HB 1141

CS

CHAMBER ACTION

1	The Justice Council 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 conveyances of land; creating s.
7	689.072, F.S.; providing for the transfer and creation of
8	custodial property in an individual retirement account or
9	certain qualified plans; incorporating statutory
10	provisions into such transfer; providing powers to the
11	custodian or trustee of such custodial property; providing
12	protections for persons dealing with the custodian or
13	trustee; exempting certain transfers from specific claims;
14	providing for the disposition of custodial property held
15	in an account, plan or custodianship that is terminated;
16	providing a standard of care for the custodian or trustee;
17	providing for certain declarations to control in specific
18	legal proceedings; providing that provisions relating to
19	deeds under statute of uses are not applicable to a
20	transfer by a custodian or trustee under the act;
21	providing for liberal construction; creating s. 694.17,
22	F.S.; providing that certain recorded instruments
23	transferring certain interests in real property to a
24	custodian or trustee are ratified, confirmed, and
25	validated; specifying vesting of such interests in the
26	custodian or trustee; specifying nonapplication of
27	provisions relating to deeds under statute of uses;
28	providing an effective date.
29
30	Be It Enacted by the Legislature of the State of Florida:
31
32	Section 1.  Section 689.072, Florida Statutes, is created
33	to read:
34	689.072  Real estate interests transferred to or by a
35	custodian or trustee of an individual retirement account or
36	qualified plan.--
37	(1)(a)  A conveyance, deed, mortgage, lease assignment, or
38	other recorded instrument that transfers an interest in real
39	property in this state, including a leasehold or mortgagee
40	interest, to a person who is qualified to act as a custodian or
41	trustee for an individual retirement account under 26 U.S.C. s.
42	408(a)(2), as amended, in which instrument the transferee is
43	designated "custodian," "as custodian," "trustee," or "as
44	trustee" and the account owner or beneficiary of the
45	custodianship in the individual retirement account is named,
46	creates custodial property and transfers title to the custodian
47	or trustee when an interest in real property is recorded in the
48	name of the custodian or trustee, followed by the words "as
49	custodian or trustee for the benefit of (name of individual
50	retirement account owner or beneficiary) individual retirement
51	account."
52	(b)  This section also applies to a qualified stock bonus,
53	pension, or profit-sharing plan created under 26 U.S.C. s.
54	401(a), as amended, in which instrument a person is designated
55	"custodian," "as custodian," "trustee," or "as trustee" and the
56	plan, plan participant, or plan beneficiary of the custodianship
57	in the plan also creates custodial property and transfers title
58	to the custodian or trustee when an interest in real property is
59	recorded in the name of the custodian or trustee, followed by
60	the words "as custodian, or trustee of the (name of plan) for
61	the benefit of (name of plan participant or beneficiary)."
62	(2)  A transfer to a custodian or trustee of an individual
63	retirement account or qualified plan pursuant to this section
64	incorporates the provisions of this section into the disposition
65	and grants to the custodian or trustee the power to protect,
66	conserve, sell, lease, encumber, or otherwise manage and dispose
67	of the real property described in the recorded instrument
68	without joinder of the named individual retirement account
69	owner, plan participant, or beneficiary, except as provided in
70	subsection (5).
71	(3)  A person dealing with the custodian or trustee does
72	not have a duty to inquire as to the qualifications of the
73	custodian or trustee and may rely on the powers of the custodian
74	or trustee for the custodial property created under this section
75	regardless of whether such powers are specified in the recorded
76	instrument. A grantee, mortgagee, lessee, transferee, assignee,
77	or person obtaining a satisfaction or release or otherwise
78	dealing with the custodian or trustee regarding such custodial
79	property is not required to inquire into:
80	(a)  The identification or status of any named individual
81	retirement account owner, plan participant, or beneficiary of
82	the individual retirement account or qualified plan or his or
83	her heirs or assigns to whom a custodian or trustee may be
84	accountable under the terms of the individual retirement account
85	agreement or qualified plan document;
86	(b)  The authority of the custodian or trustee to act
87	within and exercise the powers granted under the individual
88	retirement account agreement or qualified plan document;
89	(c)  The adequacy or disposition or any consideration
90	provided to the custodian or trustee in connection with any
91	interest acquired from such custodian or trustee; or
92	(d)  Any provision of an individual retirement account
93	agreement or qualified plan document.
94	(4)  A person dealing with the custodian or trustee under
95	the recorded instrument takes any interest transferred by such
96	custodian or trustee, within the authority provided under this
97	section, free of claims of the named owner, plan participant, or
98	beneficiary of the individual retirement account or qualified
99	plan or of anyone claiming by, through, or under such owner,
100	plan participant, or beneficiary.
101	(5)  If notice of the revocation or termination of the
102	individual retirement account agreement, qualified plan, or
103	custodianship established under such individual retirement
104	account agreement or qualified plan is recorded, any disposition
105	or encumbrance of the custodial property must be by an
106	instrument executed by the custodian or trustee or the successor
107	and the respective owner, plan participant, or beneficiary of
108	the individual retirement account or qualified plan.
109	(6)  In dealing with custodial property created under this
110	section, a custodian or trustee shall observe the standard of
111	care of a prudent person dealing with property of another
112	person. This section does not relieve the custodian or trustee
113	from liability for breach of the individual retirement account
114	agreement, custodial agreement, or qualified plan document.
115	(7)  A provision of the recorded instrument that defines
116	and declares the interest of the owner, plan participant, or
117	beneficiary of the individual retirement account or qualified
118	plan to be personal property controls only if a determination
119	becomes an issue in any legal proceeding.
120	(8)  As used in this section, the term "beneficiary"
121	applies only when the individual retirement account owner or
122	qualified plan participant is deceased.
123	(9)(a)  This section does not apply to any deed, mortgage,
124	or instrument to which s. 689.071 applies.
125	(b)  Section 689.09 does not apply to transfers of real
126	property interests to a custodian or trustee under this section.
127	(10)  This section is remedial and shall be liberally
128	construed to effectively carry out its purposes.
129	Section 2.  Section 694.17, Florida Statutes, is created to
130	read:
131	694.17  Validation of conveyances to custodian or trustee
132	of an individual retirement account or qualified plan.--All
133	conveyances, deeds, mortgages, lease assignments, or other
134	recorded instruments transferring an interest in real property
135	in this state to a custodian or trustee, which were recorded
136	before July 1, 2006, but would be within the scope of s. 689.072
137	if recorded after July 1, 2006, are ratified, confirmed, and
138	validated in all respects and shall be deemed to have vested
139	such interest in the custodian or trustee without reversion or
140	impairment, as if such instruments had been recorded after July
141	1, 2006, and s. 689.09 shall not apply to any such instruments
142	regardless of when recorded.
143	Section 3.  This act shall take effect July 1, 2006.

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