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 |
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33 | Be It Enacted by the Legislature of the State of Florida: |
34 |
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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 |
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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 |
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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 |
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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. |