HB 1141

1
A bill to be entitled
2An act relating to conveyances of land; creating s.
3689.072, F.S.; providing for the transfer and creation of
4custodial property in an individual retirement account or
5certain qualified plans; incorporating statutory
6provisions into such transfer; providing powers to the
7custodian or trustee of such custodial property; providing
8protections for persons dealing with the custodian or
9trustee; exempting certain transfers from specific claims;
10providing for the disposition of custodial property held
11in an account, plan or custodianship that is terminated;
12providing a standard of care for the custodian or trustee;
13providing for certain declarations to control in specific
14legal proceedings; providing that provisions relating to
15deeds under statute of uses are not applicable to a
16transfer by a custodian or trustee under the act;
17providing for liberal construction; providing an effective
18date.
19
20Be It Enacted by the Legislature of the State of Florida:
21
22     Section 1.  Section 689.072, Florida Statutes, is created
23to read:
24     689.072  Real estate interests transferred to or by a
25custodian or trustee of an individual retirement account or
26qualified plan.--
27     (1)(a)  A conveyance, deed, mortgage, lease assignment, or
28other recorded instrument that transfers an interest in real
29property in this state, including a leasehold or mortgagee
30interest, to a person who is qualified to act as a custodian or
31trustee for an individual retirement account under 26 U.S.C. s.
32408(a)(2), as amended, in which instrument the transferee is
33designated "custodian," "as custodian," "trustee," or "as
34trustee" and the account owner or beneficiary of the
35custodianship in the individual retirement account is named,
36creates custodial property and transfers title to the custodian
37or trustee when an interest in real property is recorded in the
38name of the custodian or trustee, followed by the words "as
39custodian or trustee for the benefit of (name of individual
40retirement account owner or beneficiary) individual retirement
41account."
42     (b)  This section also applies to a qualified stock bonus,
43pension, or profit-sharing plan created under 26 U.S.C. s.
44401(a), as amended, in which instrument a person is designated
45"custodian," "as custodian," "trustee," or "as trustee" and the
46plan, plan participant, or plan beneficiary of the custodianship
47in the plan also creates custodial property and transfers title
48to the custodian or trustee when an interest in real property is
49recorded in the name of the custodian or trustee, followed by
50the words "as custodian, or trustee of the (name of plan) for
51the benefit of (name of plan participant or beneficiary)."
52     (2)  A transfer to a custodian or trustee of an individual
53retirement account or qualified plan pursuant to this section
54the incorporates the provisions of this section into the
55disposition and grants to the custodian or trustee the power to
56protect, conserve, sell, lease, encumber, or otherwise manage
57and dispose of the real property described in the recorded
58instrument without joinder of the named individual retirement
59account owner, plan participant, or beneficiary, except as
60provided in subsection (5).
61     (3)  A person dealing with the custodian or trustee does
62not have a duty to inquire as to the qualifications of the
63custodian or trustee and may rely on the powers of the custodian
64or trustee for the custodial property created under this section
65regardless of whether such powers are specified in the recorded
66instrument. A grantee, mortgagee, lessee, transferee, assignee,
67or person obtaining a satisfaction or release or otherwise
68dealing with the custodian or trustee regarding such custodial
69property is not required to inquire into:
70     (a)  The identification or status of any named individual
71retirement account owner, plan participant, or beneficiary of
72the individual retirement account or qualified plan or his or
73her heirs or assigns to whom a custodian or trustee may be
74accountable under the terms of the individual retirement account
75agreement or qualified plan document;
76     (b)  The authority of the custodian or trustee to act
77within and exercise the powers granted under the individual
78retirement account agreement or qualified plan document;
79     (c)  The adequacy or disposition or any consideration
80provided to the custodian or trustee in connection with any
81interest acquired from such custodian or trustee; or
82     (d)  Any provision of an individual retirement account
83agreement or qualified plan document.
84     (4)  A person dealing with the custodian or trustee under
85the recorded instrument takes any interest transferred by such
86custodian or trustee, within the authority provided under this
87section, free of claims of the named owner, plan participant, or
88beneficiary of the individual retirement account or qualified
89plan or of anyone claiming by, through, or under such owner,
90plan participant, or beneficiary.
91     (5)  If notice of the revocation or termination of the
92individual retirement account agreement, qualified plan, or
93custodianship established under such individual retirement
94account agreement or qualified plan is recorded, any disposition
95or encumbrance of the custodial property must be by an
96instrument executed by the custodian or trustee or the successor
97and the respective owner, plan participant, or beneficiary of
98the individual retirement account or qualified plan.
99     (6)  In dealing with custodial property created under this
100section, a custodian or trustee shall observe the standard of
101care of a prudent person dealing with property of another
102person. This section does not relieve the custodian or trustee
103from liability for breach of the individual retirement account
104agreement, custodial agreement, or qualified plan document.
105     (7)  A provision of the recorded instrument that defines
106and declares the interest of the owner, plan participant, or
107beneficiary of the individual retirement account or qualified
108plan to be personal property controls only if a determination
109becomes an issue in any legal proceeding.
110     (8)  As used in this section, the term "beneficiary"
111applies only when the individual retirement account owner or
112qualified plan participant is deceased.
113     (9)(a)  This section does not apply to any deed, mortgage,
114or instrument to which s. 689.071 applies.
115     (b)  Section 689.09 does not apply to transfers of real
116property interests to a custodian or trustee under this section.
117     (10)  This section is remedial and shall be liberally
118construed to effectively carry out its purposes.
119     Section 2.  This act shall take effect July 1, 2006.


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