HB 0667

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 assets held in benefit plans; amending
7	s. 222.22, F.S.; exempting from legal process in favor of
8	creditors or other claimants assets held in qualified
9	tuition programs, in certain health savings accounts and
10	medical savings accounts, in Coverdell education savings
11	accounts, or in hurricane savings accounts; providing a
12	definition; amending s. 710.102, F.S.; redefining the term
13	"benefit plan" and defining the term "qualified minor's
14	trust" as used in the Florida Uniform Transfers to Minors
15	Act; amending s. 710.104, F.S.; including benefit plans in
16	the types of property that a custodian may be named to
17	receive on behalf of a minor; amending s. 710.108, F.S.;
18	allowing a benefit plan to be transferred to a custodian
19	of a minor who does not have a conservator by an obligor
20	of the minor; raising a threshold above which certain
21	obligor transfers are prohibited; amending s. 710.116,
22	F.S.; allowing a minor's custodian, without court order,
23	to transfer custodial property to a qualified minor's
24	trust; providing implications of the transfer; amending s.
25	733.808, F.S.; providing for the disposition of benefits
26	under a benefit plan after the death of an owner of or
27	participant in the plan; amending s. 744.301, F.S.;
28	providing for the parents or natural guardians of a minor
29	child to collect, receive, manage, and dispose of and make
30	elections regarding the proceeds of an annuity contract
31	payable to a minor child or of a benefit plan of which the
32	minor is a beneficiary, participant, or owner, without
33	appointment, authority, or bond, if the proceeds equal
34	less than a specified maximum amount; providing an
35	effective date.
36
37	Be It Enacted by the Legislature of the State of Florida:
38
39	Section 1.  Section 222.22, Florida Statutes, is amended to
40	read:
41	222.22  Exemption of assets in qualified tuition programs,
42	medical savings accounts, Coverdell education savings accounts,
43	and hurricane savings accounts moneys in the Prepaid College
44	Trust Fund or in a Medical Savings Account from legal process.--
45	(1)(a)  Moneys paid into or out of, the assets of, and the
46	income of any validly existing qualified tuition program
47	authorized by s. 529 of the Internal Revenue Code of 1986, as
48	amended, including, but not limited to, the Florida Prepaid
49	College Trust Fund advance payment contracts under s. 1009.98
50	and Florida Prepaid College Trust Fund participation agreements
51	under s. 1009.981 the Florida Prepaid College Trust Fund by or
52	on behalf of a purchaser or qualified beneficiary pursuant to an
53	advance payment contract made under part IV of chapter 1009,
54	which contract has not been terminated, are not liable to
55	attachment, levy, garnishment, or legal process in the state in
56	favor of any creditor of or claimant against any program
57	participant, purchaser, owner or contributor, or program
58	beneficiary the purchaser or beneficiary of such advance payment
59	contract.
60	(2)(b)  Moneys paid into or out of, the assets of, and the
61	income of a health savings account or medical savings account
62	authorized under ss. 220 and 223 of the Internal Revenue Code of
63	1986, as amended, are not liable to attachment, levy,
64	garnishment, or legal process in this state in favor of any
65	creditor of or claimant against any account participant,
66	purchaser, owner or contributor, or account beneficiary.
67	(3)  Moneys paid into or out of, the assets of, and the
68	income of any Coverdell education savings account, also known as
69	an educational IRA, established or existing in accordance with
70	s. 530 of the Internal Revenue Code of 1986, as amended, are not
71	liable to attachment, levy, garnishment, or legal process in
72	this state in favor of any creditor of or claimant against any
73	account participant, purchaser, owner or contributor, or account
74	beneficiary.
75	(4)  Moneys paid into or out of, the assets of, and the
76	income of any hurricane savings account established by an
77	insurance policyholder for residential property in this state
78	equal to twice the deductible sum of such insurance to cover an
79	insurance deductible or other uninsured portion of the risks of
80	loss from a hurricane, rising flood waters, or other
81	catastrophic windstorm event are not liable to attachment, levy,
82	garnishment, or legal process in this state in favor of any
83	creditor of or claimant against any account participant,
84	purchaser, owner or contributor, or account beneficiary. As used
85	in this subsection, the term "hurricane savings account" means
86	an account established by the owner of residential real property
87	in this state who specifies that the purpose of the account is
88	to cover the amount of insurance deductibles and other uninsured
89	portions of the risks of loss from hurricanes, rising flood
90	waters, or other catastrophic windstorm events the Prepaid
91	College Trust Fund by or on behalf of a benefactor or designated
92	beneficiary pursuant to a participation agreement made under s.
93	1009.981, which agreement has not been terminated, are not
94	liable to attachment, garnishment, or legal process in the state
95	in favor of any creditor of the purchaser or beneficiary of such
96	participation agreement.
97	(2)  Moneys paid into or out of a Medical Savings Account
98	by or on behalf of a person depositing money into such account
99	or a qualified beneficiary are not liable to attachment,
100	garnishment, or legal process in the state in favor of any
101	creditor of such person or beneficiary of such Medical Savings
102	Account.
103	Section 2.  Section 710.102, Florida Statutes, is amended
104	to read:
105	710.102  Definitions.--As used in this act, the term:
106	(1)  "Adult" means an individual who has attained the age
107	of 21 years.
108	(2)  "Benefit plan" means a retirement plan and may
109	include, but is not limited to, any pension, profit-sharing,
110	stock-bonus, or stock-ownership plan or individual retirement
111	account an employer's plan for the benefit of an employee or
112	partner.
113	(3)  "Broker" means a person lawfully engaged in the
114	business of effecting transactions in securities or commodities
115	for the person's own account or for the account of others.
116	(4)  "Conservator" means a person appointed or qualified by
117	a court to act as general, limited, or temporary guardian of a
118	minor's property or a person legally authorized to perform
119	substantially the same functions.
120	(5)  "Court" means the circuit court.
121	(6)  "Custodial property" means any interest in property
122	transferred to a custodian under this act and the income from
123	and proceeds of that interest in property.
124	(7)  "Custodian" means a person so designated under s.
125	710.111 or a successor or substitute custodian designated under
126	s. 710.121.
127	(8)  "Financial institution" means a bank, trust company,
128	savings institution, or credit union, chartered and supervised
129	under state or federal law.
130	(9)  "Legal representative" means an individual's personal
131	representative or conservator.
132	(10)  "Member of the minor's family" means the minor's
133	parent, stepparent, spouse, grandparent, brother, sister, uncle,
134	or aunt, whether of the whole or half blood or by adoption.
135	(11)  "Minor" means an individual who has not attained the
136	age of 21 years.
137	(12)  "Person" means an individual, corporation,
138	organization, or other legal entity.
139	(13)  "Personal representative" means an executor,
140	administrator, successor personal representative, or special
141	administrator of a decedent's estate or a person legally
142	authorized to perform substantially the same functions.
143	(14)  "Qualified minor's trust" means a trust that meets
144	the requirements of s. 2503(c) of the Internal Revenue Code of
145	1986, as amended.
146	(15)(14)  "State" includes any state of the United States,
147	the District of Columbia, the Commonwealth of Puerto Rico, and
148	any territory or possession subject to the legislative authority
149	of the United States.
150	(16)(15)  "Transfer" means a transaction that creates
151	custodial property under s. 710.111.
152	(17)(16)  "Transferor" means a person who makes a transfer
153	under this act.
154	(18)(17)  "Trust company" means a financial institution,
155	corporation, or other legal entity, authorized to exercise
156	general trust powers.
157	Section 3.  Subsection (1) of section 710.104, Florida
158	Statutes, is amended to read:
159	710.104  Nomination of custodian.--
160	(1)  A person having the right to designate the recipient
161	of property transferable upon the occurrence of a future event
162	may revocably nominate a custodian to receive the property for a
163	minor beneficiary upon the occurrence of the event by naming the
164	custodian followed in substance by the words: "as custodian for
165	(name of minor)   under the Florida Uniform Transfers to Minors
166	Act." The nomination may name one or more persons as substitute
167	custodians to whom the property must be transferred, in the
168	order named, if the first nominated custodian dies before the
169	transfer or is unable, declines, or is ineligible to serve. The
170	nomination may be made in a will, a trust, a deed, an instrument
171	exercising a power of appointment, or in a writing designating a
172	beneficiary of contractual rights, including, but not limited
173	to, the right to a benefit plan, which is registered with or
174	delivered to the payor, issuer, or other obligor of the
175	contractual rights.
176	Section 4.  Section 710.108, Florida Statutes, is amended
177	to read:
178	710.108  Transfer by obligor.--
179	(1)  Subject to subsections (2) and (3), a person not
180	subject to s. 710.106 or s. 710.107 who holds property,
181	including, but not limited to, a benefit plan, of a minor not
182	having a conservator, or who owes a liquidated debt to, a minor
183	not having a conservator may make an irrevocable transfer to a
184	custodian for the benefit of the minor pursuant to s. 710.111.
185	(2)  If a person having the right to do so under s. 710.104
186	has nominated a custodian under that section to receive the
187	custodial property, the transfer must be made to that person.
188	(3)  If no custodian has been nominated under s. 710.104,
189	or all persons so nominated as custodian die before the transfer
190	or are unable, decline, or are ineligible to serve, a transfer
191	under this section may be made to an adult member of the minor's
192	family or to a trust company unless the property exceeds $15,000
193	$10,000 in value.
194	Section 5.  Section 710.116, Florida Statutes, is amended
195	to read:
196	710.116  Use of custodial property.--
197	(1)  A custodian may deliver or pay to the minor or expend
198	for the minor's benefit so much of the custodial property as the
199	custodian considers advisable for the use and benefit of the
200	minor, without court order and without regard to the duty or
201	ability of the custodian personally or of any other person to
202	support the minor, or to any other income or property of the
203	minor which may be applicable or available for that purpose.
204	(2)  A custodian may, without court order, transfer all or
205	part of the custodial property to a qualified minor's trust. A
206	transfer of property pursuant to this subsection terminates the
207	custodianship to the extent of the property transferred.
208	(3)(2)  On petition of an interested person or the minor if
209	the minor has attained the age of 14 years, the court may order
210	the custodian to deliver or pay to the minor or expend for the
211	minor's benefit so much of the custodial property as the court
212	considers advisable for the use and benefit of the minor.
213	(4)(3)  A delivery, payment, or expenditure under this
214	section is in addition to, not in substitution for, and does not
215	affect any obligation of a person to support the minor.
216	Section 6.  Section 733.808, Florida Statutes, is amended
217	to read:
218	733.808  Death benefits; disposition of proceeds.--
219	(1)  Death benefits of any kind, including, but not limited
220	to, proceeds of:
221	(a)  An individual life insurance policy;
222	(b)  A group life insurance policy;
223	(c)  A benefit plan as defined by s. 710.102 An employees'
224	trust or under a contract purchased by an employees' trust
225	forming part of a pension, stock bonus, or profit-sharing plan;
226	(d)  An annuity or endowment contract; and
227	(e)  A health or and accident policy,
228
229	may be made payable to the trustee under a trust agreement or
230	declaration of trust in existence at the time of the death of
231	the insured, employee, or annuitant or the owner of or
232	participant in the benefit plan. The death benefits shall be
233	held and disposed of by the trustee in accordance with the terms
234	of the trust as they appear in writing on the date of the death
235	of the insured, employee, or annuitant, owner, or participant.
236	It shall not be necessary to the validity of the trust agreement
237	or declaration of trust, whether revocable or irrevocable, that
238	it have a trust corpus other than the right of the trustee to
239	receive death benefits.
240	(2)  Death benefits of any kind, including, but not limited
241	to, proceeds of:
242	(a)  An individual life insurance policy;
243	(b)  A group life insurance policy;
244	(c)  A benefit plan as defined by s. 710.102 An employees'
245	trust, or under a contract purchased by an employees' trust,
246	forming part of a pension, stock bonus, or profit-sharing plan;
247	(d)  An annuity or endowment contract; and
248	(e)  A health or and accident policy,
249
250	may be made payable to the trustee named, or to be named, in a
251	written instrument that is admitted to probate as the last will
252	of the insured, the owner of the policy, the employee, owner, or
253	participant covered by the plan or contract, or any other
254	person, whether or not the will is in existence at the time of
255	designation. Upon the admission of the will to probate, the
256	death benefits shall be paid to the trustee, to be held,
257	administered, and disposed of in accordance with the terms of
258	the trust or trusts created by the will.
259	(3)  In the event no trustee makes proper claim to the
260	proceeds from the insurance company or other obligor within a
261	period of 6 months after the date of the death of the insured,
262	employee, or annuitant, owner, or participant, or if
263	satisfactory evidence is furnished to the insurance company or
264	obligor within that period that there is, or will be, no trustee
265	to receive the proceeds, payment shall be made by the insurance
266	company or obligor to the personal representative of the person
267	making the designation, unless otherwise provided by agreement
268	with the insurer or obligor during the lifetime of the insured,
269	employee, or annuitant, owner, or participant.
270	(4)  Death benefits payable as provided in subsection (1),
271	subsection (2), or subsection (3), unless paid to a personal
272	representative under the provisions of subsection (3), shall not
273	be deemed to be part of the decedent's estate, and shall not be
274	subject to any obligation to pay the expenses of the
275	administration and obligations of the decedent's estate or for
276	contribution required from a trust under s. 733.607(2) to any
277	greater extent than if the proceeds were payable directly to the
278	beneficiaries named in the trust.
279	(5)  The death benefits held in trust may be commingled
280	with any other assets that may properly come into the trust.
281	(6)  Nothing in This section does not shall affect the
282	validity of any designation of a beneficiary of proceeds
283	previously made that designates as beneficiary the trustee of
284	any trust established under a trust agreement or declaration of
285	trust or by will.
286	Section 7.  Subsection (2) of section 744.301, Florida
287	Statutes, is amended to read:
288	744.301  Natural guardians.--
289	(2)  The natural guardian or guardians are authorized, on
290	behalf of any of their minor children, to:
291	(a)  Settle and consummate a settlement of any claim or
292	cause of action accruing to any of their minor children for
293	damages to the person or property of any of said minor children;
294	(b)  and to Collect, receive, manage, and dispose of the
295	proceeds of any such settlement;
296	(c)  Collect, receive, manage, and dispose and of any other
297	real or personal property distributed from an estate or trust;
298	(d)  Collect, receive, manage, and dispose of and make
299	elections regarding the or proceeds from a life insurance policy
300	or annuity contract payable to, or otherwise accruing to the
301	benefit of, the child; and
302	(e)  Collect, receive, manage, dispose of, and make
303	elections regarding the proceeds of any benefit plan as defined
304	by s. 710.102, of which the minor is a beneficiary, participant,
305	or owner,
306
307	without appointment, authority, or bond during minority, when
308	the amount involved in any instance does not exceed $15,000,
309	without appointment, authority, or bond.
310	Section 8.  This act shall take effect upon becoming a law.

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