as to which the time for
429	delivering or filing a disclaimer under laws superseded by this
430	chapter has not expired, may be disclaimed after July 1, 2005.
431	Section 2.  Section 731.201, Florida Statutes, is amended
432	to read:
433	731.201  General definitions.--Subject to additional
434	definitions in subsequent chapters that are applicable to
435	specific chapters or parts, and unless the context otherwise
436	requires, in this code, in s. 409.9101, and in chapters 737,
437	738, 739, and 744, the term:
438	(1)  "Authenticated," when referring to copies of documents
439	or judicial proceedings required to be filed with the court
440	under this code, means shall mean a certified copy or a copy
441	authenticated according to the Federal Rules of Civil Procedure.
442	(2)  "Beneficiary" means heir at law in an intestate estate
443	and devisee in a testate estate. The term "beneficiary" does not
444	apply to an heir at law or a devisee after that person's
445	interest in the estate has been satisfied. In the case of a
446	devise to an existing trust or trustee, or to a trust or trustee
447	described by will, the trustee is a beneficiary of the estate.
448	Except as otherwise provided in this subsection, the beneficiary
449	of the trust is not a beneficiary of the estate of which that
450	trust or the trustee of that trust is a beneficiary. However, if
451	each trustee is also a personal representative of the estate,
452	the beneficiary or beneficiaries of the trust as defined in s.
453	737.303(4)(b) shall be regarded as a beneficiary of the estate.
454	(3)  "Child" includes a person entitled to take as a child
455	under this code by intestate succession from the parent whose
456	relationship is involved, and excludes any person who is only a
457	stepchild, a foster child, a grandchild, or a more remote
458	descendant.
459	(4)  "Claim" means a liability of the decedent, whether
460	arising in contract, tort, or otherwise, and funeral expense.
461	The term does not include an expense of administration or
462	estate, inheritance, succession, or other death taxes.
463	(5)  "Clerk" means the clerk or deputy clerk of the court.
464	(6)  "Court" means the circuit court.
465	(7)  "Curator" means a person appointed by the court to
466	take charge of the estate of a decedent until letters are
467	issued.
468	(8)  "Devise," when used as a noun, means a testamentary
469	disposition of real or personal property and, when used as a
470	verb, means to dispose of real or personal property by will or
471	trust.  The term includes "gift," "give," "bequeath," "bequest,"
472	and "legacy."  A devise is subject to charges for debts,
473	expenses, and taxes as provided in this code, the will, or the
474	trust.
475	(9)  "Devisee" means a person designated in a will or trust
476	to receive a devise. Except as otherwise provided in this
477	subsection, in the case of a devise to an existing trust or
478	trustee, or to a trust or trustee of a trust described by will,
479	the trust or trustee, rather than the beneficiaries of the
480	trust, is the devisee. However, if each trustee is also a
481	personal representative of the estate, the beneficiary or
482	beneficiaries of the trust as defined in s. 737.303(4)(b) shall
483	be regarded as a devisee.
484	(10)  "Distributee" means a person who has received estate
485	property from a personal representative or other fiduciary other
486	than as a creditor or purchaser. A testamentary trustee is a
487	distributee only to the extent of distributed assets or
488	increments to them remaining in the trustee's hands.  A
489	beneficiary of a testamentary trust to whom the trustee has
490	distributed property received from a personal representative is
491	a distributee. For purposes of this provision, "testamentary
492	trustee" includes a trustee to whom assets are transferred by
493	will, to the extent of the devised assets.
494	(11)  "Domicile" means a person's usual place of dwelling
495	and shall be synonymous with residence.
496	(12)  "Estate" means the property of a decedent that is the
497	subject of administration.
498	(13)  "Exempt property" means the property of a decedent's
499	estate which is described in s. 732.402.
500	(14)  "File" means to file with the court or clerk.
501	(15)  "Foreign personal representative" means a personal
502	representative of another state or a foreign country.
503	(16)  "Formal notice" means formal notice under the Florida
504	Probate Rules.
505	(17)  "Grantor" means one who creates or adds to a trust
506	and includes "settlor" or "trustor" and a testator who creates
507	or adds to a trust.
508	(18)  "Heirs" or "heirs at law" means those persons,
509	including the surviving spouse, who are entitled under the
510	statutes of intestate succession to the property of a decedent.
511	(19)  "Incompetent" means a minor or a person adjudicated
512	incompetent.
513	(20)  "Informal notice" or "notice" means informal notice
514	under the Florida Probate Rules.
515	(21)  "Interested person" means any person who may
516	reasonably be expected to be affected by the outcome of the
517	particular proceeding involved. In any proceeding affecting the
518	estate or the rights of a beneficiary in the estate, the
519	personal representative of the estate shall be deemed to be an
520	interested person. In any proceeding affecting the expenses of
521	the administration and obligations of a decedent's estate, or
522	any claims described in s. 733.702(1), the trustee of a trust
523	described in s. 733.707(3) is an interested person in the
524	administration of the grantor's estate. The term does not
525	include a beneficiary who has received complete distribution.
526	The meaning, as it relates to particular persons, may vary from
527	time to time and must be determined according to the particular
528	purpose of, and matter involved in, any proceedings.
529	(22)  "Letters" means authority granted by the court to the
530	personal representative to act on behalf of the estate of the
531	decedent and refers to what has been known as letters
532	testamentary and letters of administration. All letters shall be
533	designated "letters of administration."
534	(23)  "Other state" means any state of the United States
535	other than Florida and includes the District of Columbia, the
536	Commonwealth of Puerto Rico, and any territory or possession
537	subject to the legislative authority of the United States.
538	(24)  "Parent" excludes any person who is only a
539	stepparent, foster parent, or grandparent.
540	(25)  "Personal representative" means the fiduciary
541	appointed by the court to administer the estate and refers to
542	what has been known as an administrator, administrator cum
543	testamento annexo, administrator de bonis non, ancillary
544	administrator, ancillary executor, or executor.
545	(26)  "Petition" means a written request to the court for
546	an order.
547	(27)  "Probate of will" means all steps necessary to
548	establish the validity of a will and to admit a will to probate.
549	(28)  "Property" means both real and personal property or
550	any interest in it and anything that may be the subject of
551	ownership.
552	(29)  "Protected homestead" means the property described in
553	s. 4(a)(1), Art. X of the State Constitution on which at the
554	death of the owner the exemption inures to the owner's surviving
555	spouse or heirs under s. 4(b), Art. X of the State Constitution.
556	For purposes of the code, real property owned as tenants by the
557	entirety is not protected homestead.
558	(30)  "Residence" means a person's place of dwelling.
559	(31)  "Residuary devise" means a devise of the assets of
560	the estate which remain after the provision for any devise which
561	is to be satisfied by reference to a specific property or type
562	of property, fund, sum, or statutory amount.  If the will
563	contains no devise which is to be satisfied by reference to a
564	specific property or type of property, fund, sum, or statutory
565	amount, "residuary devise" or "residue" means a devise of all
566	assets remaining after satisfying the obligations of the estate.
567	(32)  "Security" means a security as defined in s. 517.021.
568	(33)  "Security interest" means a security interest as
569	defined in s. 671.201.
570	(34)  "Trust" means an express trust, private or
571	charitable, with additions to it, wherever and however created.
572	It also includes a trust created or determined by a judgment or
573	decree under which the trust is to be administered in the manner
574	of an express trust. "Trust" excludes other constructive trusts,
575	and it excludes resulting trusts; conservatorships; custodial
576	arrangements pursuant to the Florida Uniform Transfers to Minors
577	Act; business trusts providing for certificates to be issued to
578	beneficiaries; common trust funds; land trusts under s. 689.05;
579	trusts created by the form of the account or by the deposit
580	agreement at a financial institution; voting trusts; security
581	arrangements; liquidation trusts; trusts for the primary purpose
582	of paying debts, dividends, interest, salaries, wages, profits,
583	pensions, or employee benefits of any kind; and any arrangement
584	under which a person is nominee or escrowee for another.
585	(35)  "Trustee" includes an original, additional,
586	surviving, or successor trustee, whether or not appointed or
587	confirmed by court.
588	(36)  "Will" means an instrument, including a codicil,
589	executed by a person in the manner prescribed by this code,
590	which disposes of the person's property on or after his or her
591	death and includes an instrument which merely appoints a
592	personal representative or revokes or revises another will.
593	Section 3.  Paragraph (b) of subsection (8) of section
594	121.091, Florida Statutes, is amended to read:
595	121.091  Benefits payable under the system.--Benefits may
596	not be paid under this section unless the member has terminated
597	employment as provided in s. 121.021(39)(a) or begun
598	participation in the Deferred Retirement Option Program as
599	provided in subsection (13), and a proper application has been
600	filed in the manner prescribed by the department. The department
601	may cancel an application for retirement benefits when the
602	member or beneficiary fails to timely provide the information
603	and documents required by this chapter and the department's
604	rules. The department shall adopt rules establishing procedures
605	for application for retirement benefits and for the cancellation
606	of such application when the required information or documents
607	are not received.
608	(8)  DESIGNATION OF BENEFICIARIES.--
609	(b)  A designated beneficiary of a retirement account for
610	whom there is a monetary interest may disclaim his or her
611	monetary interest as provided in chapter 739 s. 689.21, and in
612	accordance with division rules governing such disclaimers. Such
613	disclaimer must be filed within 24 months after the event that
614	created the interest, that is, the death of the member or
615	annuitant.
616	Section 4.  Subsection (1) of section 710.121, Florida
617	Statutes, is amended to read:
618	710.121  Renunciation, resignation, death, or removal of
619	custodian; designation of successor custodian.--
620	(1)  A person nominated under s. 710.104 or designated
621	under s. 710.111 as custodian may decline to serve by delivering
622	a valid disclaimer under chapter 739 s. 689.21 to the person who
623	made the nomination or to the transferor or the transferor's
624	legal representative. If the event giving rise to a transfer has
625	not occurred and no substitute custodian able, willing, and
626	eligible to serve was nominated under s. 710.104, the person who
627	made the nomination may nominate a substitute custodian under s.
628	710.104; otherwise, the transferor or the transferor's legal
629	representative shall designate a substitute custodian at the
630	time of the transfer, in either case from among the persons
631	eligible to serve as custodian for that kind of property under
632	s. 710.111(1). The custodian so designated has the rights of a
633	successor custodian.
634	Section 5.  Sections 689.21 and 732.801, Florida Statutes,
635	are repealed.
636	Section 6.  This act shall take effect July 1, 2005.

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