HB 1141

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

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