HB 0667

1	A bill to be entitled
2	An act relating to assets held in benefit plans; amending
3	s. 222.22, F.S.; exempting from legal process in favor of
4	creditors or other claimants assets held in qualified
5	tuition programs, in certain health savings accounts and
6	medical savings accounts, in Coverdell education savings
7	accounts, or in hurricane savings accounts; amending s.
8	710.102, F.S.; redefining the term "benefit plan" and
9	defining the term "qualified minor's trust" as used in the
10	Florida Uniform Transfers to Minors Act; amending s.
11	710.104, F.S.; including benefit plans in the types of
12	property that a custodian may be named to receive on
13	behalf of a minor; amending s. 710.108, F.S.; allowing a
14	benefit plan to be transferred to a custodian of a minor
15	who does not have a conservator by an obligor of the
16	minor; raising a threshold above which certain obligor
17	transfers are prohibited; amending s. 710.116, F.S.;
18	allowing a minor's custodian, without court order, to
19	transfer custodial property to a qualified minor's trust;
20	providing implications of the transfer; amending s.
21	733.808, F.S.; providing for the disposition of benefits
22	under a benefit plan after the death of an owner of or
23	participant in the plan; amending s. 744.301, F.S.;
24	providing for the parents or natural guardians of a minor
25	child to collect, receive, manage, and dispose of and make
26	elections regarding the proceeds of an annuity contract
27	payable to a minor child or of a benefit plan of which the
28	minor is a beneficiary, participant, or owner, without
29	appointment, authority, or bond, if the proceeds equal
30	less than a specified maximum amount; providing an
31	effective date.
32
33	Be It Enacted by the Legislature of the State of Florida:
34
35	Section 1.  Section 222.22, Florida Statutes, is amended to
36	read:
37	222.22  Exemption of assets in qualified tuition programs,
38	medical savings accounts, Coverdell education savings accounts,
39	and hurricane savings accounts moneys in the Prepaid College
40	Trust Fund or in a Medical Savings Account from legal process.--
41	(1)(a)  Moneys paid into or out of, the assets of, and the
42	income of any validly existing qualified tuition program
43	authorized by s. 529 of the Internal Revenue Code of 1986, as
44	amended, including, but not limited to, the Florida Prepaid
45	College Trust Fund advance payment contracts under s. 1009.98
46	and Florida Prepaid College Trust Fund participation agreements
47	under s. 1009.981 the Florida Prepaid College Trust Fund by or
48	on behalf of a purchaser or qualified beneficiary pursuant to an
49	advance payment contract made under part IV of chapter 1009,
50	which contract has not been terminated, are not liable to
51	attachment, levy, garnishment, or legal process in the state in
52	favor of any creditor of or claimant against any program
53	participant, purchaser, owner or contributor, or program
54	beneficiary the purchaser or beneficiary of such advance payment
55	contract.
56	(2)(b)  Moneys paid into or out of, the assets of, and the
57	income of a health savings account or medical savings account
58	authorized under ss. 220 and 223 of the Internal Revenue Code of
59	1986, as amended, are not liable to attachment, levy,
60	garnishment, or legal process in this state in favor of any
61	creditor of or claimant against any account participant,
62	purchaser, owner or contributor, or account beneficiary.
63	(3)  Moneys paid into or out of, the assets of, and the
64	income of any Coverdell education savings account, also known as
65	an educational IRA, established or existing in accordance with
66	s. 530 of the Internal Revenue Code of 1986, as amended, are not
67	liable to attachment, levy, garnishment, or legal process in
68	this state in favor of any creditor of or claimant against any
69	account participant, purchaser, owner or contributor, or account
70	beneficiary.
71	(4)  Moneys paid into or out of, the assets of, and the
72	income of any hurricane savings account to cover an insurance
73	deductible or other uninsured portions of the risks of loss from
74	a hurricane, rising flood waters, or other catastrophic
75	windstorm events are not liable to attachment, levy,
76	garnishment, or legal process in this state in favor of any
77	creditor of or claimant against any account participant,
78	purchaser, owner or contributor, or account beneficiary. The
79	term "hurricane savings account" means an account established by
80	an insurance policyholder for residential property in this state
81	who is the owner of such property and who identifies the account
82	for the purpose of covering insurance deductible amounts and
83	other uninsured portions of risks from hurricanes, rising flood
84	waters, or other catastrophic windstorm events the Prepaid
85	College Trust Fund by or on behalf of a benefactor or designated
86	beneficiary pursuant to a participation agreement made under s.
87	1009.981, which agreement has not been terminated, are not
88	liable to attachment, garnishment, or legal process in the state
89	in favor of any creditor of the purchaser or beneficiary of such
90	participation agreement.
91	(2)  Moneys paid into or out of a Medical Savings Account
92	by or on behalf of a person depositing money into such account
93	or a qualified beneficiary are not liable to attachment,
94	garnishment, or legal process in the state in favor of any
95	creditor of such person or beneficiary of such Medical Savings
96	Account.
97	Section 2.  Section 710.102, Florida Statutes, is amended
98	to read:
99	710.102  Definitions.--As used in this act, the term:
100	(1)  "Adult" means an individual who has attained the age
101	of 21 years.
102	(2)  "Benefit plan" means a retirement plan and may
103	include, but is not limited to, any pension, profit-sharing,
104	stock-bonus, or stock-ownership plan or individual retirement
105	account an employer's plan for the benefit of an employee or
106	partner.
107	(3)  "Broker" means a person lawfully engaged in the
108	business of effecting transactions in securities or commodities
109	for the person's own account or for the account of others.
110	(4)  "Conservator" means a person appointed or qualified by
111	a court to act as general, limited, or temporary guardian of a
112	minor's property or a person legally authorized to perform
113	substantially the same functions.
114	(5)  "Court" means the circuit court.
115	(6)  "Custodial property" means any interest in property
116	transferred to a custodian under this act and the income from
117	and proceeds of that interest in property.
118	(7)  "Custodian" means a person so designated under s.
119	710.111 or a successor or substitute custodian designated under
120	s. 710.121.
121	(8)  "Financial institution" means a bank, trust company,
122	savings institution, or credit union, chartered and supervised
123	under state or federal law.
124	(9)  "Legal representative" means an individual's personal
125	representative or conservator.
126	(10)  "Member of the minor's family" means the minor's
127	parent, stepparent, spouse, grandparent, brother, sister, uncle,
128	or aunt, whether of the whole or half blood or by adoption.
129	(11)  "Minor" means an individual who has not attained the
130	age of 21 years.
131	(12)  "Person" means an individual, corporation,
132	organization, or other legal entity.
133	(13)  "Personal representative" means an executor,
134	administrator, successor personal representative, or special
135	administrator of a decedent's estate or a person legally
136	authorized to perform substantially the same functions.
137	(14)  "Qualified minor's trust" means a trust that meets
138	the requirements of s. 2503(c) of the Internal Revenue Code of
139	1986, as amended.
140	(15)(14)  "State" includes any state of the United States,
141	the District of Columbia, the Commonwealth of Puerto Rico, and
142	any territory or possession subject to the legislative authority
143	of the United States.
144	(16)(15)  "Transfer" means a transaction that creates
145	custodial property under s. 710.111.
146	(17)(16)  "Transferor" means a person who makes a transfer
147	under this act.
148	(18)(17)  "Trust company" means a financial institution,
149	corporation, or other legal entity, authorized to exercise
150	general trust powers.
151	Section 3.  Subsection (1) of section 710.104, Florida
152	Statutes, is amended to read:
153	710.104  Nomination of custodian.--
154	(1)  A person having the right to designate the recipient
155	of property transferable upon the occurrence of a future event
156	may revocably nominate a custodian to receive the property for a
157	minor beneficiary upon the occurrence of the event by naming the
158	custodian followed in substance by the words: "as custodian for
159	(name of minor)   under the Florida Uniform Transfers to
160	Minors Act." The nomination may name one or more persons as
161	substitute custodians to whom the property must be transferred,
162	in the order named, if the first nominated custodian dies before
163	the transfer or is unable, declines, or is ineligible to serve.
164	The nomination may be made in a will, a trust, a deed, an
165	instrument exercising a power of appointment, or in a writing
166	designating a beneficiary of contractual rights, including, but
167	not limited to, the right to a benefit plan, which is registered
168	with or delivered to the payor, issuer, or other obligor of the
169	contractual rights.
170	Section 4.  Section 710.108, Florida Statutes, is amended
171	to read:
172	710.108  Transfer by obligor.--
173	(1)  Subject to subsections (2) and (3), a person not
174	subject to s. 710.106 or s. 710.107 who holds property,
175	including, but not limited to, a benefit plan, of a minor not
176	having a conservator, or who owes a liquidated debt to, a minor
177	not having a conservator may make an irrevocable transfer to a
178	custodian for the benefit of the minor pursuant to s. 710.111.
179	(2)  If a person having the right to do so under s. 710.104
180	has nominated a custodian under that section to receive the
181	custodial property, the transfer must be made to that person.
182	(3)  If no custodian has been nominated under s. 710.104,
183	or all persons so nominated as custodian die before the transfer
184	or are unable, decline, or are ineligible to serve, a transfer
185	under this section may be made to an adult member of the minor's
186	family or to a trust company unless the property exceeds $15,000
187	$10,000 in value.
188	Section 5.  Section 710.116, Florida Statutes, is amended
189	to read:
190	710.116  Use of custodial property.--
191	(1)  A custodian may deliver or pay to the minor or expend
192	for the minor's benefit so much of the custodial property as the
193	custodian considers advisable for the use and benefit of the
194	minor, without court order and without regard to the duty or
195	ability of the custodian personally or of any other person to
196	support the minor, or to any other income or property of the
197	minor which may be applicable or available for that purpose.
198	(2)  A custodian may, without court order, transfer all or
199	part of the custodial property to a qualified minor's trust. A
200	transfer of property pursuant to this subsection terminates the
201	custodianship to the extent of the property transferred.
202	(3)(2)  On petition of an interested person or the minor if
203	the minor has attained the age of 14 years, the court may order
204	the custodian to deliver or pay to the minor or expend for the
205	minor's benefit so much of the custodial property as the court
206	considers advisable for the use and benefit of the minor.
207	(4)(3)  A delivery, payment, or expenditure under this
208	section is in addition to, not in substitution for, and does not
209	affect any obligation of a person to support the minor.
210	Section 6.  Section 733.808, Florida Statutes, is amended
211	to read:
212	733.808  Death benefits; disposition of proceeds.--
213	(1)  Death benefits of any kind, including, but not limited
214	to, proceeds of:
215	(a)  An individual life insurance policy;
216	(b)  A group life insurance policy;
217	(c)  A benefit plan as defined by s. 710.102 An employees'
218	trust or under a contract purchased by an employees' trust
219	forming part of a pension, stock bonus, or profit-sharing plan;
220	(d)  An annuity or endowment contract; and
221	(e)  A health or and accident policy,
222
223	may be made payable to the trustee under a trust agreement or
224	declaration of trust in existence at the time of the death of
225	the insured, employee, or annuitant or the owner of or
226	participant in the benefit plan. The death benefits shall be
227	held and disposed of by the trustee in accordance with the terms
228	of the trust as they appear in writing on the date of the death
229	of the insured, employee, or annuitant, owner, or participant.
230	It shall not be necessary to the validity of the trust agreement
231	or declaration of trust, whether revocable or irrevocable, that
232	it have a trust corpus other than the right of the trustee to
233	receive death benefits.
234	(2)  Death benefits of any kind, including, but not limited
235	to, proceeds of:
236	(a)  An individual life insurance policy;
237	(b)  A group life insurance policy;
238	(c)  A benefit plan as defined by s. 710.102 An employees'
239	trust, or under a contract purchased by an employees' trust,
240	forming part of a pension, stock bonus, or profit-sharing plan;
241	(d)  An annuity or endowment contract; and
242	(e)  A health or and accident policy,
243
244	may be made payable to the trustee named, or to be named, in a
245	written instrument that is admitted to probate as the last will
246	of the insured, the owner of the policy, the employee, owner, or
247	participant covered by the plan or contract, or any other
248	person, whether or not the will is in existence at the time of
249	designation. Upon the admission of the will to probate, the
250	death benefits shall be paid to the trustee, to be held,
251	administered, and disposed of in accordance with the terms of
252	the trust or trusts created by the will.
253	(3)  In the event no trustee makes proper claim to the
254	proceeds from the insurance company or other obligor within a
255	period of 6 months after the date of the death of the insured,
256	employee, or annuitant, owner, or participant, or if
257	satisfactory evidence is furnished to the insurance company or
258	obligor within that period that there is, or will be, no trustee
259	to receive the proceeds, payment shall be made by the insurance
260	company or obligor to the personal representative of the person
261	making the designation, unless otherwise provided by agreement
262	with the insurer or obligor during the lifetime of the insured,
263	employee, or annuitant, owner, or participant.
264	(4)  Death benefits payable as provided in subsection (1),
265	subsection (2), or subsection (3), unless paid to a personal
266	representative under the provisions of subsection (3), shall not
267	be deemed to be part of the decedent's estate, and shall not be
268	subject to any obligation to pay the expenses of the
269	administration and obligations of the decedent's estate or for
270	contribution required from a trust under s. 733.607(2) to any
271	greater extent than if the proceeds were payable directly to the
272	beneficiaries named in the trust.
273	(5)  The death benefits held in trust may be commingled
274	with any other assets that may properly come into the trust.
275	(6)  Nothing in This section does not shall affect the
276	validity of any designation of a beneficiary of proceeds
277	previously made that designates as beneficiary the trustee of
278	any trust established under a trust agreement or declaration of
279	trust or by will.
280	Section 7.  Subsection (2) of section 744.301, Florida
281	Statutes, is amended to read:
282	744.301  Natural guardians.--
283	(2)  The natural guardian or guardians are authorized, on
284	behalf of any of their minor children, to:
285	(a)  Settle and consummate a settlement of any claim or
286	cause of action accruing to any of their minor children for
287	damages to the person or property of any of said minor children;
288	(b)  and to Collect, receive, manage, and dispose of the
289	proceeds of any such settlement;
290	(c)  Collect, receive, manage, and dispose and of any other
291	real or personal property distributed from an estate or trust;
292	(d)  Collect, receive, manage, and dispose of and make
293	elections regarding the or proceeds from a life insurance policy
294	or annuity contract payable to, or otherwise accruing to the
295	benefit of, the child; and
296	(e)  Collect, receive, manage, dispose of, and make
297	elections regarding the proceeds of any benefit plan as defined
298	by s. 710.102, of which the minor is a beneficiary, participant,
299	or owner,
300
301	without appointment, authority, or bond during minority, when
302	the amount involved in any instance does not exceed $15,000,
303	without appointment, authority, or bond.
304	Section 8.  This act shall take effect upon becoming a law.

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