HB 425

1	A bill to be entitled
2	An act relating to the Florida Trust Code; creating parts
3	I, II, III, IV, V, VI, VII, VIII, IX, X, XI, XII, and XIII
4	of chapter 736, F.S.; providing a short title; providing
5	general provisions and definitions; providing for judicial
6	proceedings; providing for representations; providing for
7	creation, validity, modification, and termination of
8	trusts; providing for creditors' claims; providing for
9	spendthrift, discretionary, and revocable trusts;
10	providing for the office of trustee; providing for powers
11	and duties of the trustee; providing for trust
12	investments; providing for liability of trustee and rights
13	of persons dealing with trustee; providing for rules of
14	construction; providing for charitable trusts; providing
15	miscellaneous provisions; creating s. 689.175, F.S.;
16	abolishing the worthier title doctrine; providing
17	construction of certain instrument language; amending s.
18	731.103, F.S.; correcting a cross-reference; providing
19	construction relating to establishment of death by certain
20	evidence under certain circumstances; creating s.
21	731.1035, F.S.; providing for application of rules of
22	evidence in civil actions to certain proceedings; amending
23	s. 731.201, F.S.; revising definitions; conforming terms
24	and correcting cross-references; amending s. 731.303,
25	F.S.; specifying nonapplication of certain orders relating
26	to powers of revocation and powers of appointment;
27	revising provisions relating to representation by a holder
28	of a power of appointment; amending s. 732.513, F.S.;
29	deleting a ground protecting a devise's validity; amending
30	s. 732.603, F.S.; revising provisions relating to
31	antilapse, deceased devisees, and class gifts; amending s.
32	744.331, F.S.; revising provisions relating to orders
33	determining incapacity; amending s. 744.441, F.S.;
34	revising authority of certain guardians to prosecute or
35	defend claims or proceedings for certain purposes;
36	specifying duties of a court; creating s. 744.462, F.S.;
37	providing requirements for judicial determinations
38	relating to alternatives to guardianship; providing duties
39	of a court; amending ss. 497.458, 607.0802, 617.0802,
40	660.25, 660.46, 660.418, 689.071, 689.075, 709.08, 721.08,
41	721.53, 732.2075, 732.604, 732.611, 733.212, 733.602,
42	733.805, 733.817, 738.104, 738.1041, 738.202, 739.102, and
43	744.361, F.S., to conform terms and correct cross-
44	references; repealing ss. 737.101, 737.105, 737.106,
45	737.111, 737.115, and 737.116, constituting part I of ch.
46	737, F.S., relating to trust registration; repealing ss.
47	737.201, 737.202, 737.203, 737.2035, 737.204, 737.2041,
48	737.205, 737.206, 737.2065, 737.207, 737.208, and 737.209,
49	constituting part II of ch. 737, F.S., relating to
50	jurisdiction of courts; repealing ss. 737.301, 737.302,
51	737.303, 737.3035, 737.304, 737.305, 737.3053, 737.3054,
52	737.3055, 737.306, 737.3061, 737.307, 737.308, and
53	737.309, constituting part III of ch. 737, F.S., relating
54	to duties and liabilities of trustees; repealing ss.
55	737.401, 737.402, 737.4025, 737.403, 737.4031, 737.4032,
56	737.4033, 737.404, 737.405, and 737.406, constituting part
57	IV of ch. 737, F.S., relating to powers of trustees;
58	repealing ss. 737.501, 737.502, 737.503, 737.504, 737.505,
59	737.506, 737.507, 737.508, 737.509, 737.510, 737.511, and
60	737.512, constituting part V of ch. 737, F.S., relating to
61	charitable trusts; repealing ss. 737.6035, 737.621,
62	737.622, 737.623, 737.624, 737.625, 737.626, and 737.627,
63	consisting of part VI of ch. 737, F.S., relating to rules
64	of construction of trust administration; providing an
65	effective date.
66
67	Be It Enacted by the Legislature of the State of Florida:
68
69	Section 1.  Part I of chapter 736, Florida Statutes,
70	consisting of sections 736.0101, 736.0102, 736.0103, 736.0104,
71	736.0105, 736.0106, 736.0107, 736.0108, 736.0109, 736.0110,
72	736.0111, and 736.0112, is created to read:
73
74	PART I
75	GENERAL PROVISIONS AND DEFINITIONS
76
77	736.0101  Short title.--This chapter may be cited as the
78	"Florida Trust Code" and for purposes of this chapter is
79	referred to as the "code."
80	736.0102  Scope.--This code applies to express trusts,
81	charitable or noncharitable, and trusts created pursuant to a
82	law, judgment, or decree that requires the trust to be
83	administered in the manner of an express trust. This code does
84	not apply to constructive or resulting trusts; conservatorships;
85	custodial arrangements pursuant to the Florida Uniform Transfers
86	to Minors Act; business trusts providing for certificates to be
87	issued to beneficiaries; common trust funds; land trusts under
88	s. 689.05; trusts created by the form of the account or by the
89	deposit agreement at a financial institution; voting trusts;
90	security arrangements; liquidation trusts; trusts for the
91	primary purpose of paying debts, dividends, interest, salaries,
92	wages, profits, pensions, or employee benefits of any kind; and
93	any arrangement under which a person is nominee or escrowee for
94	another.
95	736.0103  Definitions.--Unless the context otherwise
96	requires, in this code:
97	(1)  "Action," with respect to an act of a trustee,
98	includes a failure to act.
99	(2)  "Ascertainable standard" means a standard relating to
100	an individual's health, education, support, or maintenance
101	within the meaning of s. 2041(b)(1)(A) or s. 2514(c)(1) of the
102	Internal Revenue Code of 1986, as amended.
103	(3)  "Beneficiary" means a person who:
104	(a)  Has a present or future beneficial interest in a
105	trust, vested or contingent; or
106	(b)  Holds a power of appointment over trust property in a
107	capacity other than that of trustee.
108	(4)  "Charitable trust" means a trust, or portion of a
109	trust, created for a charitable purpose as described in s.
110	736.0405(1).
111	(5)  "Environmental law" means a federal, state, or local
112	law, rule, regulation, or ordinance that relates to protection
113	of the environment or human health.
114	(6)  "General power of appointment" means a power of
115	appointment exercisable in favor of the holder of the power, the
116	power holder's creditors, the power holder's estate, or the
117	creditors of the power holder's estate.
118	(7)  "Guardian of the person" means a person appointed by
119	the court to make decisions regarding the support, care,
120	education, health, and welfare of a minor or an incapacitated
121	adult. The term does not include a guardian ad litem.
122	(8)  "Guardian of the property" means a person appointed by
123	the court to administer the estate of a minor or incapacitated
124	adult.
125	(9)  "Interests of the beneficiaries" means the beneficial
126	interests provided in the terms of the trust.
127	(10)  "Jurisdiction" with respect to a geographic area,
128	includes a state or country.
129	(11)  "Person" means an individual; corporation; business
130	trust; estate; trust; partnership; limited liability company;
131	association; joint venture; government; governmental
132	subdivision, agency, or instrumentality; public corporation; or
133	any other legal or commercial entity.
134	(12)  "Power of withdrawal" means a presently exercisable
135	general power of appointment other than a power:
136	(a)  Exercisable by a trustee and limited by an
137	ascertainable standard; or
138	(b)  Exercisable by another person only upon consent of the
139	trustee or a person holding an adverse interest.
140	(13)  "Property" means anything that may be the subject of
141	ownership, real or personal, legal or equitable, or any interest
142	therein.
143	(14)  "Qualified beneficiary" means a living beneficiary
144	who, on the date the beneficiary's qualification is determined:
145	(a)  Is a distributee or permissible distributee of trust
146	income or principal;
147	(b)  Would be a distributee or permissible distributee of
148	trust income or principal if the interests of the distributees
149	described in paragraph (a) terminated on that date without
150	causing the trust to terminate; or
151	(c)  Would be a distributee or permissible distributee of
152	trust income or principal if the trust terminated in accordance
153	with its terms on that date.
154	(15)  "Revocable," as applied to a trust, means revocable
155	by the settlor without the consent of the trustee or a person
156	holding an adverse interest.
157	(16)  "Settlor" means a person, including a testator, who
158	creates or contributes property to a trust. If more than one
159	person creates or contributes property to a trust, each person
160	is a settlor of the portion of the trust property attributable
161	to that person's contribution except to the extent another
162	person has the power to revoke or withdraw that portion.
163	(17)  "Spendthrift provision" means a term of a trust that
164	restrains both voluntary and involuntary transfer of a
165	beneficiary's interest.
166	(18)  "State" means any state of the United States and
167	includes the District of Columbia, the Commonwealth of Puerto
168	Rico, and any territory or possession subject to the legislative
169	authority of the United States.
170	(19)  "Terms of a trust" means the manifestation of the
171	settlor's intent regarding a trust's provisions as expressed in
172	the trust instrument or as may be established by other evidence
173	that would be admissible in a judicial proceeding.
174	(20)  "Trust instrument" means an instrument executed by a
175	settlor that contains terms of the trust, including any
176	amendments to the trust.
177	(21)  "Trustee" means the original trustee and includes any
178	additional trustee, any successor trustee, and any cotrustee.
179	736.0104  Knowledge.--
180	(1)  Subject to subsection (2), a person has knowledge of a
181	fact if the person:
182	(a)  Has actual knowledge of the fact;
183	(b)  Has received a notice or notification of the fact; or
184	(c)  Has reason to know the fact from all the other facts
185	and circumstances known to the person at the time in question.
186	(2)  An organization that conducts activities through
187	employees has notice or knowledge of a fact involving a trust
188	only from the time the information was received by an employee
189	having responsibility to act on matters involving the trust, or
190	would have been brought to the employee's attention if the
191	organization had exercised reasonable diligence. An organization
192	exercises reasonable diligence if the organization maintains
193	reasonable routines for communicating significant information to
194	the employee having responsibility to act on matters involving
195	the trust and there is reasonable compliance with the routines.
196	Reasonable diligence does not require an employee of the
197	organization to communicate information unless the communication
198	is part of the individual's regular duties or the individual
199	knows a matter involving the trust would be materially affected
200	by the information.
201	736.0105  Default and mandatory rules.--
202	(1)  Except as otherwise provided in the terms of the
203	trust, this code governs the duties and powers of a trustee,
204	relations among trustees, and the rights and interests of a
205	beneficiary.
206	(2)  The terms of a trust prevail over any provision of
207	this code except:
208	(a)  The requirements for creating a trust.
209	(b)  The duty of the trustee to act in good faith and in
210	accordance with the terms and purposes of the trust and the
211	interests of the beneficiaries.
212	(c)  The requirement that a trust and its terms be for the
213	benefit of the trust's beneficiaries, and that the trust have a
214	purpose that is lawful, not contrary to public policy, and
215	possible to achieve.
216	(d)  The periods of limitation for commencing a judicial
217	proceeding.
218	(e)  The power of the court to take such action and
219	exercise such jurisdiction as may be necessary in the interests
220	of justice.
221	(f)  The requirements under s. 736.0108(1) for the
222	designation of a principal place of administration of the trust.
223	(g)  The jurisdiction and venue provisions in ss. 736.0202,
224	736.0203, and 736.0204.
225	(h)  The restrictions on the designation of representative
226	under s. 736.0306.
227	(i)  The formalities required under s. 736.0403(2) for the
228	execution of a trust.
229	(j)  The power of the court to modify or terminate a trust
230	under ss. 736.0410-736.04115, except as provided in s.
231	736.04115(3)(b), and under ss. 736.0413, 736.0415, and 736.0416.
232	(k)  The ability to modify a trust under s. 736.0412,
233	except as provided in s. 736.0412(4)(b).
234	(l)  The effect of a spendthrift provision and the rights
235	of certain creditors and assignees to reach a trust as provided
236	in part V.
237	(m)  The trustee's duty under s. 736.05053 to pay expenses
238	and obligations of the settlor's estate.
239	(n)  The trustee's duty under s. 736.05055 to file a notice
240	of trust at the settlor's death.
241	(o)  The right of a trustee under s. 736.0701 to decline a
242	trusteeship and the right of a trustee under s. 736.0705 to
243	resign a trusteeship.
244	(p)  The power of the court under s. 736.0702 to require,
245	dispense with, modify, or terminate a bond.
246	(q)  The power of the court under s. 736.0708(2) to adjust
247	a trustee's compensation specified in the terms of the trust
248	that is unreasonably low or high.
249	(r)  The duty under s. 736.0813(1)(a) and (b) to notify
250	qualified beneficiaries of an irrevocable trust of the existence
251	of the trust, of the identity of the trustee, and of their
252	rights to trust accountings.
253	(s)  The duty under s. 736.0813(1)(c) and (d) to provide a
254	complete copy of the trust instrument and to account to
255	qualified beneficiaries.
256	(t)  The duty under s. 736.0813(1)(e) to respond to the
257	request of a qualified beneficiary of an irrevocable trust for
258	relevant information about the assets and liabilities of the
259	trust and the particulars relating to trust administration.
260	(u)  The effect of an exculpatory term under s. 736.1011.
261	(v)  The rights under ss. 736.1013-736.1017 of a person
262	other than a trustee or beneficiary.
263	(w)  The effect of a penalty clause for contesting a trust
264	under s. 736.1108.
265	736.0106  Common law of trusts; principles of equity.--The
266	common law of trusts and principles of equity supplement this
267	code, except to the extent modified by this code or another law
268	of this state.
269	736.0107  Governing law.--The meaning and effect of the
270	terms of a trust are determined by:
271	(1)  The law of the jurisdiction designated in the terms
272	unless the designation of that jurisdiction's law is contrary to
273	a strong public policy of the jurisdiction having the most
274	significant relationship to the matter at issue; or
275	(2)  The law of the jurisdiction having the most
276	significant relationship to the matter at issue in the absence
277	of a controlling designation in the terms of the trust.
278	736.0108  Principal place of administration.--
279	(1)  Terms of a trust designating the principal place of
280	administration of the trust are valid only if there is a
281	sufficient connection with the designated jurisdiction. Without
282	precluding other means for establishing a sufficient connection,
283	terms of a trust designating the principal place of
284	administration are valid and controlling if:
285	(a)  A trustee's principal place of business is located in
286	or a trustee is a resident of the designated jurisdiction; or
287	(b)  All or part of the administration occurs in the
288	designated jurisdiction.
289	(2)  Unless otherwise validly designated in the trust
290	instrument, the principal place of administration of a trust is
291	the trustee's usual place of business where the records
292	pertaining to the trust are kept or, if the trustee has no place
293	of business, the trustee's residence. In the case of cotrustees,
294	the principal place of administration is:
295	(a)  The usual place of business of the corporate trustee,
296	if there is only one corporate cotrustee;
297	(b)  The usual place of business or residence of the
298	individual trustee who is a professional fiduciary, if there is
299	only one such person and no corporate cotrustee; or otherwise
300	(c)  The usual place of business or residence of any of the
301	cotrustees as agreed on by the cotrustees.
302	(3)  Notwithstanding any other provision of this section,
303	the principal place of administration of a trust, for which a
304	bank, association, or trust company organized under the laws of
305	this state or bank or savings association organized under the
306	laws of the United States with its main office in this state has
307	been appointed trustee, shall not be moved or otherwise affected
308	solely because the trustee engaged in an interstate merger
309	transaction with an out-of-state bank pursuant to s. 658.2953 in
310	which the out-of-state bank is the resulting bank.
311	(4)  A trustee is under a continuing duty to administer the
312	trust at a place appropriate to its purposes, its
313	administration, and the interests of the beneficiaries.
314	(5)  Without precluding the right of the court to order,
315	approve, or disapprove a transfer, the trustee, in furtherance
316	of the duty prescribed by subsection (4), may transfer the
317	trust's principal place of administration to another state or to
318	a jurisdiction outside of the United States.
319	(6)  The trustee shall notify the qualified beneficiaries
320	of a proposed transfer of a trust's principal place of
321	administration not less than 60 days before initiating the
322	transfer. The notice of proposed transfer must include:
323	(a)  The name of the jurisdiction to which the principal
324	place of administration is to be transferred.
325	(b)  The address and telephone number at the new location
326	at which the trustee can be contacted.
327	(c)  An explanation of the reasons for the proposed
328	transfer.
329	(d)  The date on which the proposed transfer is anticipated
330	to occur.
331	(e)  The date, not less than 60 days after the notice is
332	provided, by which the qualified beneficiary must notify the
333	trustee of an objection to the proposed transfer.
334	(7)  The authority of a trustee to act under this section
335	without court approval to transfer a trust's principal place of
336	administration is suspended if a qualified beneficiary files a
337	lawsuit objecting to the proposed transfer on or before the date
338	specified in the notice. The suspension is effective until the
339	lawsuit is dismissed or withdrawn.
340	(8)  In connection with a transfer of the trust's principal
341	place of administration, the trustee may transfer any of the
342	trust property to a successor trustee designated in the terms of
343	the trust or appointed pursuant to s. 736.0704.
344	736.0109  Methods and waiver of notice.--
345	(1)  Notice to a person under this code or the sending of a
346	document to a person under this code must be accomplished in a
347	manner reasonably suitable under the circumstances and likely to
348	result in receipt of the notice or document. Permissible methods
349	of notice or for sending a document include first-class mail,
350	personal delivery, delivery to the person's last known place of
351	residence or place of business, or a properly directed facsimile
352	or other electronic message.
353	(2)  Notice otherwise required under this code or a
354	document otherwise required to be sent under this code need not
355	be provided to a person whose identity or location is unknown to
356	and not reasonably ascertainable by the trustee.
357	(3)  Notice under this code or the sending of a document
358	under this code may be waived by the person to be notified or to
359	whom the document is to be sent.
360	(4)  Notice of a judicial proceeding must be given as
361	provided in the Florida Rules of Civil Procedure.
362	736.0110  Others treated as qualified beneficiaries.--
363	(1)  A charitable organization expressly designated to
364	receive distributions under the terms of a charitable trust has
365	the rights of a qualified beneficiary under this code if the
366	charitable organization, on the date the charitable
367	organization's qualification is being determined:
368	(a)  Is a distributee or permissible distributee of trust
369	income or principal;
370	(b)  Would be a distributee or permissible distributee of
371	trust income or principal on termination of the interests of
372	other distributees or permissible distributees then receiving or
373	eligible to receive distributions; or
374	(c)  Would be a distributee or permissible distributee of
375	trust income or principal if the trust terminated on that date.
376	(2)  A person appointed to enforce a trust created for the
377	care of an animal or another noncharitable purpose as provided
378	in s. 736.0408 or s. 736.0409 has the rights of a qualified
379	beneficiary under this code.
380	(3)  The Attorney General may assert the rights of a
381	qualified beneficiary with respect to a charitable trust having
382	its principal place of administration in this state.
383	736.0111  Nonjudicial settlement agreements.--
384	(1)  For purposes of this section, the term "interested
385	persons" means persons whose interest would be affected by a
386	settlement agreement.
387	(2)  Except as otherwise provided in subsection (3),
388	interested persons may enter into a binding nonjudicial
389	settlement agreement with respect to any matter involving a
390	trust.
391	(3)  A nonjudicial settlement agreement among the trustee
392	and trust beneficiaries is valid only to the extent the terms
393	and conditions could be properly approved by the court. A
394	nonjudicial settlement may not be used to produce a result not
395	authorized by other provisions of this code, including, but not
396	limited to, terminating or modifying a trust in an impermissible
397	manner.
398	(4)  Matters that may be resolved by a nonjudicial
399	settlement agreement include:
400	(a)  The interpretation or construction of the terms of the
401	trust.
402	(b)  The approval of a trustee's report or accounting.
403	(c)  The direction to a trustee to refrain from performing
404	a particular act or the grant to a trustee of any necessary or
405	desirable power.
406	(d)  The resignation or appointment of a trustee and the
407	determination of a trustee's compensation.
408	(e)  The transfer of a trust's principal place of
409	administration.
410	(f)  The liability of a trustee for an action relating to
411	the trust.
412	(5)  Any interested person may request the court to approve
413	or disapprove a nonjudicial settlement agreement.
414	736.0112  Qualification of foreign trustee.--Unless
415	otherwise doing business in this state, local qualification by a
416	foreign trustee is not required for the trustee to receive
417	distribution from a local estate. Nothing in this chapter shall
418	affect the provisions of s. 660.41.
419	Section 2.  Part II of chapter 736, Florida Statutes,
420	consisting of sections 736.0201, 736.0202, 736.0203, 736.0204,
421	736.0205, 736.0206, and 736.0207, is created to read:
422
423	PART II
424	JUDICIAL PROCEEDINGS
425
426	736.0201  Role of court in trust proceedings.--
427	(1)  Except as provided in subsection (5) and s. 736.0206,
428	proceedings concerning trusts shall be commenced by filing a
429	complaint and shall be governed by the Florida Rules of Civil
430	Procedure.
431	(2)  The court may intervene in the administration of a
432	trust to the extent the court's jurisdiction is invoked by an
433	interested person or as provided by law.
434	(3)  A trust is not subject to continuing judicial
435	supervision unless ordered by the court.
436	(4)  A judicial proceeding involving a trust may relate to
437	the validity, administration, or distribution of a trust,
438	including proceedings to:
439	(a)  Determine the validity of all or part of a trust;
440	(b)  Appoint or remove a trustee;
441	(c)  Review trustees' fees;
442	(d)  Review and settle interim or final accounts;
443	(e)  Ascertain beneficiaries; determine any question
444	arising in the administration or distribution of any trust,
445	including questions of construction of trust instruments;
446	instruct trustees; and determine the existence or nonexistence
447	of any immunity, power, privilege, duty, or right;
448	(f)  Obtain a declaration of rights; or
449	(g)  Determine any other matters involving trustees and
450	beneficiaries.
451	(5)  A proceeding for the construction of a testamentary
452	trust may be filed in the probate proceeding for the testator's
453	estate. The proceeding shall be governed by the Florida Probate
454	Rules.
455	736.0202  Jurisdiction over trustee and beneficiary.--
456	(1)  By accepting the trusteeship of a trust having its
457	principal place of administration in this state or by moving the
458	principal place of administration to this state, the trustee
459	submits personally to the jurisdiction of the courts of this
460	state regarding any matter involving the trust.
461	(2)  With respect to their interests in the trust, the
462	beneficiaries of a trust having its principal place of
463	administration in this state are subject to the jurisdiction of
464	the courts of this state regarding any matter involving the
465	trust. By accepting a distribution from such a trust, the
466	recipient submits personally to the jurisdiction of the courts
467	of this state regarding any matter involving the distribution.
468	(3)  This section does not preclude other methods of
469	obtaining jurisdiction over a trustee, beneficiary, or other
470	person receiving property from the trust.
471	736.0203  Subject-matter jurisdiction.--The circuit court
472	has original jurisdiction in this state of all proceedings
473	arising under this code.
474	736.0204  Venue.--Venue for actions and proceedings
475	concerning trusts, including those under s. 736.0201, may be
476	laid in:
477	(1)  Any county where the venue is proper under chapter 47;
478	(2)  Any county where the beneficiary suing or being sued
479	resides or has its principal place of business; or
480	(3)  The county where the trust has its principal place of
481	administration.
482	736.0205  Trust proceedings; dismissal of matters relating
483	to foreign trusts.--Over the objection of a party, the court
484	shall not entertain proceedings under s. 736.0201 for a trust
485	registered, or having its principal place of administration, in
486	another state unless all interested parties could not be bound
487	by litigation in the courts of the state where the trust is
488	registered or has its principal place of administration. The
489	court may condition a stay or dismissal of a proceeding under
490	this section on the consent of any party to jurisdiction of the
491	state where the trust is registered or has its principal place
492	of business, or the court may grant a continuance or enter any
493	other appropriate order.
494	736.0206  Proceedings for review of employment of agents
495	and review of compensation of trustee and employees of trust.--
496	(1)  After notice to all interested persons, the court may
497	review the propriety of the employment by a trustee of any
498	person, including any attorney, auditor, investment adviser, or
499	other specialized agent or assistant, and the reasonableness of
500	any compensation paid to that person or to the trustee.
501	(2)  If the settlor's estate is being probated, and the
502	settlor's trust or the trustee of the settlor's trust is a
503	beneficiary under the settlor's will, the trustee, any person
504	employed by the trustee, or any interested person may have the
505	propriety of employment and the reasonableness of the
506	compensation of the trustee or any person employed by the
507	trustee determined in the probate proceeding.
508	(3)  The burden of proof of the propriety of the employment
509	and the reasonableness of the compensation shall be on the
510	trustee and the person employed by the trustee. Any person who
511	is determined to have received excessive compensation from a
512	trust for services rendered may be ordered to make appropriate
513	refunds.
514	(4)  Court proceedings to determine reasonable compensation
515	of a trustee or any person employed by a trustee, if required,
516	are a part of the trust administration process. The costs,
517	including attorney's fees, of the person assuming the burden of
518	proof of propriety of the employment and reasonableness of the
519	compensation shall be determined by the court and paid from the
520	assets of the trust unless the court finds the compensation paid
521	or requested to be substantially unreasonable. The court shall
522	direct from which part of the trust assets the compensation
523	shall be paid.
524	(5)  The court may determine reasonable compensation for a
525	trustee or any person employed by a trustee without receiving
526	expert testimony. Any party may offer expert testimony after
527	notice to interested persons. If expert testimony is offered, a
528	reasonable expert witness fee shall be awarded by the court and
529	paid from the assets of the trust. The court shall direct from
530	which part of the trust assets the fee shall be paid.
531	(6)  Persons given notice as provided in this section shall
532	be bound by all orders entered on the complaint.
533	(7)  In a proceeding pursuant to subsection (2), the
534	petitioner may serve formal notice as provided in the Florida
535	Probate Rules, and such notice shall be sufficient for the court
536	to acquire jurisdiction over the person receiving the notice to
537	the extent of the person's interest in the trust.
538	736.0207  Trust contests.--An action to contest the
539	validity of all or part of a trust may not be commenced until
540	the trust becomes irrevocable, except this section does not
541	prohibit such action by the guardian of the property of an
542	incapacitated settlor.
543	Section 3.  Part III of chapter 736, Florida Statutes,
544	consisting of sections 736.0301, 736.0302, 736.0303, 736.0304,
545	736.0305, and 736.0306, is created to read:
546
547	PART III
548	REPRESENTATION
549
550	736.0301  Representation; basic effect.--
551	(1)  Notice, information, accountings, or reports given to
552	a person who may represent and bind another person under this
553	part may serve as a substitute for and have the same effect as
554	notice, information, accountings, or reports given directly to
555	the other person.
556	(2)  Actions taken by a person who represents the interests
557	of another person under this part are binding on the person
558	whose interests are represented to the same extent as if the
559	actions had been taken by the person whose interests are
560	represented.
561	(3)  Except as otherwise provided in s. 736.0602, a person
562	under this part who represents a settlor lacking capacity may
563	receive notice and give a binding consent on the settlor's
564	behalf.
565	(4)  A trustee is not liable for giving notice,
566	information, accountings, or reports to a beneficiary who is
567	represented by another person under this part and nothing in
568	this part prohibits the trustee from giving notice, information,
569	accountings, or reports to the person represented.
570	736.0302  Representation by holder of power of
571	appointment.--
572	(1)  The holder of a power of appointment may represent and
573	bind persons whose interests, as permissible appointees, takers
574	in default, or otherwise, are subject to the power.
575	(2)  Subsection (1) does not apply to:
576	(a)  Any matter determined by the court to involve fraud or
577	bad faith by the trustee;
578	(b)  A power of a trustee to distribute trust property; or
579	(c)  A power of appointment held by a person while the
580	person is the sole trustee.
581	736.0303  Representation by fiduciaries and parents.--To
582	the extent there is no conflict of interest between the
583	representative and the person represented or among those being
584	represented with respect to a particular question or dispute:
585	(1)  A guardian of the property may represent and bind the
586	estate that the guardian of the property controls.
587	(2)  An agent having authority to act with respect to the
588	particular question or dispute may represent and bind the
589	principal.
590	(3)  A trustee may represent and bind the beneficiaries of
591	the trust.
592	(4)  A personal representative of a decedent's estate may
593	represent and bind persons interested in the estate.
594	(5)  A parent may represent and bind the parent's unborn
595	child, or the parent's minor child if a guardian of the property
596	for the minor child has not been appointed.
597	736.0304  Representation by person having substantially
598	identical interest.--Unless otherwise represented, a minor,
599	incapacitated, or unborn individual, or a person whose identity
600	or location is unknown and not reasonably ascertainable, may be
601	represented by and bound by another person having a
602	substantially identical interest with respect to the particular
603	question or dispute, but only to the extent there is no conflict
604	of interest between the representative and the person
605	represented.
606	736.0305  Appointment of representative.--
607	(1)  If the court determines that an interest is not
608	represented under this part, or that the otherwise available
609	representation might be inadequate, the court may appoint a
610	representative to receive notice, give consent, and otherwise
611	represent, bind, and act on behalf of a minor, incapacitated, or
612	unborn individual, or a person whose identity or location is
613	unknown. If not precluded by a conflict of interest, a
614	representative may be appointed to represent several persons or
615	interests.
616	(2)  A representative may act on behalf of the individual
617	represented with respect to any matter arising under this code,
618	whether or not a judicial proceeding concerning the trust is
619	pending.
620	(3)  In making decisions, a representative may consider
621	general benefits accruing to the living members of the
622	represented individual's family.
623	736.0306  Designated representative.--
624	(1)  If authorized in the trust instrument, one or more
625	persons may be designated to represent and bind a beneficiary
626	and receive any notice, information, accounting, or report.
627	(2)  Except as otherwise provided in this code, a person
628	designated, as provided in subsection (1) may not represent and
629	bind a beneficiary while that person is serving as trustee.
630	(3)  Except as otherwise provided in this code, a person
631	designated, as provided in subsection (1) may not represent and
632	bind another beneficiary if the person designated also is a
633	beneficiary, unless:
634	(a)  That person was named by the settlor; or
635	(b)  That person is the beneficiary's spouse or a
636	grandparent or descendant of a grandparent of the beneficiary or
637	the beneficiary's spouse.
638	(4)  No person designated, as provided in subsection (1) is
639	liable to the beneficiary whose interests are represented, or to
640	anyone claiming through that beneficiary, for any actions or
641	omissions to act made in good faith.
642	Section 4.  Part IV of chapter 736, Florida Statutes,
643	consisting of sections 736.0401, 736.0402, 736.0403, 736.0404,
644	736.0405, 736.0406, 736.0407, 736.0408, 736.0409, 736.0410,
645	736.04113, 736.04115, 736.0412, 736.0413, 736.0414, 736.0415,
646	736.0416, and 736.0417, is created to read:
647
648	PART IV
649	CREATION, VALIDITY, MODIFICATION, AND TERMINATION
650
651	736.0401  Methods of creating trust.--A trust may be
652	created by:
653	(1)  Transfer of property to another person as trustee
654	during the settlor's lifetime or by will or other disposition
655	taking effect on the settlor's death;
656	(2)  Declaration by the owner of property that the owner
657	holds identifiable property as trustee; or
658	(3)  Exercise of a power of appointment in favor of a
659	trustee.
660	736.0402  Requirements for creation.--
661	(1)  A trust is created only if:
662	(a)  The settlor has capacity to create a trust.
663	(b)  The settlor indicates an intent to create the trust.
664	(c)  The trust has a definite beneficiary or is:
665	1.  A charitable trust;
666	2.  A trust for the care of an animal, as provided in s.
667	736.0408; or
668	3.  A trust for a noncharitable purpose, as provided in s.
669	736.0409.
670	(d)  The trustee has duties to perform.
671	(e)  The same person is not the sole trustee and sole
672	beneficiary.
673	(2)  A beneficiary is definite if the beneficiary can be
674	ascertained now or in the future, subject to any applicable rule
675	against perpetuities.
676	(3)  A power of a trustee to select a beneficiary from an
677	indefinite class is valid. If the power is not exercised within
678	a reasonable time, the power fails and the property subject to
679	the power passes to the persons who would have taken the
680	property had the power not been conferred.
681	736.0403  Trusts created in other jurisdictions;
682	formalities required for revocable trusts.--
683	(1)  A trust not created by will is validly created if the
684	creation of the trust complies with the law of the jurisdiction
685	in which the trust instrument was executed or the law of the
686	jurisdiction in which, at the time of creation, the settlor was
687	domiciled.
688	(2)  Notwithstanding subsection (1):
689	(a)  No trust or confidence of or in any messuages, lands,
690	tenements, or hereditaments shall arise or result unless the
691	trust complies with the provisions of s. 689.05.
692	(b)  The testamentary aspects of a revocable trust,
693	executed by a settlor who is a domiciliary of this state at the
694	time of execution, are invalid unless the trust instrument is
695	executed by the settlor with the formalities required for the
696	execution of a will in this state. For purposes of this
697	subsection, the term "testamentary aspects" means those
698	provisions of the trust instrument that dispose of the trust
699	property on or after the death of the settlor other than to the
700	settlor's estate.
701	(3)  This section does not apply to trusts established as
702	part of an employee annuity described in s. 403 of the Internal
703	Revenue Code of 1986, as amended, an individual retirement
704	account as described in s. 408 of the Internal Revenue Code of
705	1986, as amended, a Keogh (HR-10) Plan, or a retirement or other
706	plan that is qualified under s. 401 of the Internal Revenue Code
707	of 1986, as amended.
708	(4)  This section applies to trusts created on or after the
709	effective date of this code. Section 737.111, as in effect prior
710	to the effective date of this code, continues to apply to trusts
711	created before the effective date of this code.
712	736.0404  Trust purposes.--A trust may be created only to
713	the extent the purposes of the trust are lawful, not contrary to
714	public policy, and possible to achieve. A trust and its terms
715	must be for the benefit of its beneficiaries.
716	736.0405  Charitable purposes; enforcement.--
717	(1)  A trust may be created for charitable purposes.
718	Charitable purposes include, but are not limited to, the relief
719	of poverty; the advancement of arts, sciences, education, or
720	religion; and the promotion of health, governmental, or
721	municipal purposes.
722	(2)  If the terms of a charitable trust do not indicate a
723	particular charitable purpose or beneficiary, the court may
724	select one or more charitable purposes or beneficiaries. The
725	selection must be consistent with the settlor's intent to the
726	extent such intent can be ascertained.
727	(3)  The settlor of a charitable trust, among others, has
728	standing to enforce the trust.
729	736.0406  Effect of fraud, duress, mistake, or undue
730	influence.--A trust is void if the creation of the trust is
731	procured by fraud, duress, mistake, or undue influence. Any part
732	of the trust is void if procured by such means, but the
733	remainder of the trust not procured by such means is valid if
734	the remainder is not invalid for other reasons.
735	736.0407  Evidence of oral trust.--Except as required by s.
736	736.0403 or a law other than this code, a trust need not be
737	evidenced by a trust instrument but the creation of an oral
738	trust and its terms may be established only by clear and
739	convincing evidence.
740	736.0408  Trust for care of an animal.--
741	(1)  A trust may be created to provide for the care of an
742	animal alive during the settlor's lifetime. The trust terminates
743	on the death of the animal or, if the trust was created to
744	provide for the care of more than one animal alive during the
745	settlor's lifetime, on the death of the last surviving animal.
746	(2)  A trust authorized by this section may be enforced by
747	a person appointed in the terms of the trust or, if no person is
748	appointed, by a person appointed by the court. A person having
749	an interest in the welfare of the animal may request the court
750	to appoint a person to enforce the trust or to remove a person
751	appointed.
752	(3)  Property of a trust authorized by this section may be
753	applied only to the intended use of the property, except to the
754	extent the court determines that the value of the trust property
755	exceeds the amount required for the intended use. Except as
756	otherwise provided in the terms of the trust, property not
757	required for the intended use must be distributed to the
758	settlor, if then living, otherwise as part of the settlor's
759	estate.
760	736.0409  Noncharitable trust without ascertainable
761	beneficiary.--Except as otherwise provided in s. 736.0408 or by
762	another provision of law, the following rules apply:
763	(1)  A trust may be created for a noncharitable purpose
764	without a definite or definitely ascertainable beneficiary or
765	for a noncharitable but otherwise valid purpose to be selected
766	by the trustee. The trust may not be enforced for more than 21
767	years.
768	(2)  A trust authorized by this section may be enforced by
769	a person appointed in the terms of the trust or, if no person is
770	appointed, by a person appointed by the court.
771	(3)  Property of a trust authorized by this section may be
772	applied only to the intended use of the property, except to the
773	extent the court determines that the value of the trust property
774	exceeds the amount required for the intended use. Except as
775	otherwise provided in the terms of the trust, property not
776	required for the intended use must be distributed to the
777	settlor, if then living, otherwise as part of the settlor's
778	estate.
779	736.0410  Modification or termination of trust; proceedings
780	for disapproval of nonjudicial acts.--
781	(1)  In addition to the methods of termination prescribed
782	by ss. 736.04113-736.0414, a trust terminates to the extent the
783	trust expires or is revoked or is properly distributed pursuant
784	to the terms of the trust.
785	(2)  A proceeding to disapprove a proposed modification or
786	termination under s. 736.0412 or a trust combination or division
787	under s. 736.0417 may be commenced by any beneficiary.
788	(3)  A proceeding to disapprove a proposed termination
789	under s. 736.0414(1) may be commenced by any qualified
790	beneficiary.
791	736.04113  Judicial modification of irrevocable trust when
792	modification is not inconsistent with settlor's purpose.--
793	(1)  Upon the application of a trustee of the trust or any
794	qualified beneficiary, a court at any time may modify the terms
795	of a trust that is not then revocable in the manner provided in
796	subsection (2), if:
797	(a)  The purposes of the trust have been fulfilled or have
798	become illegal, impossible, wasteful, or impracticable to
799	fulfill;
800	(b)  Because of circumstances not anticipated by the
801	settlor, compliance with the terms of the trust would defeat or
802	substantially impair the accomplishment of a material purpose of
803	the trust; or
804	(c)  A material purpose of the trust no longer exists.
805	(2)  In modifying a trust under this section, a court may:
806	(a)  Amend or change the terms of the trust, including
807	terms governing distribution of the trust income or principal or
808	terms governing administration of the trust;
809	(b)  Terminate the trust in whole or in part;
810	(c)  Direct or permit the trustee to do acts that are not
811	authorized or that are prohibited by the terms of the trust; or
812	(d)  Prohibit the trustee from performing acts that are
813	permitted or required by the terms of the trust.
814	(3)  In exercising discretion to modify a trust under this
815	section:
816	(a)  The court shall consider the terms and purposes of the
817	trust, the facts and circumstances surrounding the creation of
818	the trust, and extrinsic evidence relevant to the proposed
819	modification.
820	(b)  The court shall consider spendthrift provisions as a
821	factor in making a decision but the court is not precluded from
822	modifying a trust because the trust contains spendthrift
823	provisions.
824	(4)  The provisions of this section are in addition to, and
825	not in derogation of, rights under the common law to modify,
826	amend, terminate, or revoke trusts.
827	736.04115  Judicial modification of irrevocable trust when
828	modification is in best interest of beneficiaries.--
829	(1)  Without regard to the reasons for modification
830	provided in s. 736.04113, if compliance with the terms of a
831	trust is not in the best interests of the beneficiaries, upon
832	the application of a trustee or any qualified beneficiary, a
833	court may at any time modify a trust that is not then revocable
834	as provided in s. 736.04113(2).
835	(2)  In exercising discretion to modify a trust under this
836	section:
837	(a)  The court shall exercise discretion in a manner that
838	conforms to the extent possible with the intent of the settlor,
839	taking into account the current circumstances and best interests
840	of the beneficiaries.
841	(b)  The court shall consider the terms and purposes of the
842	trust, the facts and circumstances surrounding the creation of
843	the trust, and extrinsic evidence relevant to the proposed
844	modification.
845	(c)  The court shall consider spendthrift provisions as a
846	factor in making a decision but the court is not precluded from
847	modifying a trust because the trust contains spendthrift
848	provisions.
849	(3)  This section shall not apply to:
850	(a)  Any trust created prior to January 1, 2001.
851	(b)  Any trust created after December 31, 2000, if:
852	1.  Under the terms of the trust, all beneficial interests
853	in the trust must vest or terminate within the period prescribed
854	by the rule against perpetuities in s. 689.225(2),
855	notwithstanding s. 689.225(2)(f).
856	2.  The terms of the trust expressly prohibit judicial
857	modification.
858	(4)  For purposes of subsection (3), a revocable trust
859	shall be treated as created when the right of revocation
860	terminates.
861	(5)  The provisions of this section are in addition to, and
862	not in derogation of, rights under the common law to modify,
863	amend, terminate, or revoke trusts.
864	736.0412  Nonjudicial modification of irrevocable trust.--
865	(1)  After the settlor's death, a trust may be modified at
866	any time as provided in s. 736.04113(2) upon the unanimous
867	agreement of the trustee and all qualified beneficiaries.
868	(2)  Modification of a trust as authorized in this section
869	is not prohibited by a spendthrift clause or by a provision in
870	the trust instrument that prohibits amendment or revocation of
871	the trust.
872	(3)  An agreement to modify a trust under this section is
873	binding on a beneficiary whose interest is represented by
874	another person under part III of this code.
875	(4)  This section shall not apply to:
876	(a)  Any trust created prior to January 1, 2001.
877	(b)  Any trust created after December 31, 2000, if, under
878	the terms of the trust, all beneficial interests in the trust
879	must vest or terminate within the period prescribed by the rule
880	against perpetuities in s. 689.225(2), notwithstanding s.
881	689.225(2)(f), unless the terms of the trust expressly authorize
882	nonjudicial modification.
883	(c)  Any trust for which a charitable deduction is allowed
884	or allowable under the Internal Revenue Code until the
885	termination of all charitable interests in the trust.
886	(5)  For purposes of subsection (4), a revocable trust
887	shall be treated as created when the right of revocation
888	terminates.
889	(6)  The provisions of this section are in addition to, and
890	not in derogation of, rights under the common law to modify,
891	amend, terminate, or revoke trusts.
892	736.0413  Cy pres.--
893	(1)  If a particular charitable purpose becomes unlawful,
894	impracticable, impossible to achieve, or wasteful, the court may
895	apply the doctrine of cy pres to modify or terminate the trust
896	by directing that the trust property be applied or distributed,
897	in whole or in part, in a manner consistent with the settlor's
898	charitable purposes.
899	(2)  A proceeding to modify or terminate a trust under this
900	section may be commenced by a settlor, a trustee, or any
901	qualified beneficiary.
902	736.0414  Modification or termination of uneconomic
903	trust.--
904	(1)  After notice to the qualified beneficiaries, the
905	trustee of a trust consisting of trust property having a total
906	value less than $100,000 may terminate the trust if the trustee
907	concludes that the value of the trust property is insufficient
908	to justify the cost of administration.
909	(2)  Upon application of a trustee or any qualified
910	beneficiary, the court may modify or terminate a trust or remove
911	the trustee and appoint a different trustee if the court
912	determines that the value of the trust property is insufficient
913	to justify the cost of administration.
914	(3)  Upon termination of a trust under this section, the
915	trustee shall distribute the trust property in a manner
916	consistent with the purposes of the trust. The trustee may enter
917	into agreements or make such other provisions that the trustee
918	deems necessary or appropriate to protect the interests of the
919	beneficiaries and the trustee and to carry out the intent and
920	purposes of the trust.
921	(4)  The existence of a spendthrift provision in the trust
922	does not make this section inapplicable unless the trust
923	instrument expressly provides that the trustee may not terminate
924	the trust pursuant to this section.
925	(5)  This section does not apply to an easement for
926	conservation or preservation.
927	736.0415  Reformation to correct mistakes.--Upon
928	application of a settlor or any interested person, the court may
929	reform the terms of a trust, even if unambiguous, to conform the
930	terms to the settlor's intent if it is proved by clear and
931	convincing evidence that both the accomplishment of the
932	settlor's intent and the terms of the trust were affected by a
933	mistake of fact or law, whether in expression or inducement. In
934	determining the settlor's original intent, the court may
935	consider evidence relevant to the settlor's intent even though
936	the evidence contradicts an apparent plain meaning of the trust
937	instrument.
938	736.0416  Modification to achieve settlor's tax
939	objectives.--Upon application of any interested person, to
940	achieve the settlor's tax objectives the court may modify the
941	terms of a trust in a manner that is not contrary to the
942	settlor's probable intent. The court may provide that the
943	modification has retroactive effect.
944	736.0417  Combination and division of trusts.--
945	(1)  After notice to the qualified beneficiaries, a trustee
946	may combine two or more trusts into a single trust or divide a
947	trust into two or more separate trusts, if the result does not
948	impair rights of any beneficiary or adversely affect achievement
949	of the purposes of the trusts or trust, respectively.
950	(2)  Subject to the terms of the trust, the trustee may
951	take into consideration differences in federal tax attributes
952	and other pertinent factors in administering the trust property
953	of any separate account or trust, in making applicable tax
954	elections, and in making distributions. A separate trust created
955	by severance must be treated as a separate trust for all
956	purposes from the date on which the severance is effective. The
957	effective date of the severance may be retroactive to a date
958	before the date on which the trustee exercises such power.
959	Section 5.  Part V of chapter 736, Florida Statutes,
960	consisting of sections 736.0501, 736.0502, 736.0503, 736.0504,
961	736.0505, 736.05053, 736.05055, 736.0506, and 736.0507, is
962	created to read:
963
964	PART V
965	CREDITORS' CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTS
966
967	736.0501  Rights of beneficiary's creditor or assignee.--To
968	the extent a beneficiary's interest is not subject to a
969	spendthrift provision, the court may authorize a creditor or
970	assignee of the beneficiary to reach the beneficiary's interest
971	by attachment of present or future distributions to or for the
972	benefit of the beneficiary or by other means. The court may
973	limit the award to such relief as is appropriate under the
974	circumstances.
975	736.0502  Spendthrift provision.--
976	(1)  A spendthrift provision is valid only if the provision
977	restrains both voluntary and involuntary transfer of a
978	beneficiary's interest. This subsection does not apply to any
979	trust in existence on the effective date of this code.
980	(2)  A term of a trust providing that the interest of a
981	beneficiary is held subject to a spendthrift trust, or words of
982	similar import, is sufficient to restrain both voluntary and
983	involuntary transfer of the beneficiary's interest.
984	(3)  A beneficiary may not transfer an interest in a trust
985	in violation of a valid spendthrift provision and, except as
986	otherwise provided in this part, a creditor or assignee of the
987	beneficiary may not reach the interest or a distribution by the
988	trustee before receipt of the interest or distribution by the
989	beneficiary.
990	(4)  A valid spendthrift provision does not prevent the
991	appointment of interests through the exercise of a power of
992	appointment.
993	736.0503  Exceptions to spendthrift provision.--
994	(1)  As used in this section, the term "child" includes any
995	person for whom an order or judgment for child support has been
996	entered in this or any other state.
997	(2)  To the extent provided in subsection (3), a
998	spendthrift provision is unenforceable against:
999	(a)  A beneficiary's child, spouse, or former spouse who
1000	has a judgment or court order against the beneficiary for
1001	support or maintenance.
1002	(b)  A judgment creditor who has provided services for the
1003	protection of a beneficiary's interest in the trust.
1004	(c)  A claim of this state or the United States to the
1005	extent a law of this state or a federal law so provides.
1006	(3)  Except as otherwise provided in this subsection, a
1007	claimant against which a spendthrift provision may not be
1008	enforced may obtain from a court, or pursuant to the Uniform
1009	Interstate Family Support Act, an order attaching present or
1010	future distributions to or for the benefit of the beneficiary.
1011	The court may limit the award to such relief as is appropriate
1012	under the circumstances. Notwithstanding this subsection, the
1013	remedies provided in this subsection apply to a claim by a
1014	beneficiary's child, spouse, former spouse, or a judgment
1015	creditor described in paragraph (2)(a) or paragraph (2)(b) only
1016	as a last resort upon an initial showing that traditional
1017	methods of enforcing the claim are insufficient.
1018	736.0504  Discretionary trusts; effect of standard.--
1019	(1)  Whether or not a trust contains a spendthrift
1020	provision, a creditor of a beneficiary may not compel a
1021	distribution that is subject to the trustee's discretion, even
1022	if:
1023	(a)  The discretion is expressed in the form of a standard
1024	of distribution; or
1025	(b)  The trustee has abused the discretion.
1026	(2)  If the trustee's discretion to make distributions for
1027	the trustee's own benefit is limited by an ascertainable
1028	standard, a creditor may not reach or compel distribution of the
1029	beneficial interest except to the extent the interest would be
1030	subject to the creditor's claim were the beneficiary not acting
1031	as trustee.
1032	(3)  This section does not limit the right of a beneficiary
1033	to maintain a judicial proceeding against a trustee for an abuse
1034	of discretion or failure to comply with a standard for
1035	distribution.
1036	736.0505  Creditors' claims against settlor.--
1037	(1)  Whether or not the terms of a trust contain a
1038	spendthrift provision, the following rules apply:
1039	(a)  During the lifetime of the settlor, the property of a
1040	revocable trust is subject to claims of the settlor's creditors.
1041	(b)  With respect to an irrevocable trust, a creditor or
1042	assignee of the settlor may reach the maximum amount that can be
1043	distributed to or for the settlor's benefit. If a trust has more
1044	than one settlor, the amount the creditor or assignee of a
1045	particular settlor may reach may not exceed the settlor's
1046	interest in the portion of the trust attributable to that
1047	settlor's contribution.
1048	(2)  For purposes of this section:
1049	(a)  During the period the power may be exercised, the
1050	holder of a power of withdrawal is treated in the same manner as
1051	the settlor of a revocable trust to the extent of the property
1052	subject to the power.
1053	(b)  Upon the lapse, release, or waiver of the power, the
1054	holder is treated as the settlor of the trust only to the extent
1055	the value of the property affected by the lapse, release, or
1056	waiver exceeds the greater of the amount specified in:
1057	1.  Section 2041(b)(2) or s. 2514(e); or
1058	2.  Section 2503(b),
1059
1060	of the Internal Revenue Code of 1986, as amended.
1061	736.05053  Trustee's duty to pay expenses and obligations
1062	of settlor's estate.--
1063	(1)  A trustee of a trust described in s. 733.707(3) shall
1064	pay to the personal representative of a settlor's estate any
1065	amounts that the personal representative certifies in writing to
1066	the trustee are required to pay the expenses of the
1067	administration and obligations of the settlor's estate. Payments
1068	made by a trustee, unless otherwise provided in the trust
1069	instrument, must be charged as expenses of the trust without a
1070	contribution from anyone. The interests of all beneficiaries of
1071	such a trust are subject to the provisions of this subsection;
1072	however, the payments must be made from assets, property, or the
1073	proceeds of the assets or property, other than assets proscribed
1074	in s. 733.707(3), that are included in the settlor's gross
1075	estate for federal estate tax purposes.
1076	(2)  Unless a settlor provides by will, or designates in a
1077	trust described in s. 733.707(3) funds or property passing under
1078	the trust to be used as designated, the expenses of the
1079	administration and obligations of the settlor's estate must be
1080	paid from the trust in the following order:
1081	(a)  Property of the residue of the trust remaining after
1082	all distributions that are to be satisfied by reference to a
1083	specific property or type of property, fund, or sum.
1084	(b)  Property that is not to be distributed from specified
1085	or identified property or a specified or identified item of
1086	property.
1087	(c)  Property that is to be distributed from specified or
1088	identified property or a specified or identified item of
1089	property.
1090	(3)  Trust distributions that are to be satisfied from
1091	specified or identified property must be classed as
1092	distributions to be satisfied from the general assets of the
1093	trust and not otherwise disposed of in the trust instrument on
1094	the failure or insufficiency of funds or property from which
1095	payment should be made, to the extent of the insufficiency.
1096	Trust distributions given for valuable consideration abate with
1097	other distributions of the same class only to the extent of the
1098	excess over the value of the consideration until all others of
1099	the same class are exhausted. Except as provided in this
1100	section, trust distributions abate equally and ratably and
1101	without preference or priority between real and personal
1102	property. When a specified or identified item of property that
1103	has been designated for distribution in the trust instrument or
1104	that is charged with a distribution is sold or taken by the
1105	trustee, other beneficiaries shall contribute according to their
1106	respective interests to the beneficiary whose property has been
1107	sold or taken. Before distribution, the trustee shall determine
1108	the amounts of the respective contributions and such amounts
1109	must be paid or withheld before distribution is made.
1110	(4)  The trustee shall pay the expenses of trust
1111	administration, including compensation of trustees and attorneys
1112	of the trustees, before and in preference to the expenses of the
1113	administration and obligations of the settlor's estate.
1114	736.05055  Notice of trust.--
1115	(1)  Upon the death of a settlor of a trust described in s.
1116	733.707(3), the trustee must file a notice of trust with the
1117	court of the county of the settlor's domicile and the court
1118	having jurisdiction of the settlor's estate.
1119	(2)  The notice of trust must contain the name of the
1120	settlor, the settlor's date of death, the title of the trust, if
1121	any, the date of the trust, and the name and address of the
1122	trustee.
1123	(3)  If the settlor's probate proceeding has been
1124	commenced, the clerk shall notify the trustee in writing of the
1125	date of the commencement of the probate proceeding and the file
1126	number.
1127	(4)  The clerk shall file and index the notice of trust in
1128	the same manner as a caveat unless there exists a probate
1129	proceeding for the settlor's estate, in which case the notice of
1130	trust must be filed in the probate proceeding and the clerk
1131	shall send a copy to the personal representative.
1132	(5)  The clerk shall send a copy of any caveat filed
1133	regarding the settlor to the trustee, and the notice of trust to
1134	any caveator, unless there is a probate proceeding pending and
1135	the personal representative and the trustee are the same.
1136	(6)  Any proceeding affecting the expenses of the
1137	administration or obligations of the settlor's estate prior to
1138	the trustee filing a notice of trust are binding on the trustee.
1139	(7)  The trustee's failure to file the notice of trust does
1140	not affect the trustee's obligation to pay expenses of
1141	administration and obligations of the settlor's estate as
1142	provided in s. 733.607(2).
1143	736.0506  Overdue distribution.--
1144	(1)  As used in this section, the term "mandatory
1145	distribution" means a distribution of income or principal the
1146	trustee is required to make to a beneficiary under the terms of
1147	the trust, including a distribution on termination of the trust.
1148	The term does not include a distribution subject to the exercise
1149	of the trustee's discretion even if:
1150	(a)  The discretion is expressed in the form of a standard
1151	of distribution; or
1152	(b)  The terms of the trust authorizing a distribution
1153	couple language of discretion with language of direction.
1154	(2)  A creditor or assignee of a beneficiary may reach a
1155	mandatory distribution of income or principal, including a
1156	distribution upon termination of the trust, if the trustee has
1157	not made the distribution to the beneficiary within a reasonable
1158	time after the designated distribution date, whether or not a
1159	trust contains a spendthrift provision.
1160	736.0507  Personal obligations of trustee.--Except to the
1161	extent of the trustee's interest in the trust other than as a
1162	trustee, trust property is not subject to personal obligations
1163	of the trustee, even if the trustee becomes insolvent or
1164	bankrupt.
1165	Section 6.  Part VI of chapter 736, Florida Statutes,
1166	consisting of sections 736.0601, 736.0602, 736.0603, and
1167	736.0604, is created to read:
1168
1169	PART VI
1170	REVOCABLE TRUSTS
1171
1172	736.0601  Capacity of settlor of revocable trust.--The
1173	capacity required to create, amend, revoke, or add property to a
1174	revocable trust, or to direct the actions of the trustee of a
1175	revocable trust, is the same as that required to make a will.
1176	736.0602  Revocation or amendment of revocable trust.--
1177	(1)  Unless the terms of a trust expressly provide that the
1178	trust is irrevocable, the settlor may revoke or amend the trust.
1179	This subsection does not apply to a trust created under an
1180	instrument executed before the effective date of this code.
1181	(2)  If a revocable trust is created or funded by more than
1182	one settlor:
1183	(a)  To the extent the trust consists of community
1184	property, the trust may be revoked by either spouse acting alone
1185	but may be amended only by joint action of both spouses.
1186	(b)  To the extent the trust consists of property other
1187	than community property, each settlor may revoke or amend the
1188	trust with regard to the portion of the trust property
1189	attributable to that settlor's contribution.
1190	(c)  Upon the revocation or amendment of the trust by fewer
1191	than all of the settlors, the trustee shall promptly notify the
1192	other settlors of the revocation or amendment.
1193	(3)  Subject to s. 736.0403(2), the settlor may revoke or
1194	amend a revocable trust:
1195	(a)  By substantial compliance with a method provided in
1196	the terms of the trust; or
1197	(b)  If the terms of the trust do not provide a method, by:
1198	1.  A later will or codicil that expressly refers to the
1199	trust or specifically devises property that would otherwise have
1200	passed according to the terms of the trust; or
1201	2.  Any other method manifesting clear and convincing
1202	evidence of the settlor's intent.
1203	(4)  Upon revocation of a revocable trust, the trustee
1204	shall deliver the trust property as the settlor directs.
1205	(5)  A settlor's powers with respect to revocation,
1206	amendment, or distribution of trust property may be exercised by
1207	an agent under a power of attorney only as authorized by s.
1208	709.08.
1209	(6)  A guardian of the property of the settlor may exercise
1210	a settlor's powers with respect to revocation, amendment, or
1211	distribution of trust property only as provided in s. 744.441.
1212	(7)  A trustee who does not know that a trust has been
1213	revoked or amended is not liable for distributions made and
1214	other actions taken on the assumption that the trust had not
1215	been amended or revoked.
1216	736.0603  Settlor's powers; powers of withdrawal.--
1217	(1)  While a trust is revocable, the duties of the trustee
1218	are owed exclusively to the settlor.
1219	(2)  During the period the power may be exercised, the
1220	holder of a power of withdrawal has the rights of a settlor of a
1221	revocable trust under this section to the extent of the property
1222	subject to the power.
1223	736.0604  Limitation on action contesting validity of
1224	revocable trust.--An action to contest the validity of a trust
1225	that was revocable at the settlor's death is barred, if not
1226	commenced within the earlier of:
1227	(1)  The time as provided in chapter 95; or
1228	(2)  Six months after the trustee sent the person a copy of
1229	the trust instrument and a notice informing the person of the
1230	trust's existence, of the trustee's name and address, and of the
1231	time allowed for commencing a proceeding.
1232	Section 7.  Part VII of chapter 736, Florida Statutes,
1233	consisting of sections 736.0701, 736.0702, 736.0703, 736.0704,
1234	736.0705, 736.0706, 736.0707, 736.0708, and 736.0709, is created
1235	to read:
1236
1237	PART VII
1238	OFFICE OF TRUSTEE
1239
1240	736.0701  Accepting or declining trusteeship.--
1241	(1)  Except as otherwise provided in subsection (3), a
1242	person designated as trustee accepts the trusteeship:
1243	(a)  By substantially complying with a method of acceptance
1244	provided in the terms of the trust; or
1245	(b)  If the terms of the trust do not provide a method or
1246	the method provided in the terms is not expressly made
1247	exclusive, by accepting delivery of the trust property,
1248	exercising powers or performing duties as trustee, or otherwise
1249	indicating acceptance of the trusteeship.
1250	(2)  A person designated as trustee who has not accepted
1251	the trusteeship may decline the trusteeship. A designated
1252	trustee who does not accept the trusteeship within a reasonable
1253	time after knowing of the designation is deemed to have declined
1254	the trusteeship.
1255	(3)  A person designated as trustee may, without accepting
1256	the trusteeship:
1257	(a)  Act to preserve the trust property if, within a
1258	reasonable time after acting, the person sends to a qualified
1259	beneficiary a written statement declining the trusteeship.
1260	(b)  Inspect or investigate trust property to determine
1261	potential liability under environmental or other law or for any
1262	other purpose.
1263	736.0702  Trustee's bond.--
1264	(1)  A trustee shall give bond to secure performance of the
1265	trustee's duties only if the court finds that a bond is needed
1266	to protect the interests of the beneficiaries or is required by
1267	the terms of the trust and the court has not dispensed with the
1268	requirement.
1269	(2)  The court may specify the amount of a bond, the
1270	trustee's liabilities under the bond, and whether sureties are
1271	necessary. The court may modify or terminate a bond at any time.
1272	736.0703  Cotrustees.--
1273	(1)  Cotrustees who are unable to reach a unanimous
1274	decision may act by majority decision.
1275	(2)  If a vacancy occurs in a cotrusteeship, the remaining
1276	cotrustees or a majority of the remaining cotrustees may act for
1277	the trust.
1278	(3)  A cotrustee must participate in the performance of a
1279	trustee's function unless the cotrustee is unavailable to
1280	perform the function because of absence, illness,
1281	disqualification under other provision of law, or other
1282	temporary incapacity or the cotrustee has properly delegated the
1283	performance of the function to another cotrustee.
1284	(4)  If a cotrustee is unavailable to perform duties
1285	because of absence, illness, disqualification under other law,
1286	or other temporary incapacity, and prompt action is necessary to
1287	achieve the purposes of the trust or to avoid injury to the
1288	trust property, the remaining cotrustee or a majority of the
1289	remaining cotrustees may act for the trust.
1290	(5)  A cotrustee may not delegate to another cotrustee the
1291	performance of a function the settlor reasonably expected the
1292	cotrustees to perform jointly. A cotrustee may revoke a
1293	delegation previously made.
1294	(6)  Except as otherwise provided in subsection (7), a
1295	cotrustee who does not join in an action of another cotrustee is
1296	not liable for the action.
1297	(7)  Each cotrustee shall exercise reasonable care to:
1298	(a)  Prevent a cotrustee from committing a breach of trust.
1299	(b)  Compel a cotrustee to redress a breach of trust.
1300	(8)  A dissenting cotrustee who joins in an action at the
1301	direction of the majority of the cotrustees and who notifies any
1302	cotrustee of the dissent at or before the time of the action is
1303	not liable for the action.
1304	736.0704  Vacancy in trusteeship; appointment of
1305	successor.--
1306	(1)  A vacancy in a trusteeship occurs if:
1307	(a)  A person designated as trustee declines the
1308	trusteeship;
1309	(b)  A person designated as trustee cannot be identified or
1310	does not exist;
1311	(c)  A trustee resigns;
1312	(d)  A trustee is disqualified or removed;
1313	(e)  A trustee dies; or
1314	(f)  A trustee is adjudicated to be incapacitated.
1315	(2)  If one or more cotrustees remain in office, a vacancy
1316	in a trusteeship need not be filled. A vacancy in a trusteeship
1317	must be filled if the trust has no remaining trustee.
1318	(3)  A vacancy in a trusteeship of a noncharitable trust
1319	that is required to be filled must be filled in the following
1320	order of priority:
1321	(a)  By a person named or designated pursuant to the terms
1322	of the trust to act as successor trustee.
1323	(b)  By a person appointed by unanimous agreement of the
1324	qualified beneficiaries.
1325	(c)  By a person appointed by the court.
1326	(4)  A vacancy in a trusteeship of a charitable trust that
1327	is required to be filled must be filled in the following order
1328	of priority:
1329	(a)  By a person named or designated pursuant to the terms
1330	of the trust to act as successor trustee.
1331	(b)  By a person selected by unanimous agreement of the
1332	charitable organizations expressly designated to receive
1333	distributions under the terms of the trust.
1334	(c)  By a person appointed by the court.
1335	(5)  The court may appoint an additional trustee or special
1336	fiduciary whenever the court considers the appointment necessary
1337	for the administration of the trust, whether or not a vacancy in
1338	a trusteeship exists or is required to be filled.
1339	736.0705  Resignation of trustee.--
1340	(1)  A trustee may resign:
1341	(a)  Upon at least 30 days' notice to the qualified
1342	beneficiaries, the settlor, if living, and all cotrustees; or
1343	(b)  With the approval of the court.
1344	(2)  In approving a resignation, the court may issue orders
1345	and impose conditions reasonably necessary for the protection of
1346	the trust property.
1347	(3)  Any liability of a resigning trustee or of any
1348	sureties on the trustee's bond for acts or omissions of the
1349	trustee is not discharged or affected by the trustee's
1350	resignation.
1351	736.0706  Removal of trustee.--
1352	(1)  The settlor, a cotrustee, or a beneficiary may request
1353	the court to remove a trustee or a trustee may be removed by the
1354	court on the court's own initiative.
1355	(2)  The court may remove a trustee if:
1356	(a)  The trustee has committed a serious breach of trust;
1357	(b)  The lack of cooperation among cotrustees substantially
1358	impairs the administration of the trust;
1359	(c)  Due to the unfitness, unwillingness, or persistent
1360	failure of the trustee to administer the trust effectively, the
1361	court determines that removal of the trustee best serves the
1362	interests of the beneficiaries; or
1363	(d)  There has been a substantial change of circumstances
1364	or removal is requested by all of the qualified beneficiaries,
1365	the court finds that removal of the trustee best serves the
1366	interests of all of the beneficiaries and is not inconsistent
1367	with a material purpose of the trust, and a suitable cotrustee
1368	or successor trustee is available.
1369	(3)  Pending a final decision on a request to remove a
1370	trustee, or in lieu of or in addition to removing a trustee, the
1371	court may order such appropriate relief under s. 736.1001(2) as
1372	may be necessary to protect the trust property or the interests
1373	of the beneficiaries.
1374	736.0707  Delivery of property by former trustee.--
1375	(1)  Unless a cotrustee remains in office or the court
1376	otherwise orders and until the trust property is delivered to a
1377	successor trustee or other person entitled to the property, a
1378	trustee who has resigned or been removed has the duties of a
1379	trustee and the powers necessary to protect the trust property.
1380	(2)  A trustee who has resigned or been removed shall
1381	within a reasonable time deliver the trust property within the
1382	trustee's possession to the cotrustee, successor trustee, or
1383	other person entitled to the property, subject to the right of
1384	the trustee to retain a reasonable reserve for the payment of
1385	debts, expenses, and taxes. The provisions of this subsection
1386	are in addition to and are not in derogation of the rights of a
1387	removed or resigning trustee under the common law.
1388	736.0708  Compensation of trustee.--
1389	(1)  If the terms of a trust do not specify the trustee's
1390	compensation, a trustee is entitled to compensation that is
1391	reasonable under the circumstances.
1392	(2)  If the terms of a trust specify the trustee's
1393	compensation, the trustee is entitled to be compensated as
1394	specified but the court may allow more or less compensation if:
1395	(a)  The duties of the trustee are substantially different
1396	from those contemplated when the trust was created; or
1397	(b)  The compensation specified by the terms of the trust
1398	would be unreasonably low or high.
1399	(3)  If the trustee has rendered other services in
1400	connection with the administration of the trust, the trustee
1401	shall also be allowed reasonable compensation for the other
1402	services rendered in addition to reasonable compensation as
1403	trustee.
1404	736.0709  Reimbursement of expenses.--
1405	(1)  A trustee is entitled to be reimbursed out of the
1406	trust property, with interest as appropriate, for reasonable
1407	expenses that were properly incurred in the administration of
1408	the trust.
1409	(2)  An advance by the trustee of money for the protection
1410	of the trust gives rise to a lien against trust property to
1411	secure reimbursement with reasonable interest.
1412	Section 8.  Part VIII of chapter 736, Florida Statutes,
1413	consisting of sections 736.0801, 736.0802, 736.0803, 736.0804,
1414	736.0805, 736.0806, 736.0807, 736.0808, 736.0809, 736.0810,
1415	736.08105, 736.0811, 736.0812, 736.08125, 736.0813, 736.08135,
1416	736.0814, 736.08147, 736.0815, 736.0816, 736.08163, 736.08165,
1417	and 736.0817, is created to read:
1418
1419	PART VIII
1420	DUTIES AND POWERS OF TRUSTEE
1421
1422	736.0801  Duty to administer trust.--Upon acceptance of a
1423	trusteeship, the trustee shall administer the trust in good
1424	faith, in accordance with its terms and purposes and the
1425	interests of the beneficiaries, and in accordance with this
1426	code.
1427	736.0802  Duty of loyalty.--
1428	(1)  As between a trustee and the beneficiaries, a trustee
1429	shall administer the trust solely in the interests of the
1430	beneficiaries.
1431	(2)  Subject to the rights of persons dealing with or
1432	assisting the trustee as provided in s. 736.1016, a sale,
1433	encumbrance, or other transaction involving the investment or
1434	management of trust property entered into by the trustee for the
1435	trustee's own personal account or which is otherwise affected by
1436	a conflict between the trustee's fiduciary and personal
1437	interests is voidable by a beneficiary affected by the
1438	transaction unless:
1439	(a)  The transaction was authorized by the terms of the
1440	trust;
1441	(b)  The transaction was approved by the court;
1442	(c)  The beneficiary did not commence a judicial proceeding
1443	within the time allowed by s. 736.1008;
1444	(d)  The beneficiary consented to the trustee's conduct,
1445	ratified the transaction, or released the trustee in compliance
1446	with s. 736.1012;
1447	(e)  The transaction involves a contract entered into or
1448	claim acquired by the trustee when that person had not become or
1449	contemplated becoming trustee; or
1450	(f)  The transaction was consented to in writing by a
1451	settlor of the trust while the trust was revocable.
1452	(3)  A sale, encumbrance, or other transaction involving
1453	the investment or management of trust property is presumed to be
1454	affected by a conflict between personal and fiduciary interests
1455	if the sale, encumbrance, or other transaction is entered into
1456	by the trustee with:
1457	(a)  The trustee's spouse;
1458	(b)  The trustee's descendants, siblings, parents, or their
1459	spouses;
1460	(c)  An officer, director, employee, agent, or attorney of
1461	the trustee; or
1462	(d)  A corporation or other person or enterprise in which
1463	the trustee, or a person that owns a significant interest in the
1464	trustee, has an interest that might affect the trustee's best
1465	judgment.
1466	(4)  A transaction not concerning trust property in which
1467	the trustee engages in the trustee's individual capacity
1468	involves a conflict between personal and fiduciary interests if
1469	the transaction concerns an opportunity properly belonging to
1470	the trust.
1471	(5)  An investment by a trustee in securities of an
1472	investment company or investment trust to which the trustee, or
1473	an affiliate of the trustee, provides services in a capacity
1474	other than as trustee is not presumed to be affected by a
1475	conflict between personal and fiduciary interests if the
1476	investment otherwise complies with chapter 518. In addition to
1477	the trustee's compensation for acting as trustee, the trustee
1478	may be compensated by the investment company or investment trust
1479	for providing those services out of fees charged to the trust.
1480	If the trustee receives compensation from the investment company
1481	or investment trust for providing those services, the trustee
1482	shall notify the qualified beneficiaries at least annually.
1483	(6)  In voting shares of stock or in exercising powers of
1484	control over similar interests in other forms of enterprise, the
1485	trustee shall act in the best interests of the beneficiaries. If
1486	the trust is the sole owner of a corporation or other form of
1487	enterprise, the trustee shall elect or appoint directors or
1488	other managers who will manage the corporation or enterprise in
1489	the best interests of the beneficiaries.
1490	(7)  This section does not preclude the following
1491	transactions, if fair to the beneficiaries:
1492	(a)  An agreement between a trustee and a beneficiary
1493	relating to the appointment or compensation of the trustee;
1494	(b)  A payment of reasonable compensation to the trustee;
1495	(c)  A transaction between a trust and another trust, the
1496	decedent's estate, or a guardian of the property of which the
1497	trustee is a fiduciary or in which a beneficiary has an
1498	interest;
1499	(d)  A deposit of trust money in a regulated financial-
1500	service institution operated by the trustee; or
1501	(e)  An advance by the trustee of money for the protection
1502	of the trust.
1503	(8)  This section does not preclude the employment of
1504	persons, including, but not limited to, attorneys, accountants,
1505	investment advisers, or agents, even if they are the trustee, an
1506	affiliate of the trustee, or otherwise associated with the
1507	trustee, to advise or assist the trustee in the exercise of any
1508	of the trustee's powers and to pay reasonable compensation and
1509	costs incurred in connection with such employment from the
1510	assets of the trust; to act without independent investigation on
1511	their recommendations; and, instead of acting personally, to
1512	employ one or more agents to perform any act of administration,
1513	whether or not discretionary.
1514	(9)  The court may appoint a special fiduciary to act with
1515	respect to any proposed transaction that might violate this
1516	section if entered into by the trustee.
1517	(10)  Payment of costs or attorney's fees incurred in any
1518	trust proceeding from the assets of the trust may be made by the
1519	trustee without the approval of any person and without court
1520	authorization, except that court authorization shall be required
1521	if an action has been filed or defense asserted against the
1522	trustee based upon a breach of trust. Court authorization is not
1523	required if the action or defense is later withdrawn or
1524	dismissed by the party that is alleging a breach of trust or
1525	resolved without a determination by the court that the trustee
1526	has committed a breach of trust.
1527	736.0803  Impartiality.--If a trust has two or more
1528	beneficiaries, the trustee shall act impartially in
1529	administering the trust property, giving due regard to the
1530	beneficiaries' respective interests.
1531	736.0804  Prudent administration.--A trustee shall
1532	administer the trust as a prudent person would, by considering
1533	the purposes, terms, distribution requirements, and other
1534	circumstances of the trust. In satisfying this standard, the
1535	trustee shall exercise reasonable care, skill, and caution.
1536	736.0805  Expenses of administration.--In administering a
1537	trust, the trustee shall only incur expenses that are reasonable
1538	in relation to the trust property, the purposes of the trust,
1539	and the skills of the trustee.
1540	736.0806  Trustee's skills.--A trustee who has special
1541	skills or expertise, or is named trustee in reliance on the
1542	trustee's representation that the trustee has special skills or
1543	expertise, shall use those special skills or expertise.
1544	736.0807  Delegation by trustee.--
1545	(1)  A trustee may delegate duties and powers that a
1546	prudent trustee of comparable skills could properly delegate
1547	under the circumstances. The trustee shall exercise reasonable
1548	care, skill, and caution in:
1549	(a)  Selecting an agent.
1550	(b)  Establishing the scope and terms of the delegation,
1551	consistent with the purposes and terms of the trust.
1552	(c)  Reviewing the agent's actions periodically, in order
1553	to monitor the agent's performance and compliance with the terms
1554	of the delegation.
1555	(2)  In performing a delegated function, an agent owes a
1556	duty to the trust to exercise reasonable care to comply with the
1557	terms of the delegation.
1558	(3)  A trustee who complies with subsection (1) is not
1559	liable to the beneficiaries or to the trust for an action of the
1560	agent to whom the function was delegated.
1561	(4)  By accepting a delegation of powers or duties from the
1562	trustee of a trust that is subject to the law of this state, an
1563	agent submits to the jurisdiction of the courts of this state.
1564	736.0808  Powers to direct.--
1565	(1)  Subject to ss. 736.0403(2) and 736.0602(3)(a), the
1566	trustee may follow a direction of the settlor that is contrary
1567	to the terms of the trust while a trust is revocable.
1568	(2)  If the terms of a trust confer on a person other than
1569	the settlor of a revocable trust, the power to direct certain
1570	actions of the trustee, the trustee shall act in accordance with
1571	an exercise of the power unless the attempted exercise is
1572	manifestly contrary to the terms of the trust or the trustee
1573	knows the attempted exercise would constitute a serious breach
1574	of a fiduciary duty that the person holding the power owes to
1575	the beneficiaries of the trust.
1576	(3)  The terms of a trust may confer on a trustee or other
1577	person a power to direct the modification or termination of the
1578	trust.
1579	(4)  A person, other than a beneficiary, who holds a power
1580	to direct is presumptively a fiduciary who, as such, is required
1581	to act in good faith with regard to the purposes of the trust
1582	and the interests of the beneficiaries. The holder of a power to
1583	direct is liable for any loss that results from breach of a
1584	fiduciary duty.
1585	736.0809  Control and protection of trust property.--A
1586	trustee shall take reasonable steps to take control of and
1587	protect the trust property.
1588	736.0810  Recordkeeping and identification of trust
1589	property.--
1590	(1)  A trustee shall keep clear, distinct, and accurate
1591	records of the administration of the trust.
1592	(2)  A trustee shall keep trust property separate from the
1593	trustee's own property.
1594	(3)  Except as otherwise provided in subsection (4), a
1595	trustee shall cause the trust property to be designated so that
1596	the interest of the trust, to the extent feasible, appears in
1597	records maintained by a party other than a trustee or
1598	beneficiary.
1599	(4)  If the trustee maintains records clearly indicating
1600	the respective interests, a trustee may invest as a whole the
1601	property of two or more separate trusts.
1602	736.08105  Duty to ascertain marketable title of trust real
1603	property.--A trustee holding title to real property received
1604	from a settlor or estate shall not be required to obtain title
1605	insurance or proof of marketable title until a marketable title
1606	is required for a sale or conveyance of the real property.
1607	736.0811  Enforcement and defense of claims.--A trustee
1608	shall take reasonable steps to enforce claims of the trust and
1609	to defend claims against the trust.
1610	736.0812  Collecting trust property.--A trustee shall take
1611	reasonable steps to compel a former trustee or other person to
1612	deliver trust property to the trustee and, except as provided in
1613	s. 736.08125, to redress a breach of trust known to the trustee
1614	to have been committed by a former trustee.
1615	736.08125  Protection of successor trustees.--
1616	(1)  A successor trustee is not personally liable for
1617	actions taken by any prior trustee, nor does any successor
1618	trustee have a duty to institute any proceeding against any
1619	prior trustee, or file any claim against any prior trustee's
1620	estate, for any of the prior trustee's actions as trustee under
1621	any of the following circumstances:
1622	(a)  As to a successor trustee who succeeds a trustee who
1623	was also the settlor of a trust that was revocable during the
1624	time that the settlor served as trustee;
1625	(b)  As to any beneficiary who has waived any accounting
1626	required by s. 736.0813, but only as to the periods included in
1627	the waiver;
1628	(c)  As to any beneficiary who has released the successor
1629	trustee from the duty to institute any proceeding or file any
1630	claim;
1631	(d)  As to any person who is not an eligible beneficiary;
1632	or
1633	(e)  As to any eligible beneficiary:
1634	1.  If a supermajority of the eligible beneficiaries have
1635	released the successor trustee;
1636	2.  If the eligible beneficiary has not delivered a written
1637	request to the successor trustee to institute an action or file
1638	a claim against the prior trustee within 6 months after the date
1639	of the successor trustee's acceptance of the trust, if the
1640	successor trustee has notified the eligible beneficiary in
1641	writing of acceptance by the successor trustee in accordance
1642	with 736.0813(1)(a) and that writing advises the beneficiary
1643	that, unless the beneficiary delivers the written request within
1644	6 months after the date of acceptance, the right to proceed
1645	against the successor trustee will be barred pursuant to this
1646	section; or
1647	3.  For any action or claim that the eligible beneficiary
1648	is barred from bringing against the prior trustee.
1649	(2)  For the purposes of this section, the term:
1650	(a)  "Eligible beneficiaries" means:
1651	1.  At the time the determination is made, if there are one
1652	or more beneficiaries as described in s. 736.0103(14)(c), the
1653	beneficiaries described in s. 736.0103(14)(a) and (c); or
1654	2.  If there is no beneficiary as described in s.
1655	736.0103(14)(c), the beneficiaries described in s.
1656	736.0103(14)(a) and (b).
1657	(b)  "Supermajority of eligible beneficiaries" means at
1658	least two-thirds in interest of the eligible beneficiaries if
1659	the interests of the eligible beneficiaries are reasonably
1660	ascertainable, otherwise, at least two-thirds in number of the
1661	eligible beneficiaries.
1662	(3)  Nothing in this section affects any liability of the
1663	prior trustee or the right of the successor trustee or any
1664	beneficiary to pursue an action or claim against the prior
1665	trustee.
1666	736.0813  Duty to inform and account.--The trustee shall
1667	keep the qualified beneficiaries of the trust reasonably
1668	informed of the trust and its administration.
1669	(1)  The trustee's duty to inform and account includes, but
1670	is not limited to, the following:
1671	(a)  Within 60 days after acceptance of the trust, the
1672	trustee shall give notice to the qualified beneficiaries of the
1673	acceptance of the trust and the full name and address of the
1674	trustee.
1675	(b)  Within 60 days after the date the trustee acquires
1676	knowledge of the creation of an irrevocable trust, or the date
1677	the trustee acquires knowledge that a formerly revocable trust
1678	has become irrevocable, whether by the death of the settlor or
1679	otherwise, the trustee shall give notice to the qualified
1680	beneficiaries of the trust's existence, the identity of the
1681	settlor or settlors, the right to request a copy of the trust
1682	instrument, and the right to accountings under this section.
1683	(c)  Upon reasonable request, the trustee shall provide a
1684	qualified beneficiary with a complete copy of the trust
1685	instrument.
1686	(d)  A trustee of an irrevocable trust shall provide a
1687	trust accounting, as set forth in s. 736.08135, to each
1688	qualified beneficiary annually and on termination of the trust
1689	or on change of the trustee.
1690	(e)  Upon reasonable request, the trustee shall provide a
1691	qualified beneficiary with relevant information about the assets
1692	and liabilities of the trust and the particulars relating to
1693	administration.
1694
1695	Paragraphs (a) and (b) do not apply to an irrevocable trust
1696	created before the effective date of this code, or to a
1697	revocable trust that becomes irrevocable before the effective
1698	date of this code. Paragraph (a) does not apply to a trustee who
1699	accepts a trusteeship before the effective date of this code.
1700	(2)  A qualified beneficiary may waive the trustee's duty
1701	to account under paragraph (1)(d). A qualified beneficiary may
1702	withdraw a waiver previously given. Waivers and withdrawals of
1703	prior waivers under this subsection must be in writing.
1704	Withdrawals of prior waivers are effective only with respect to
1705	accountings for future periods.
1706	(3)  The representation provisions of part III apply with
1707	respect to all rights of a qualified beneficiary under this
1708	section.
1709	(4)  As provided in s. 736.0603(1), the trustee's duties
1710	under this section extend only to the settlor while a trust is
1711	revocable.
1712	(5)  This section applies to trust accountings rendered for
1713	accounting periods beginning on or after January 1, 2008.
1714	736.08135  Trust accountings.--
1715	(1)  A trust accounting must be a reasonably understandable
1716	report from the date of the last accounting or, if none, from
1717	the date on which the trustee became accountable, that
1718	adequately discloses the information required in subsection (2).
1719	(2)(a)  The accounting must begin with a statement
1720	identifying the trust, the trustee furnishing the accounting,
1721	and the time period covered by the accounting.
1722	(b)  The accounting must show all cash and property
1723	transactions and all significant transactions affecting
1724	administration during the accounting period, including
1725	compensation paid to the trustee and the trustee's agents. Gains
1726	and losses realized during the accounting period and all
1727	receipts and disbursements must be shown.
1728	(c)  To the extent feasible, the accounting must identify
1729	and value trust assets on hand at the close of the accounting
1730	period. For each asset or class of assets reasonably capable of
1731	valuation, the accounting shall contain two values, the asset
1732	acquisition value or carrying value and the estimated current
1733	value. The accounting must identify each known noncontingent
1734	liability with an estimated current amount of the liability if
1735	known.
1736	(d)  To the extent feasible, the accounting must show
1737	significant transactions that do not affect the amount for which
1738	the trustee is accountable, including name changes in investment
1739	holdings, adjustments to carrying value, a change of custodial
1740	institutions, and stock splits.
1741	(e)  The accounting must reflect the allocation of
1742	receipts, disbursements, accruals, or allowances between income
1743	and principal when the allocation affects the interest of any
1744	beneficiary of the trust.
1745	(f)  The trustee shall include in the final accounting a
1746	plan of distribution for any undistributed assets shown on the
1747	final accounting.
1748	(3)  This section applies to all trust accountings rendered
1749	for any accounting periods beginning on or after January 1,
1750	2003.
1751	736.0814  Discretionary powers; tax savings.--
1752	(1)  Notwithstanding the breadth of discretion granted to a
1753	trustee in the terms of the trust, including the use of such
1754	terms as "absolute," "sole," or "uncontrolled," the trustee
1755	shall exercise a discretionary power in good faith and in
1756	accordance with the terms and purposes of the trust and the
1757	interests of the beneficiaries. A court shall not determine that
1758	a trustee abused its discretion merely because the court would
1759	have exercised the discretion in a different manner or would not
1760	have exercised the discretion.
1761	(2)  Subject to subsection (3) and unless the terms of the
1762	trust expressly indicate that a rule in this subsection does not
1763	apply, a person who is a beneficiary and a trustee may not:
1764	(a)  Make discretionary distributions of either principal
1765	or income to or for the benefit of that trustee, other than
1766	distributions subject to an ascertainable standard;
1767	(b)  Make discretionary allocations of receipts or expenses
1768	as between principal and income, unless the trustee acts in a
1769	fiduciary capacity whereby the trustee has no power to enlarge
1770	or shift any beneficial interest except as an incidental
1771	consequence of the discharge of the trustee's fiduciary duties;
1772	(c)  Make discretionary distributions of either principal
1773	or income to satisfy any of the trustee's legal support
1774	obligations; or
1775	(d)  Exercise any other power, including, but not limited
1776	to, the right to remove or to replace any trustee, so as to
1777	cause the powers enumerated in paragraph (a), paragraph (b), or
1778	paragraph (c) to be exercised on behalf of, or for the benefit
1779	of, a beneficiary who is also a trustee.
1780	(3)  Subsection (2) does not apply to:
1781	(a)  A power held by the settlor of the trust;
1782	(b)  A power held by the settlor's spouse who is the
1783	trustee of a trust for which a marital deduction, as defined in
1784	s. 2056(a) or s. 2523(a) of the Internal Revenue Code of 1986,
1785	as amended, was previously allowed;
1786	(c)  Any trust during any period that the trust may be
1787	revoked or amended by its settlor; or
1788	(d)  A trust if contributions to the trust qualify for the
1789	annual exclusion under s. 2503(c) of the Internal Revenue Code
1790	of 1986, as amended.
1791	(4)  A power whose exercise is limited or prohibited by
1792	subsection (2) may be exercised by the remaining trustees whose
1793	exercise of the power is not so limited or prohibited. If there
1794	is no trustee qualified to exercise the power, on petition by
1795	any qualified beneficiary, the court may appoint an independent
1796	trustee with authority to exercise the power.
1797	(5)  A person who has the right to remove or to replace a
1798	trustee does not possess nor may that person be deemed to
1799	possess, by virtue of having that right, the powers of the
1800	trustee that is subject to removal or to replacement.
1801	736.08147  Duty to distribute trust income.--If a will or
1802	trust instrument granting income to the settlor's or testator's
1803	spouse for life is silent as to the time of distribution of
1804	income and the frequency of distributions, the trustee shall
1805	distribute all net income, as defined in chapter 738, to the
1806	spouse no less frequently than annually. This provision shall
1807	apply to any trust established before, on, or after July 1,
1808	2007, unless the trust instrument expressly directs or permits
1809	net income to be distributed less frequently than annually.
1810	736.0815  General powers of trustee.--
1811	(1)  A trustee, without authorization by the court, may,
1812	except as limited or restricted by this code, exercise:
1813	(a)  Powers conferred by the terms of the trust.
1814	(b)  Except as limited by the terms of the trust:
1815	1.  All powers over the trust property that an unmarried
1816	competent owner has over individually owned property.
1817	2.  Any other powers appropriate to achieve the proper
1818	investment, management, and distribution of the trust property.
1819	3.  Any other powers conferred by this code.
1820	(2)  The exercise of a power is subject to the fiduciary
1821	duties prescribed by this code.
1822	736.0816  Specific powers of trustee.--Except as limited or
1823	restricted by this code, a trustee may:
1824	(1)  Collect trust property and accept or reject additions
1825	to the trust property from a settlor, including an asset in
1826	which the trustee is personally interested, and hold property in
1827	the name of a nominee or in other form without disclosure of the
1828	trust so that title to the property may pass by delivery but the
1829	trustee is liable for any act of the nominee in connection with
1830	the property so held.
1831	(2)  Acquire or sell property, for cash or on credit, at
1832	public or private sale.
1833	(3)  Acquire an undivided interest in a trust asset,
1834	including, but not limited to, a money market mutual fund,
1835	mutual fund, or common trust fund, in which asset the trustee
1836	holds an undivided interest in any trust capacity, including any
1837	money market or other mutual fund from which the trustee or any
1838	affiliate or associate of the trustee is entitled to receive
1839	reasonable compensation for providing necessary services as an
1840	investment adviser, portfolio manager, or servicing agent. A
1841	trustee or affiliate or associate of the trustee may receive
1842	compensation for such services in addition to fees received for
1843	administering the trust provided such compensation is fully
1844	disclosed in writing to all qualified beneficiaries.
1845	(4)  Exchange, partition, or otherwise change the character
1846	of trust property.
1847	(5)  Deposit trust money in an account in a regulated
1848	financial-service institution.
1849	(6)  Borrow money, with or without security, and mortgage
1850	or pledge trust property for a period within or extending beyond
1851	the duration of the trust and advance money for the protection
1852	of the trust.
1853	(7)  With respect to an interest in a proprietorship,
1854	partnership, limited liability company, business trust,
1855	corporation, or other form of business or enterprise, continue
1856	the business or other enterprise and take any action that may be
1857	taken by shareholders, members, or property owners, including,
1858	but not limited to, merging, dissolving, or otherwise changing
1859	the form of business organization or contributing additional
1860	capital.
1861	(8)  With respect to stocks or other securities, exercise
1862	the rights of an absolute owner, including, but not limited to,
1863	the right to:
1864	(a)  Vote, or give proxies to vote, with or without power
1865	of substitution, or enter into or continue a voting trust
1866	agreement.
1867	(b)  Hold a security in the name of a nominee or in other
1868	form without disclosure of the trust so that title may pass by
1869	delivery.
1870	(c)  Pay calls, assessments, and other sums chargeable or
1871	accruing against the securities, and sell or exercise stock
1872	subscription or conversion rights.
1873	(d)  Deposit the securities with a depositary or other
1874	regulated financial-service institution.
1875	(9)  With respect to an interest in real property,
1876	construct, or make ordinary or extraordinary repairs to,
1877	alterations to, or improvements in, buildings or other
1878	structures, demolish improvements, raze existing or erect new
1879	party walls or buildings, subdivide or develop land, dedicate
1880	land to public use or grant public or private easements, and
1881	make or vacate plats and adjust boundaries.
1882	(10)  Enter into a lease for any purpose as lessor or
1883	lessee, including a lease or other arrangement for exploration
1884	and removal of natural resources, with or without the option to
1885	purchase or renew, for a period within or extending beyond the
1886	duration of the trust.
1887	(11)  Grant an option involving a sale, lease, or other
1888	disposition of trust property or acquire an option for the
1889	acquisition of property, including an option exercisable beyond
1890	the duration of the trust, and exercise an option so acquired.
1891	(12)  Insure the property of the trust against damage or
1892	loss and insure the trustee, trustee's agents, and beneficiaries
1893	against liability arising from the administration of the trust.
1894	(13)  Abandon or decline to administer property of no value
1895	or of insufficient value to justify the collection or continued
1896	administration of such property.
1897	(14)  Pay or contest any claim, settle a claim by or
1898	against the trust, and release, in whole or in part, a claim
1899	belonging to the trust.
1900	(15)  Pay taxes, assessments, compensation of the trustee
1901	and of employees and agents of the trust, and other expenses
1902	incurred in the administration of the trust.
1903	(16)  Allocate items of income or expense to trust income
1904	or principal, as provided by law.
1905	(17)  Exercise elections with respect to federal, state,
1906	and local taxes.
1907	(18)  Select a mode of payment under any employee benefit
1908	or retirement plan, annuity, or life insurance payable to the
1909	trustee, exercise rights under such plan, annuity, or insurance,
1910	including exercise of the right to indemnification for expenses
1911	and against liabilities, and take appropriate action to collect
1912	the proceeds.
1913	(19)  Make loans out of trust property, including, but not
1914	limited to, loans to a beneficiary on terms and conditions that
1915	are fair and reasonable under the circumstances, and the trustee
1916	has a lien on future distributions for repayment of those loans.
1917	(20)  Employ persons, including, but not limited to,
1918	attorneys, accountants, investment advisers, or agents, even if
1919	they are the trustee, an affiliate of the trustee, or otherwise
1920	associated with the trustee, to advise or assist the trustee in
1921	the exercise of any of the trustee's powers and pay reasonable
1922	compensation and costs incurred in connection with such
1923	employment from the assets of the trust and act without
1924	independent investigation on the recommendations of such
1925	persons.
1926	(21)  Pay an amount distributable to a beneficiary who is
1927	under a legal disability or who the trustee reasonably believes
1928	is incapacitated, by paying the amount directly to the
1929	beneficiary or applying the amount for the beneficiary's
1930	benefit, or by:
1931	(a)  Paying the amount to the beneficiary's guardian of the
1932	property or, if the beneficiary does not have a guardian of the
1933	property, the beneficiary's guardian of the person;
1934	(b)  Paying the amount to the beneficiary's custodian under
1935	a Uniform Transfers to Minors Act or custodial trustee under a
1936	Uniform Custodial Trust Act, and, for that purpose, creating a
1937	custodianship or custodial trust;
1938	(c)  Paying the amount to an adult relative or other person
1939	having legal or physical care or custody of the beneficiary, to
1940	be expended on the beneficiary's behalf, if the trustee does not
1941	know of a guardian of the property, guardian of the person,
1942	custodian, or custodial trustee; or
1943	(d)  Managing the amount as a separate fund on the
1944	beneficiary's behalf, subject to the beneficiary's continuing
1945	right to withdraw the distribution.
1946	(22)  On distribution of trust property or the division or
1947	termination of a trust, make distributions in divided or
1948	undivided interests, allocate particular assets in proportionate
1949	or disproportionate shares, value the trust property for those
1950	purposes, and adjust for resulting differences in valuation.
1951	(23)  Prosecute or defend, including appeals, an action,
1952	claim, or judicial proceeding in any jurisdiction to protect
1953	trust property or the trustee in the performance of the
1954	trustee's duties.
1955	(24)  Sign and deliver contracts and other instruments that
1956	are useful to achieve or facilitate the exercise of the
1957	trustee's powers.
1958	(25)  On termination of the trust, exercise the powers
1959	appropriate to wind up the administration of the trust and
1960	distribute the trust property to the persons entitled to the
1961	property, subject to the right of the trustee to retain a
1962	reasonable reserve for the payment of debts, expenses, and
1963	taxes.
1964	736.08163  Powers of trustees relating to environmental or
1965	human health laws or to trust property contaminated with
1966	hazardous or toxic substances; liability.--
1967	(1)  From the creation of a trust until final distribution
1968	of the assets from the trust, the trustee has, without court
1969	authorization, the powers specified in subsection (2).
1970	(2)  Unless otherwise provided in the trust instrument, a
1971	trustee has the power, acting reasonably, to:
1972	(a)  Inspect or investigate, or cause to be inspected or
1973	investigated, property held by the trustee, including interests
1974	in sole proprietorships, partnerships, or corporations and any
1975	assets owned by any such business entity for the purpose of
1976	determining compliance with an environmental law affecting that
1977	property or to respond to an actual or threatened violation of
1978	an environmental law affecting that property;
1979	(b)  Take, on behalf of the trust, any action necessary to
1980	prevent, abate, or otherwise remedy an actual or potential
1981	violation of an environmental law affecting property held by the
1982	trustee, before or after initiation of an enforcement action by
1983	a governmental body;
1984	(c)  Refuse to accept property in trust if the trustee
1985	determines that any property to be donated or conveyed to the
1986	trustee is contaminated with a hazardous substance or is being
1987	used or has been used for an activity directly or indirectly
1988	involving a hazardous substance, which circumstance could result
1989	in liability to the trust or trustee or otherwise impair the
1990	value of the assets to be held;
1991	(d)  Settle or compromise at any time any claim against the
1992	trust or trustee that may be asserted by a governmental body or
1993	private party that involves the alleged violation of an
1994	environmental law affecting property of any trust over which the
1995	trustee has responsibility;
1996	(e)  Disclaim any power granted by any document, law, or
1997	rule of law that, in the sole judgment of the trustee, may cause
1998	the trustee to incur personal liability, or the trust to incur
1999	liability, under any environmental law;
2000	(f)  Decline to serve as a trustee, or having undertaken to
2001	serve as a trustee, resign at any time, if the trustee believes
2002	there is or may be a conflict of interest in its fiduciary
2003	capacity and in its individual capacity because of potential
2004	claims or liabilities that may be asserted against the trustee
2005	on behalf of the trust by reason of the type or condition of the
2006	assets held; or
2007	(g)  Charge against the income and principal of the trust
2008	the cost of any inspection, investigation, review, abatement,
2009	response, cleanup, or remedial action that this section
2010	authorizes the trustee to take and, if the trust terminates or
2011	closes or the trust property is transferred to another trustee,
2012	hold assets sufficient to cover the cost of cleaning up any
2013	known environmental problem.
2014	(3)  A trustee is not personally liable to any beneficiary
2015	or any other person for a decrease in value of assets in a trust
2016	by reason of the trustee's compliance or efforts to comply with
2017	an environmental law, specifically including any reporting
2018	requirement under that law.
2019	(4)  A trustee that acquires ownership or control of a
2020	vessel or other property, without having owned, operated, or
2021	materially participated in the management of that vessel or
2022	property before assuming ownership or control as trustee, is not
2023	considered an owner or operator for purposes of liability under
2024	chapter 376, chapter 403, or any other environmental law. A
2025	trustee that willfully, knowingly, or recklessly causes or
2026	exacerbates a release or threatened release of a hazardous
2027	substance is personally liable for the cost of the response, to
2028	the extent that the release or threatened release is
2029	attributable to the trustee's activities. This subsection does
2030	not preclude the filing of claims against the assets that
2031	constitute the trust held by the trustee or the filing of
2032	actions against the trustee in its representative capacity and
2033	in any such action, an award or judgment against the trustee
2034	must be satisfied only from the assets of the trust.
2035	(5)  The acceptance by the trustee of the property or a
2036	failure by the trustee to inspect or investigate the property
2037	does not create any inference as to whether there is liability
2038	under an environmental law with respect to that property.
2039	(6)  For the purposes of this section, the term "hazardous
2040	substance" means a substance defined as hazardous or toxic, or
2041	any contaminant, pollutant, or constituent thereof, or otherwise
2042	regulated, by an environmental law.
2043	(7)  This section does not apply to any trust created under
2044	a document executed before July 1, 1995, unless the trust is
2045	amendable and the settlor amends the trust at any time to
2046	incorporate the provisions of this section.
2047	736.08165  Administration pending outcome of contest or
2048	other proceeding.--
2049	(1)  Pending the outcome of a proceeding filed to determine
2050	the validity of all or part of a trust or the beneficiaries of
2051	all or part of a trust, the trustee shall proceed with the
2052	administration of the trust as if no proceeding had been
2053	commenced, except no action may be taken and no distribution may
2054	be made to a beneficiary in contravention of the rights of those
2055	persons who may be affected by the outcome of the proceeding.
2056	(2)  Upon motion of a party and after notice to interested
2057	persons, a court, on good cause shown, may make an exception to
2058	the prohibition under subsection (1) and authorize the trustee
2059	to act or to distribute trust assets to a beneficiary subject to
2060	any conditions the court, in the court's discretion, may impose,
2061	including the posting of bond by the beneficiary.
2062	736.0817  Distribution on termination.--Upon the occurrence
2063	of an event terminating or partially terminating a trust, the
2064	trustee shall proceed expeditiously to distribute the trust
2065	property to the persons entitled to the property, subject to the
2066	right of the trustee to retain a reasonable reserve for the
2067	payment of debts, expenses, and taxes. The provisions of this
2068	section are in addition to and are not in derogation of the
2069	rights of a trustee under the common law with respect to final
2070	distribution of a trust.
2071	Section 9.  Part IX of chapter 736, Florida Statutes,
2072	consisting of section 736.0901, is created to read:
2073
2074	PART IX
2075	TRUST INVESTMENTS
2076
2077	736.0901  Applicability of chapter 518.--A trustee shall
2078	invest trust property in accordance with chapter 518.
2079	Section 10.  Part X of chapter 736, Florida Statutes,
2080	consisting of sections 736.1001, 736.1002, 736.1003, 736.1004,
2081	736.1005, 736.1006, 736.1007, 736.1008, 736.1009, 736.1010,
2082	736.1011, 736.1012, 736.1013, 736.1014, 736.1015, 736.1016,
2083	736.1017, and 736.1018, is created to read:
2084
2085	PART X
2086	LIABILITY OF TRUSTEE AND RIGHTS OF PERSONS DEALING WITH TRUSTEE
2087
2088	736.1001  Remedies for breach of trust.--
2089	(1)  A violation by a trustee of a duty the trustee owes to
2090	a beneficiary is a breach of trust.
2091	(2)  To remedy a breach of trust that has occurred or may
2092	occur, the court may:
2093	(a)  Compel the trustee to perform the trustee's duties;
2094	(b)  Enjoin the trustee from committing a breach of trust;
2095	(c)  Compel the trustee to redress a breach of trust by
2096	paying money or restoring property or by other means;
2097	(d)  Order a trustee to account;
2098	(e)  Appoint a special fiduciary to take possession of the
2099	trust property and administer the trust;
2100	(f)  Suspend the trustee;
2101	(g)  Remove the trustee as provided in s. 736.706;
2102	(h)  Reduce or deny compensation to the trustee;
2103	(i)  Subject to s. 736.1016, void an act of the trustee,
2104	impose a lien or a constructive trust on trust property, or
2105	trace trust property wrongfully disposed of and recover the
2106	property or its proceeds; or
2107	(j)  Order any other appropriate relief.
2108	(3)  As an illustration of the remedies available to the
2109	court and without limiting the court's discretion as provided in
2110	subsection (2), if a breach of trust results in the favoring of
2111	any beneficiary to the detriment of any other beneficiary or
2112	consists of an abuse of the trustee's discretion:
2113	(a)  To the extent the breach of trust has resulted in no
2114	distribution to a beneficiary or a distribution that is too
2115	small, the court may require the trustee to pay from the trust
2116	to the beneficiary an amount the court determines will restore
2117	the beneficiary, in whole or in part, to his or her appropriate
2118	position.
2119	(b)  To the extent the breach of trust has resulted in a
2120	distribution to a beneficiary that is too large, the court may
2121	restore the beneficiaries, the trust, or both, in whole or in
2122	part, to their appropriate positions by requiring the trustee to
2123	withhold an amount from one or more future distributions to the
2124	beneficiary who received the distribution that was too large or
2125	by requiring that beneficiary to return some or all of the
2126	distribution to the trust.
2127	736.1002  Damages for breach of trust.--
2128	(1)  A trustee who commits a breach of trust is liable for
2129	the greater of:
2130	(a)  The amount required to restore the value of the trust
2131	property and trust distributions to what they would have been if
2132	the breach had not occurred, including lost income, capital
2133	gain, or appreciation that would have resulted from proper
2134	administration; or
2135	(b)  The profit the trustee made by reason of the breach.
2136	(2)  Except as otherwise provided in this subsection, if
2137	more than one person, including a trustee or trustees, is liable
2138	to the beneficiaries for a breach of trust, each liable person
2139	is entitled to pro rata contribution from the other person or
2140	persons. A person is not entitled to contribution if the person
2141	committed the breach of trust in bad faith. A person who
2142	received a benefit from the breach of trust is not entitled to
2143	contribution from another person to the extent of the benefit
2144	received.
2145	(3)  In determining the pro rata shares of liable persons
2146	in the entire liability for a breach of trust:
2147	(a)  Their relative degrees of fault shall be the basis for
2148	allocation of liability.
2149	(b)  If equity requires, the collective liability of some
2150	as a group shall constitute a single share.
2151	(c)  Principles of equity applicable to contribution
2152	generally shall apply.
2153	(4)  The right of contribution shall be enforced as
2154	follows:
2155	(a)  Contribution may be enforced by separate action,
2156	whether or not judgment has been entered in an action against
2157	two or more liable persons for the same breach of trust.
2158	(b)  When a judgment has been entered in an action against
2159	two or more liable persons for the same breach of trust,
2160	contribution may be enforced in that action by judgment in favor
2161	of one judgment defendant against any other judgment defendants
2162	by motion upon notice to all parties to the action.
2163	(c)  If there is a judgment for breach of trust against the
2164	liable person seeking contribution, any separate action by that
2165	person to enforce contribution must be commenced within 1 year
2166	after the judgment has become final by lapse of time for appeal
2167	or after appellate review.
2168	(d)  If there is no judgment for the breach of trust
2169	against the liable person seeking contribution, the person's
2170	right of contribution is barred unless the person has:
2171	1.  Discharged by payment the common liability within the
2172	period of the statute of limitations applicable to the
2173	beneficiary's right of action against the liable person and the
2174	person has commenced an action for contribution within 1 year
2175	after payment, or
2176	2.  Agreed, while action is pending against the liable
2177	person, to discharge the common liability and has within 1 year
2178	after the agreement paid the liability and commenced the
2179	person's action for contribution.
2180	(5)  The beneficiary's recovery of a judgment for breach of
2181	trust against one liable person does not of itself discharge
2182	other liable persons from liability for the breach of trust
2183	unless the judgment is satisfied. The satisfaction of the
2184	judgment does not impair any right of contribution.
2185	(6)  The judgment of the court in determining the liability
2186	of several defendants to the beneficiary for breach of trust is
2187	binding upon such defendants in determining the right of such
2188	defendants to contribution.
2189	(7)  Subsection (2) applies to all causes of action for
2190	breach of trust pending on July 1, 2007, under which causes of
2191	action the right of contribution among persons jointly and
2192	severally liable is involved and to all causes of action filed
2193	after July 1, 2007.
2194	736.1003  Damages in absence of breach.--Absent a breach of
2195	trust, a trustee is not liable to a beneficiary for a loss or
2196	depreciation in the value of trust property or for not having
2197	made a profit.
2198	736.1004  Attorney's fees and costs.--
2199	(1)(a)  In all actions for breach of fiduciary duty or
2200	challenging the exercise of, or failure to exercise, a trustee's
2201	powers; and
2202	(b)  In proceedings arising under ss. 736.0410-736.0417,
2203
2204	the court shall award taxable costs as in chancery actions,
2205	including attorney fees and guardian ad litem fees.
2206	(2)  When awarding taxable costs under this section,
2207	including attorney fees and guardian ad litem fees, the court,
2208	in its discretion, may direct payment from a party's interest,
2209	if any, in the trust or enter a judgment that may be satisfied
2210	from other property of the party, or both.
2211	736.1005  Attorney's fees for services to the trust.--
2212	(1)  Any attorney who has rendered services to a trust may
2213	be awarded reasonable compensation from the trust. The attorney
2214	may apply to the court for an order awarding attorney's fees
2215	and, after notice and service on the trustee and all
2216	beneficiaries entitled to an accounting under s. 736.0813, the
2217	court shall enter an order on the fee application.
2218	(2)  Whenever attorney's fees are to be paid out of the
2219	trust, the court, in its discretion, may direct from what part
2220	of the trust the fees shall be paid.
2221	(3)  Except when a trustee's interest may be adverse in a
2222	particular matter, the attorney shall give reasonable notice in
2223	writing to the trustee of the attorney's retention by an
2224	interested person and the attorney's entitlement to fees
2225	pursuant to this section. A court may reduce any fee award for
2226	services rendered by the attorney prior to the date of actual
2227	notice to the trustee, if the actual notice date is later than a
2228	date of reasonable notice. In exercising this discretion, the
2229	court may exclude compensation for services rendered after the
2230	reasonable notice date but prior to the date of actual notice.
2231	736.1006  Costs in trust proceedings.--
2232	(1)  In all trust proceedings, costs may be awarded as in
2233	chancery actions.
2234	(2)  Whenever costs are to be paid out of the trust, the
2235	court, in its discretion, may direct from what part of the trust
2236	the costs shall be paid.
2237	736.1007  Trustee's attorney's fees.--
2238	(1)  If the trustee of a revocable trust retains an
2239	attorney to render legal services in connection with the initial
2240	administration of the trust, the attorney is entitled to
2241	reasonable compensation for those legal services, payable from
2242	the assets of the trust without court order. The trustee and the
2243	attorney may agree to compensation that is determined in a
2244	manner or amount other than the manner or amount provided in
2245	this section. The agreement is not binding on a person who bears
2246	the impact of the compensation unless that person is a party to
2247	or otherwise consents to be bound by the agreement. The
2248	agreement may provide that the trustee is not individually
2249	liable for the attorney's fees and costs.
2250	(2)  Unless otherwise agreed, compensation based on the
2251	value of the trust assets immediately following the settlor's
2252	death and the income earned by the trust during initial
2253	administration at the rate of 75 percent of the schedule
2254	provided in s. 733.6171(3)(a)-(h) is presumed to be reasonable
2255	total compensation for ordinary services of all attorneys
2256	employed generally to advise a trustee concerning the trustee's
2257	duties in initial trust administration.
2258	(3)  An attorney who is retained to render only limited and
2259	specifically defined legal services shall be compensated as
2260	provided in the retaining agreement. If the amount or method of
2261	determining compensation is not provided in the agreement, the
2262	attorney is entitled to a reasonable fee, taking into account
2263	the factors set forth in subsection (6).
2264	(4)  Ordinary services of the attorney in an initial trust
2265	administration include legal advice and representation
2266	concerning the trustee's duties relating to:
2267	(a)  Review of the trust instrument and each amendment for
2268	legal sufficiency and interpretation.
2269	(b)  Implementation of substitution of the successor
2270	trustee.
2271	(c)  Persons who must or should be served with required
2272	notices and the method and timing of such service.
2273	(d)  The obligation of a successor to require a former
2274	trustee to provide an accounting.
2275	(e)  The trustee's duty to protect, insure, and manage
2276	trust assets and the trustee's liability relating to these
2277	duties.
2278	(f)  The trustee's duty regarding investments imposed by
2279	the prudent investor rule.
2280	(g)  The trustee's obligation to inform and account to
2281	beneficiaries and the method of satisfaction of such
2282	obligations, the liability of the trust and trustee to the
2283	settlor's creditors, and the advisability or necessity for
2284	probate proceedings to bar creditors.
2285	(h)  Contributions due to the personal representative of
2286	the settlor's estate for payment of expenses of administration
2287	and obligations of the settlor's estate.
2288	(i)  Identifying tax returns required to be filed by the
2289	trustee, the trustee's liability for payment of taxes, and the
2290	due date of returns.
2291	(j)  Filing a nontaxable affidavit, if not filed by a
2292	personal representative.
2293	(k)  Order of payment of expenses of administration of the
2294	trust and order and priority of abatement of trust
2295	distributions.
2296	(l)  Distribution of income or principal to beneficiaries
2297	or funding of further trusts provided in the governing
2298	instrument.
2299	(m)  Preparation of any legal documents required to effect
2300	distribution.
2301	(n)  Fiduciary duties, avoidance of self-dealing, conflicts
2302	of interest, duty of impartiality, and obligations to
2303	beneficiaries.
2304	(o)  If there is a conflict of interest between a trustee
2305	who is a beneficiary and other beneficiaries of the trust,
2306	advice to the trustee on limitations of certain authority of the
2307	trustee regarding discretionary distributions or exercise of
2308	certain powers and alternatives for appointment of an
2309	independent trustee and appropriate procedures.
2310	(p)  Procedures for the trustee's discharge from liability
2311	for administration of the trust on termination or resignation.
2312	(5)  In addition to the attorney's fees for ordinary
2313	services, the attorney for the trustee shall be allowed further
2314	reasonable compensation for any extraordinary service. What
2315	constitutes an extraordinary service may vary depending on many
2316	factors, including the size of the trust. Extraordinary services
2317	may include, but are not limited to:
2318	(a)  Involvement in a trust contest, trust construction, a
2319	proceeding for determination of beneficiaries, a contested
2320	claim, elective share proceedings, apportionment of estate
2321	taxes, or other adversary proceedings or litigation by or
2322	against the trust.
2323	(b)  Representation of the trustee in an audit or any
2324	proceeding for adjustment, determination, or collection of any
2325	taxes.
2326	(c)  Tax advice on postmortem tax planning, including, but
2327	not limited to, disclaimer, renunciation of fiduciary
2328	commission, alternate valuation date, allocation of
2329	administrative expenses between tax returns, the QTIP or reverse
2330	QTIP election, allocation of GST exemption, qualification for
2331	Internal Revenue Code ss. 303 and 6166 privileges, deduction of
2332	last illness expenses, distribution planning, asset basis
2333	considerations, throwback rules, handling income or deductions
2334	in respect of a decedent, valuation discounts, special use and
2335	other valuation, handling employee benefit or retirement
2336	proceeds, prompt assessment request, or request for release from
2337	personal liability for payment of tax.
2338	(d)  Review of an estate tax return and preparation or
2339	review of other tax returns required to be filed by the trustee.
2340	(e)  Preparation of decedent's federal estate tax return.
2341	If this return is prepared by the attorney, a fee of one-half of
2342	1 percent up to a value of $10 million and one-fourth of 1
2343	percent on the value in excess of $10 million, of the gross
2344	estate as finally determined for federal estate tax purposes, is
2345	presumed to be reasonable compensation for the attorney for this
2346	service. These fees shall include services for routine audit of
2347	the return, not beyond the examining agent level, if required.
2348	(f)  Purchase, sale, lease, or encumbrance of real property
2349	by the trustee or involvement in zoning, land use,
2350	environmental, or other similar matters.
2351	(g)  Legal advice regarding carrying on of decedent's
2352	business or conducting other commercial activity by the trustee.
2353	(h)  Legal advice regarding claims for damage to the
2354	environment or related procedures.
2355	(i)  Legal advice regarding homestead status of trust real
2356	property or proceedings involving the status.
2357	(j)  Involvement in fiduciary, employee, or attorney
2358	compensation disputes.
2359	(k)  Considerations of special valuation of trust assets,
2360	including discounts for blockage, minority interests, lack of
2361	marketability, and environmental liability.
2362	(6)  Upon petition of any interested person in a proceeding
2363	to review the compensation paid or to be paid to the attorney
2364	for the trustee, the court may increase or decrease the
2365	compensation for ordinary services of the attorney for the
2366	trustee or award compensation for extraordinary services if the
2367	facts and circumstances of the particular administration
2368	warrant. In determining reasonable compensation, the court shall
2369	consider all of the following factors giving such weight to each
2370	as the court may determine to be appropriate:
2371	(a)  The promptness, efficiency, and skill with which the
2372	initial administration was handled by the attorney.
2373	(b)  The responsibilities assumed by, and potential
2374	liabilities of, the attorney.
2375	(c)  The nature and value of the assets that are affected
2376	by the decedent's death.
2377	(d)  The benefits or detriments resulting to the trust or
2378	the trust's beneficiaries from the attorney's services.
2379	(e)  The complexity or simplicity of the administration and
2380	the novelty of issues presented.
2381	(f)  The attorney's participation in tax planning for the
2382	estate, the trust, and the trust's beneficiaries and tax return
2383	preparation or review and approval.
2384	(g)  The nature of the trust assets, the expenses of
2385	administration, and the claims payable by the trust and the
2386	compensation paid to other professionals and fiduciaries.
2387	(h)  Any delay in payment of the compensation after the
2388	services were furnished.
2389	(i)  Any other relevant factors.
2390	(7)  The court may determine reasonable attorney's
2391	compensation without receiving expert testimony. Any party may
2392	offer expert testimony after notice to interested persons. If
2393	expert testimony is offered, an expert witness fee may be
2394	awarded by the court and paid from the assets of the trust. The
2395	court shall direct from what part of the trust the fee is to be
2396	paid.
2397	(8)  If a separate written agreement regarding compensation
2398	exists between the attorney and the settlor, the attorney shall
2399	furnish a copy to the trustee prior to commencement of
2400	employment and, if employed, shall promptly file and serve a
2401	copy on all interested persons. A separate agreement or a
2402	provision in the trust suggesting or directing the trustee to
2403	retain a specific attorney does not obligate the trustee to
2404	employ the attorney or obligate the attorney to accept the
2405	representation but, if the attorney who is a party to the
2406	agreement or who drafted the trust is employed, the compensation
2407	paid shall not exceed the compensation provided in the
2408	agreement.
2409	(9)  Court proceedings to determine compensation, if
2410	required, are a part of the trust administration process and the
2411	costs, including fees for the trustee's attorney, shall be
2412	determined by the court and paid from the assets of the trust
2413	unless the court finds the attorney's fees request to be
2414	substantially unreasonable. The court shall direct from what
2415	part of the trust the fees are to be paid.
2416	(10)  As used in this section, the term "initial trust
2417	administration" means administration of a revocable trust during
2418	the period that begins with the death of the settlor and ends on
2419	the final distribution of trust assets outright or to continuing
2420	trusts created under the trust agreement but, if an estate tax
2421	return is required, not until after issuance of an estate tax
2422	closing letter or other evidence of termination of the estate
2423	tax proceeding. This initial period is not intended to include
2424	continued regular administration of the trust.
2425	736.1008  Limitations on proceedings against trustees.--
2426	(1)  Except as provided in subsection (2), all claims by a
2427	beneficiary against a trustee for breach of trust are barred as
2428	provided in chapter 95 as to:
2429	(a)  All matters adequately disclosed in a trust disclosure
2430	document issued by the trustee, with the limitations period
2431	beginning on the date of receipt of adequate disclosure.
2432	(b)  All matters not adequately disclosed in a trust
2433	disclosure document if the trustee has issued a final trust
2434	accounting and has given written notice to the beneficiary of
2435	the availability of the trust records for examination and that
2436	any claims with respect to matters not adequately disclosed may
2437	be barred unless an action is commenced within the applicable
2438	limitations period provided in chapter 95. The limitations
2439	period begins on the date of receipt of the final trust
2440	accounting and notice.
2441	(2)  Unless sooner barred by adjudication, consent, or
2442	limitations, a beneficiary is barred from bringing an action
2443	against a trustee for breach of trust with respect to a matter
2444	that was adequately disclosed in a trust disclosure document
2445	unless a proceeding to assert the claim is commenced within 6
2446	months after receipt from the trustee of the trust disclosure
2447	document or a limitation notice that applies to that disclosure
2448	document, whichever is received later.
2449	(3)  When a trustee has not issued a final trust accounting
2450	or has not given written notice to the beneficiary of the
2451	availability of the trust records for examination and that
2452	claims with respect to matters not adequately disclosed may be
2453	barred, a claim against the trustee for breach of trust based on
2454	a matter not adequately disclosed in a trust disclosure document
2455	accrues when the beneficiary has actual knowledge of the
2456	trustee's repudiation of the trust or adverse possession of
2457	trust assets, and is barred as provided in chapter 95.
2458	(4)  As used in this section, the term:
2459	(a)  "Trust disclosure document" means a trust accounting
2460	or any other written report of the trustee. A trust disclosure
2461	document adequately discloses a matter if the document provides
2462	sufficient information so that a beneficiary knows of a claim or
2463	reasonably should have inquired into the existence of a claim
2464	with respect to that matter.
2465	(b)  "Trust accounting" means an accounting that adequately
2466	discloses the information required by and that substantially
2467	complies with the standards set forth in s. 736.08135.
2468	(c)  "Limitation notice" means a written statement of the
2469	trustee that an action by a beneficiary against the trustee for
2470	breach of trust based on any matter adequately disclosed in a
2471	trust disclosure document may be barred unless the action is
2472	commenced within 6 months after receipt of the trust disclosure
2473	document or receipt of a limitation notice that applies to that
2474	trust disclosure document, whichever is later. A limitation
2475	notice may but is not required to be in the following form: "An
2476	action for breach of trust based on matters disclosed in a trust
2477	accounting or other written report of the trustee may be subject
2478	to a 6-month statute of limitations from the receipt of the
2479	trust accounting or other written report. If you have questions,
2480	please consult your attorney."
2481	(5)  For purposes of this section, a limitation notice
2482	applies to a trust disclosure document when the limitation
2483	notice is:
2484	(a)  Contained as a part of the trust disclosure document
2485	or as a part of another trust disclosure document received
2486	within 1 year prior to the receipt of the latter trust
2487	disclosure document;
2488	(b)  Accompanied concurrently by the trust disclosure
2489	document or by another trust disclosure document that was
2490	received within 1 year prior to the receipt of the latter trust
2491	disclosure document;
2492	(c)  Delivered separately within 10 days after the delivery
2493	of the trust disclosure document or of another trust disclosure
2494	document that was received within 1 year prior to the receipt of
2495	the latter trust disclosure document. For purposes of this
2496	paragraph, a limitation notice is not delivered separately if
2497	the notice is accompanied by another written communication,
2498	other than a written communication that refers only to the
2499	limitation notice; or
2500	(d)  Received more than 10 days after the delivery of the
2501	trust disclosure document but only if the limitation notice
2502	references that trust disclosure document and:
2503	1.  Offers to provide to the beneficiary on request another
2504	copy of that trust disclosure document if the document was
2505	received by the beneficiary within 1 year prior to receipt of
2506	the limitation notice; or
2507	2.  Is accompanied by another copy of that trust disclosure
2508	document if the trust disclosure document was received by the
2509	beneficiary 1 year or more prior to the receipt of the
2510	limitation notice.
2511	(6)  This section applies to trust accountings for
2512	accounting periods beginning on or after January 1, 2008, and to
2513	written reports, other than trust accountings, received by a
2514	beneficiary on or after January 1, 2008.
2515	736.1009  Reliance on trust instrument.--A trustee who acts
2516	in reasonable reliance on the terms of the trust as expressed in
2517	the trust instrument is not liable to a beneficiary for a breach
2518	of trust to the extent the breach resulted from the reliance.
2519	736.1010  Event affecting administration or
2520	distribution.--If the happening of an event, including marriage,
2521	divorce, performance of educational requirements, or death,
2522	affects the administration or distribution of a trust, a trustee
2523	who has exercised reasonable care to ascertain the happening of
2524	the event is not liable for a loss resulting from the trustee's
2525	lack of knowledge.
2526	736.1011  Exculpation of trustee.--
2527	(1)  A term of a trust relieving a trustee of liability for
2528	breach of trust is unenforceable to the extent that the term:
2529	(a)  Relieves the trustee of liability for breach of trust
2530	committed in bad faith or with reckless indifference to the
2531	purposes of the trust or the interests of the beneficiaries; or
2532	(b)  Was inserted into the trust instrument as the result
2533	of an abuse by the trustee of a fiduciary or confidential
2534	relationship with the settlor.
2535	(2)  An exculpatory term drafted or caused to be drafted by
2536	the trustee is invalid as an abuse of a fiduciary or
2537	confidential relationship unless the trustee proves that the
2538	exculpatory term is fair under the circumstances and that the
2539	term's existence and contents were adequately communicated
2540	directly to the settlor.
2541	736.1012  Beneficiary's consent, release, or
2542	ratification.--A trustee is not liable to a beneficiary for
2543	breach of trust if the beneficiary consented to the conduct
2544	constituting the breach, released the trustee from liability for
2545	the breach, or ratified the transaction constituting the breach,
2546	unless:
2547	(1)  The consent, release, or ratification of the
2548	beneficiary was induced by improper conduct of the trustee; or
2549	(2)  At the time of the consent, release, or ratification,
2550	the beneficiary did not know of the beneficiary's rights or of
2551	the material facts relating to the breach.
2552	736.1013  Limitation on personal liability of trustee.--
2553	(1)  Except as otherwise provided in the contract, a
2554	trustee is not personally liable on a contract properly entered
2555	into in the trustee's fiduciary capacity in the course of
2556	administering the trust if the trustee in the contract disclosed
2557	the fiduciary capacity.
2558	(2)  A trustee is personally liable for torts committed in
2559	the course of administering a trust or for obligations arising
2560	from ownership or control of trust property only if the trustee
2561	is personally at fault.
2562	(3)  A claim based on a contract entered into by a trustee
2563	in the trustee's fiduciary capacity, on an obligation arising
2564	from ownership or control of trust property, or on a tort
2565	committed in the course of administering a trust may be asserted
2566	in a judicial proceeding against the trustee in the trustee's
2567	fiduciary capacity, whether or not the trustee is personally
2568	liable for the claim.
2569	(4)  Issues of liability between the trust estate and the
2570	trustee individually may be determined in a proceeding for
2571	accounting, surcharge, or indemnification or in any other
2572	appropriate proceeding.
2573	736.1014  Limitations on actions against certain trusts.--
2574	(1)  After the death of a settlor, no creditor of the
2575	settlor may bring, maintain, or continue any direct action
2576	against a trust described in s. 733.707(3), the trustee of the
2577	trust, or any beneficiary of the trust that is dependent on the
2578	individual liability of the settlor. Such claims and causes of
2579	action against the settlor shall be presented and enforced
2580	against the settlor's estate as provided in part VII of chapter
2581	733 and the personal representative of the settlor's estate may
2582	obtain payment from the trustee of a trust described in s.
2583	733.707(3) as provided in ss. 733.607(2), 733.707(3), and
2584	736.05053.
2585	(2)  This section does not preclude a direct action against
2586	a trust described in s. 733.707(3), the trustee of the trust, or
2587	a beneficiary of the trust that is not dependent on the
2588	individual liability of the settlor.
2589	(3)  This section does not affect the lien of any duly
2590	recorded mortgage or security interest or the lien of any person
2591	in possession of personal property or the right to foreclose and
2592	enforce the mortgage or lien.
2593	736.1015  Interest as general partner.--
2594	(1)  Unless personal liability is imposed in the contract,
2595	a trustee who holds an interest as a general partner in a
2596	general or limited partnership is not personally liable on a
2597	contract entered into by the partnership after the trust's
2598	acquisition of the interest if the fiduciary capacity was
2599	disclosed in the contract or in a statement previously filed
2600	pursuant to a Uniform Partnership Act or Uniform Limited
2601	Partnership Act.
2602	(2)  A trustee who holds an interest as a general partner
2603	is not personally liable for torts committed by the partnership
2604	or for obligations arising from ownership or control of the
2605	interest unless the trustee is personally at fault.
2606	(3)  If the trustee of a revocable trust holds an interest
2607	as a general partner, the settlor is personally liable for
2608	contracts and other obligations of the partnership as if the
2609	settlor were a general partner.
2610	736.1016  Protection of person dealing with trustee.--
2611	(1)  A person other than a beneficiary who in good faith
2612	assists a trustee or who in good faith and for value deals with
2613	a trustee, without knowledge that the trustee is exceeding or
2614	improperly exercising the trustee's powers, is protected from
2615	liability as if the trustee properly exercised the power.
2616	(2)  A person other than a beneficiary who in good faith
2617	deals with a trustee is not required to inquire into the extent
2618	of the trustee's powers or the propriety of their exercise.
2619	(3)  A person who in good faith delivers assets to a
2620	trustee need not ensure their proper application.
2621	(4)  A person other than a beneficiary who in good faith
2622	assists a former trustee or who in good faith and for value
2623	deals with a former trustee, without knowledge that the
2624	trusteeship has terminated, is protected from liability as if
2625	the former trustee were still a trustee.
2626	(5)  Comparable protective provisions of other laws
2627	relating to commercial transactions or transfer of securities by
2628	fiduciaries prevail over the protection provided by this
2629	section.
2630	736.1017  Certification of trust.--
2631	(1)  Instead of furnishing a copy of the trust instrument
2632	to a person other than a beneficiary, the trustee may furnish to
2633	the person a certification of trust containing the following
2634	information:
2635	(a)  The trust exists and the date the trust instrument was
2636	executed.
2637	(b)  The identity of the settlor.
2638	(c)  The identity and address of the currently acting
2639	trustee.
2640	(d)  The powers of the trustee.
2641	(e)  The revocability or irrevocability of the trust and
2642	the identity of any person holding a power to revoke the trust.
2643	(f)  The authority of cotrustees to sign or otherwise
2644	authenticate and whether all or less than all are required in
2645	order to exercise powers of the trustee.
2646	(g)  The manner of taking title to trust property.
2647	(2)  A certification of trust may be signed or otherwise
2648	authenticated by any trustee.
2649	(3)  A certification of trust must state that the trust has
2650	not been revoked, modified, or amended in any manner that would
2651	cause the representations contained in the certification of
2652	trust to be incorrect.
2653	(4)  A certification of trust need not contain the
2654	dispositive terms of a trust.
2655	(5)  A recipient of a certification of trust may require
2656	the trustee to furnish copies of any excerpts from the original
2657	trust instrument and later amendments that designate the trustee
2658	and confer upon the trustee the power to act in the pending
2659	transaction.
2660	(6)  A person who acts in reliance on a certification of
2661	trust without knowledge that the representations contained in
2662	the certification are incorrect is not liable to any person for
2663	so acting and may assume without inquiry the existence of the
2664	facts contained in the certification. Knowledge of the terms of
2665	the trust may not be inferred solely from the fact that a copy
2666	of all or part of the trust instrument is held by the person
2667	relying on the certification.
2668	(7)  A person who in good faith enters into a transaction
2669	in reliance on a certification of trust may enforce the
2670	transaction against the trust property as if the representations
2671	contained in the certification were correct.
2672	(8)  This section does not limit the right of a person to
2673	obtain a copy of the trust instrument when required to be
2674	furnished by law or in a judicial proceeding concerning the
2675	trust.
2676	736.1018  Improper distribution or payment; liability of
2677	distributee.--Any person who received a distribution or was paid
2678	improperly from a trust shall return the assets or funds
2679	received and the income from those assets or interest on the
2680	funds from the date of distribution or payment unless the
2681	distribution or payment cannot be questioned because of
2682	adjudication, estoppel, or limitations. If the person does not
2683	have the assets or funds, the value of the assets or funds at
2684	the date of disposition, income from the assets or funds, and
2685	gain received by the person from the assets or funds shall be
2686	returned.
2687	Section 11.  Part XI of chapter 736, Florida Statutes,
2688	consisting of sections 736.1101, 736.1102, 736.1103, 736.1104,
2689	736.1105, 736.1106, 736.1107, and 736.1108, is created to read:
2690
2691	PART XI
2692	RULES OF CONSTRUCTION
2693
2694	736.1101  Rules of construction; general
2695	provisions.--Except as provided in s. 736.0105(2):
2696	(1)  The intent of the settlor as expressed in the terms of
2697	the trust controls the legal effect of the dispositions made in
2698	the trust.
2699	(2)  The rules of construction as expressed in this part
2700	shall apply unless a contrary intent is indicated by the terms
2701	of the trust.
2702	736.1102  Construction of generic terms.--Adopted persons
2703	and persons born out of wedlock are included in class gift
2704	terminology and terms of relationship, in accordance with rules
2705	for determining relationships for purposes of intestate
2706	succession.
2707	736.1103  Gifts to multigeneration classes to be per
2708	stirpes.--Class gifts to descendants, issue, and other
2709	multigeneration classes shall be per stirpes.
2710	736.1104  Killer not entitled to receive property or other
2711	benefits by reason of victim's death.--
2712	(1)  A beneficiary of a trust who unlawfully and
2713	intentionally kills or unlawfully and intentionally participates
2714	in procuring the death of the settlor or another person on whose
2715	death such beneficiary's interest depends, is not entitled to
2716	any trust interest, including homestead, dependent on the
2717	victim's death and such interest shall devolve as though the
2718	killer had predeceased the victim.
2719	(2)  A final judgment of conviction of murder in any degree
2720	is conclusive for the purposes of this section. In the absence
2721	of a murder conviction in any degree, the court may determine by
2722	the greater weight of the evidence whether the killing was
2723	unlawful and intentional for purposes of this section.
2724	736.1105  Dissolution of marriage; effect on revocable
2725	trust.--Unless the trust instrument or the judgment for
2726	dissolution of marriage or divorce expressly provides otherwise,
2727	if a revocable trust is executed by a husband or wife as settlor
2728	prior to annulment of the marriage or entry of a judgment for
2729	dissolution of marriage or divorce of the settlor from the
2730	settlor's spouse, any provision of the trust that affects the
2731	settlor's spouse will become void upon annulment of the marriage
2732	or entry of the judgment of dissolution of marriage or divorce
2733	and any such trust shall be administered and construed as if the
2734	settlor's spouse had died on the date of the annulment or on
2735	entry of the judgment for dissolution of marriage or divorce.
2736	736.1106  Antilapse; survivorship with respect to future
2737	interests under terms of inter vivos and testamentary trusts;
2738	substitute takers.--
2739	(1)  As used in this section, the term:
2740	(a)  "Beneficiary" means the beneficiary of a future
2741	interest and includes a class member if the future interest is
2742	in the form of a class gift.
2743	(b)  "Distribution date," with respect to a future
2744	interest, means the time when the future interest is to take
2745	effect in possession or enjoyment. The distribution date need
2746	not occur at the beginning or end of a calendar day, but can
2747	occur at a time during the course of a day.
2748	(c)  "Future interest" includes an alternative future
2749	interest and a future interest in the form of a class gift.
2750	(d)  "Future interest under the terms of a trust" means a
2751	future interest created by an inter vivos or testamentary
2752	transfer to an existing trust or creating a trust or by an
2753	exercise of a power of appointment to an existing trust
2754	directing the continuance of an existing trust, designating a
2755	beneficiary of an existing trust, or creating a trust.
2756	(e)  "Surviving beneficiary" or "surviving descendant"
2757	means a beneficiary or a descendant who did not predecease the
2758	distribution date or is not deemed to have predeceased the
2759	distribution date by operation of law.
2760	(2)  A future interest under the terms of a trust is
2761	contingent upon the beneficiary surviving the distribution date.
2762	Unless a contrary intent appears in the trust instrument, if a
2763	beneficiary of a future interest under the terms of a trust
2764	fails to survive the distribution date, and the deceased
2765	beneficiary leaves surviving descendants, a substitute gift is
2766	created in the beneficiary's surviving descendants. They take
2767	per stirpes the property to which the beneficiary would have
2768	been entitled if the beneficiary had survived the distribution
2769	date.
2770	(3)  In the application of this section:
2771	(a)  Words of survivorship attached to a future interest
2772	are a sufficient indication of an intent contrary to the
2773	application of this section.
2774	(b)  A residuary clause in a will is not a sufficient
2775	indication of an intent contrary to the application of this
2776	section, whether or not the will specifically provides that
2777	lapsed or failed devises are to pass under the residuary clause.
2778	(4)  If, after the application of subsections (2) and (3),
2779	there is no surviving taker, the property passes in the
2780	following order:
2781	(a)  If the future interest was created by the exercise of
2782	a power of appointment, the property passes under the donor's
2783	gift-in-default clause, if any, which clause is treated as
2784	creating a future interest under the terms of a trust.
2785	(b)  If no taker is produced by the application of
2786	paragraph (a) and the trust was created in a nonresiduary devise
2787	or appointment in the transferor's will, the property passes
2788	under the residuary clause in the transferor's will. For
2789	purposes of this section, the residuary clause is treated as
2790	creating a future interest under the terms of a trust.
2791	(c)  If no taker is produced by the application of
2792	paragraph (a) or paragraph (b), the property passes to those
2793	persons, including the state, and in such shares as would
2794	succeed to the transferor's intestate estate under the intestate
2795	succession law of the transferor's domicile if the transferor
2796	died when the disposition is to take effect in possession or
2797	enjoyment.
2798
2799	For purposes of paragraphs (b) and (c), the term "transferor"
2800	with respect to a future interest created by the exercise of a
2801	power of appointment, means the donor if the power was a
2802	nongeneral power and the donee if the power was a general power.
2803	(5)  This section applies to all trusts other than trusts
2804	that were irrevocable before the effective date of this code.
2805	736.1107  Change in securities; accessions;
2806	nonademption.--A gift of specific securities, rather than their
2807	equivalent value, entitles the beneficiary only to:
2808	(1)  As much of the gifted securities of the same issuer
2809	held by the trust estate at the time of the occurrence of the
2810	event entitling the beneficiary to distribution.
2811	(2)  Any additional or other securities of the same issuer
2812	held by the trust estate because of action initiated by the
2813	issuer, excluding any acquired by exercise of purchase options.
2814	(3)  Securities of another issuer held by the trust estate
2815	as a result of a merger, consolidation, reorganization, or other
2816	similar action initiated by the original issuer.
2817	736.1108  Penalty clause for contest.--
2818	(1)  A provision in a trust instrument purporting to
2819	penalize any interested person for contesting the trust
2820	instrument or instituting other proceedings relating to a trust
2821	estate or trust assets is unenforceable.
2822	(2)  This section applies to trusts created on or after
2823	October 1, 1993. For purposes of this subsection, a revocable
2824	trust shall be treated as created when the right of revocation
2825	terminates.
2826	Section 12.  Part XII of chapter 736, Florida Statutes,
2827	consisting of sections 736.1201, 736.1202, 736.1203, 736.1204,
2828	736.1205, 736.1206, 736.1207, 736.1208, 736.1209, and 736.1210,
2829	is created to read:
2830
2831	PART XII
2832	CHARITABLE TRUSTS
2833
2834	736.1201  Definitions.--As used in this part:
2835	(1)  "Charitable organization" means an organization
2836	described in s. 501(c)(3) of the Internal Revenue Code and
2837	exempt from tax under s. 501(a) of the Internal Revenue Code.
2838	(2)  "Internal Revenue Code" means the Internal Revenue
2839	Code of 1986, as amended.
2840	(3)  "Private foundation trust" means a trust, including a
2841	trust described in s. 4947(a)(1) of the Internal Revenue Code,
2842	as defined in s. 509(a) of the Internal Revenue Code.
2843	(4)  "Split interest trust" means a trust for individual
2844	and charitable beneficiaries that is subject to the provisions
2845	of s. 4947(a)(2) of the Internal Revenue Code.
2846	(5)  "State attorney" means the state attorney for the
2847	judicial circuit of the principal place of administration of the
2848	trust pursuant to s. 736.0108.
2849	736.1202  Application of this part.--Except as otherwise
2850	provided in the trust, the provisions of this part apply to all
2851	private foundation trusts and split interest trusts, whether
2852	created or established before or after November 1, 1971, and to
2853	all trust assets acquired by the trustee before or after
2854	November 1, 1971.
2855	736.1203  Trustee of a private foundation trust or a split
2856	interest trust.--Except as provided in s. 736.1205, the trustee
2857	of a private foundation trust or a split interest trust has the
2858	duties and powers conferred on the trustee by this part.
2859	736.1204  Powers and duties of trustee of a private
2860	foundation trust or a split interest trust.--
2861	(1)  In the exercise of a trustee's powers, including the
2862	powers granted by this part, a trustee has a duty to act with
2863	due regard to the trustee's obligation as a fiduciary, including
2864	a duty not to exercise any power in such a way as to:
2865	(a)  Deprive the trust of an otherwise available tax
2866	exemption, deduction, or credit for tax purposes;
2867	(b)  Deprive a donor of a trust asset or tax deduction or
2868	credit; or
2869	(c)  Operate to impose a tax on a donor, trust, or other
2870	person.
2871
2872	For purposes of this subsection, the term "tax" includes, but is
2873	not limited to, any federal, state, or local excise, income,
2874	gift, estate, or inheritance tax.
2875	(2)  Except as provided in s. 736.1205, a trustee of a
2876	private foundation trust shall make distributions at such time
2877	and in such manner as not to subject the trust to tax under s.
2878	4942 of the Internal Revenue Code.
2879	(3)  Except as provided in subsection (4) and in s.
2880	736.1205, a trustee of a private foundation trust, or a split
2881	interest trust to the extent that the split interest trust is
2882	subject to the provisions of s. 4947(a)(2) of the Internal
2883	Revenue Code, in the exercise of the trustee's powers shall not:
2884	(a)  Engage in any act of self-dealing as defined in s.
2885	4941(d) of the Internal Revenue Code;
2886	(b)  Retain any excess business holdings as defined in s.
2887	4943(c) of the Internal Revenue Code;
2888	(c)  Make any investments in a manner that subjects the
2889	foundation to tax under s. 4944 of the Internal Revenue Code; or
2890	(d)  Make any taxable expenditures as defined in s. 4945(d)
2891	of the Internal Revenue Code.
2892	(4)  Paragraphs (3)(b) and (c) shall not apply to a split
2893	interest trust if:
2894	(a)  All the interest from income, and none of the
2895	remainder interest, of the trust is devoted solely to one or
2896	more of the purposes described in s. 170(c)(2)(B) of the
2897	Internal Revenue Code, and all amounts in the trust for which a
2898	deduction was allowed under s. 170, s. 545(b)(2), s. 556(b)(2),
2899	s. 642(c), s. 2055, s. 2106(a)(2), or s. 2522 of the Internal
2900	Revenue Code have an aggregate fair market value of not more
2901	than 60 percent of the aggregate fair market value of all
2902	amounts in the trust; or
2903	(b)  A deduction was allowed under s. 170, s. 545(b)(2), s.
2904	556(b)(2), s. 642(c), s. 2055, s. 2106(a)(2), or s. 2522 of the
2905	Internal Revenue Code for amounts payable under the terms of the
2906	trust to every remainder beneficiary but not to any income
2907	beneficiary.
2908	736.1205  Notice that this part does not apply.--In the
2909	case of a power to make distributions, if the trustee determines
2910	that the governing instrument contains provisions that are more
2911	restrictive than s. 736.1204(2), or if the trust contains other
2912	powers, inconsistent with the provisions of s. 736.1204(3) that
2913	specifically direct acts by the trustee, the trustee shall
2914	notify the state attorney when the trust becomes subject to this
2915	part. Section 736.1204 does not apply to any trust for which
2916	notice has been given pursuant to this section unless the trust
2917	is amended to comply with the terms of this part.
2918	736.1206  Power to amend trust instrument.--
2919	(1)  In the case of a trust that is solely for a named
2920	charitable organization or organizations and for which the
2921	trustee does not possess any discretion concerning the
2922	distribution of income or principal among two or more such
2923	organizations, the trustee may amend the governing instrument to
2924	comply with the provisions of s. 736.1204(2) with the consent of
2925	the named charitable organization or organizations.
2926	(2)  In the case of a charitable trust that is not subject
2927	to the provisions of subsection (1), the trustee may amend the
2928	governing instrument to comply with the provisions of s.
2929	736.1204(2) with the consent of the state attorney.
2930	736.1207  Power of court to permit deviation.--This part
2931	does not affect the power of a court to relieve a trustee from
2932	any restrictions on the powers and duties that are placed on the
2933	trustee by the governing instrument or applicable law for cause
2934	shown and on complaint of the trustee, state attorney, or an
2935	affected beneficiary and notice to the affected parties.
2936	736.1208  Release; property and persons affected; manner of
2937	effecting.--
2938	(1)  The trustee of a trust, all of the unexpired interests
2939	in which are devoted to one or more charitable purposes, may
2940	release a power to select charitable donees unless the creating
2941	instrument provides otherwise.
2942	(2)  The release of a power to select charitable donees may
2943	apply to all or any part of the property subject to the power
2944	and may reduce or limit the charitable organizations, or classes
2945	of charitable organizations, in whose favor the power is
2946	exercisable.
2947	(3)  A release shall be effected by a duly acknowledged
2948	written instrument signed by the trustee and delivered as
2949	provided in subsection (4).
2950	(4)  Delivery of a release shall be accomplished as
2951	follows:
2952	(a)  If the release is accomplished by specifying a
2953	charitable organization or organizations as beneficiary or
2954	beneficiaries of the trust, by delivery of a copy of the release
2955	to each designated charitable organization.
2956	(b)  If the release is accomplished by reducing the class
2957	of permissible charitable organizations, by delivery of a copy
2958	of the release to the state attorney.
2959	(5)  If a release is accomplished by specifying a public
2960	charitable organization or organizations as beneficiary or
2961	beneficiaries of the trust, the trust at all times thereafter
2962	shall be operated exclusively for the benefit of, and be
2963	supervised by, the specified public charitable organization or
2964	organizations.
2965	736.1209  Election to come under this part.--With the
2966	consent of that organization or organizations, a trustee of a
2967	trust for the benefit of a public charitable organization or
2968	organizations may come under s. 736.0838(5) by filing with the
2969	state attorney an election, accompanied by the proof of required
2970	consent. Thereafter the trust shall be subject to s.
2971	736.1208(5).
2972	736.1210  Interpretation.--This part shall be interpreted
2973	to effectuate the intent of the state to preserve, foster, and
2974	encourage gifts to, or for the benefit of, charitable
2975	organizations.
2976	Section 13.  Part XIII of chapter 736, Florida Statutes,
2977	consisting of sections 736.1301, 736.1302, and 736.1303, is
2978	created to read:
2979
2980	PART XIII
2981	MISCELLANEOUS
2982
2983	736.1301  Electronic records and signatures.--Any
2984	provisions of this code governing the legal effect, validity, or
2985	enforceability of electronic records or electronic signatures,
2986	and of contracts formed or performed with the use of such
2987	records or signatures, are deemed to conform to the requirements
2988	of s. 102 of the Electronic Signatures in Global and National
2989	Commerce Act, 15 U.S.C. s. 7002, and supersede, modify, and
2990	limit the requirements of the Electronic Signatures in Global
2991	and National Commerce Act.
2992	736.1302  Severability clause.--If any provision of this
2993	code or its application to any person or circumstances is held
2994	invalid, the invalidity does not affect other provisions or
2995	applications of this code that can be given effect without the
2996	invalid provision or application, and to this end the provisions
2997	of this code are severable.
2998	736.1303  Application to existing relationships.--
2999	(1)  Except as otherwise provided in this code, on July 1,
3000	2007:
3001	(a)  This code applies to all trusts created before, on, or
3002	after such date.
3003	(b)  This code applies to all judicial proceedings
3004	concerning trusts commenced on or after such date.
3005	(c)  This code applies to judicial proceedings concerning
3006	trusts commenced before such date, unless the court finds that
3007	application of a particular provision of this code would
3008	substantially interfere with the effective conduct of the
3009	judicial proceedings or prejudice the rights of the parties, in
3010	which case the particular provision of this code does not apply
3011	and the superseded law applies.
3012	(d)  Any rule of construction or presumption provided in
3013	this code applies to trust instruments executed before the
3014	effective date of this code unless there is a clear indication
3015	of a contrary intent in the terms of the trust.
3016	(e)  An act done before such date is not affected by this
3017	code.
3018	(2)  If a right is acquired, extinguished, or barred on the
3019	expiration of a prescribed period that has commenced to run
3020	under any other law before July 1, 2007, that law continues to
3021	apply to the right even if it has been repealed or superseded.
3022	Section 14.  Paragraph (a) of subsection (5) of section
3023	497.458, Florida Statutes, is amended to read:
3024	497.458  Disposition of proceeds received on contracts.--
3025	(5)  The trustee of the trust established pursuant to this
3026	section shall only have the power to:
3027	(a)  Invest in investments as prescribed in s. 215.47 and
3028	exercise the powers set forth in part VIII of chapter 736 part
3029	IV of chapter 737, provided that the licensing authority may by
3030	order require the trustee to liquidate or dispose of any
3031	investment within 30 days after such order, or within such other
3032	times as the order may direct. The licensing authority may issue
3033	such order if it determines that the investment violates any
3034	provision of this chapter or is not in the best interests of the
3035	preneed contract holders whose contracts are secured by the
3036	trust funds.
3037	Section 15.  Subsection (2) of section 607.0802, Florida
3038	Statutes, is amended to read:
3039	607.0802  Qualifications of directors.--
3040	(2)  In the event that the eligibility to serve as a member
3041	of the board of directors of a condominium association,
3042	cooperative association, homeowners' association, or mobile home
3043	owners' association is restricted to membership in such
3044	association and membership is appurtenant to ownership of a
3045	unit, parcel, or mobile home, a grantor of a trust described in
3046	s. 733.707(3), or a qualified beneficiary as defined in s.
3047	736.0103(14) 737.303(4)(b) of a trust which owns a unit, parcel,
3048	or mobile home shall be deemed a member of the association and
3049	eligible to serve as a director of the condominium association,
3050	cooperative association, homeowners' association, or mobile home
3051	owners' association, provided that said beneficiary occupies the
3052	unit, parcel, or mobile home.
3053	Section 16.  Subsection (2) of section 617.0802, Florida
3054	Statutes, is amended to read:
3055	617.0802  Qualifications of directors.--
3056	(2)  In the event that the eligibility to serve as a member
3057	of the board of directors of a condominium association,
3058	cooperative association, homeowners' association, or mobile home
3059	owners' association is restricted to membership in such
3060	association and membership is appurtenant to ownership of a
3061	unit, parcel, or mobile home, a grantor of a trust described in
3062	s. 733.707(3), or a qualified beneficiary as defined in s.
3063	736.0103(14) 737.303(4)(b) of a trust which owns a unit, parcel,
3064	or mobile home shall be deemed a member of the association and
3065	eligible to serve as a director of the condominium association,
3066	cooperative association, homeowners' association, or mobile home
3067	owners' association, provided that said beneficiary occupies the
3068	unit, parcel, or mobile home.
3069	Section 17.  Subsection (6) of section 660.25, Florida
3070	Statutes, is amended to read:
3071	660.25  Definitions.--Subject to other definitions
3072	contained in other sections of this code, and unless the context
3073	otherwise requires, in this chapter:
3074	(6)  Terms used but not defined in this chapter, but which
3075	are expressly defined in chapter 518, the financial institutions
3076	codes, chapter 732, chapter 733, chapter 734, chapter 735,
3077	chapter 736 737, chapter 738, chapter 744, or chapter 747, shall
3078	in this chapter, unless the context otherwise requires, have the
3079	meanings ascribed to them in said chapters; and references in
3080	any of said chapters to a "trust company" or to "trust
3081	companies" shall include every trust department as defined in s.
3082	658.12.
3083	Section 18.  Paragraphs (a), (d), and (e) of subsection (1)
3084	and subsections (2), (3), (9), and (10) of section 660.46,
3085	Florida Statutes, are amended to read:
3086	660.46  Substitution of fiduciaries.--
3087	(1)  The provisions of this section shall apply to the
3088	transfer of fiduciary accounts by substitution, and for those
3089	purposes these provisions shall constitute alternative
3090	procedures to those provided or required by any other provisions
3091	of law relating to the transfer of fiduciary accounts or the
3092	substitution of persons acting or who are to act in a fiduciary
3093	capacity. In this section, and only for its purposes, the term:
3094	(a)  "Limitation notice" has the meaning ascribed in s.
3095	736.1008(4) 737.307(3).
3096	(d)  "Trust accounting" has the meaning ascribed in s.
3097	736.08135 737.3035.
3098	(e)  "Trust disclosure document" has the meaning ascribed
3099	in s. 736.1008(4)(a) 737.307(2).
3100	(2)  Any original fiduciary and any proposed substitute
3101	fiduciary may, with respect to any fiduciary account or accounts
3102	which they shall mutually select, initiate proceedings by
3103	joining in the filing of a petition in the circuit court,
3104	requesting the substitution of the proposed substitute fiduciary
3105	for the original fiduciary as to such fiduciary account or
3106	accounts. The petition may be filed in the county in which the
3107	main office of the original fiduciary is located and, except to
3108	the extent inconsistent with the provisions of this section,
3109	shall be governed by the Florida Rules of Civil Procedure;
3110	however, if any fiduciary account is then the subject of a
3111	proceeding in a court in this state pursuant to the Florida
3112	Probate Code, the Florida Guardianship Law, chapter 736 737, or
3113	chapter 747, the petition relating to such fiduciary account
3114	shall be filed in that proceeding and shall be governed by the
3115	procedural or other relevant rules applicable to such proceeding
3116	except to the extent inconsistent with the provisions of this
3117	section.
3118	(3)  Unless a waiver or consent shall be filed in the
3119	proceedings as provided in subsection (4), the provisions of s.
3120	731.301(1) and (2) shall apply with respect to notice of the
3121	proceedings to all persons who are then cofiduciaries with the
3122	original fiduciary, other than a person joining as a petitioner
3123	in the proceedings; to all persons named in the governing
3124	instrument as substitutes or successors to the fiduciary
3125	capacity of the original fiduciary; to the persons then living
3126	who are entitled under the governing instrument to appoint a
3127	substitute or successor to act in the fiduciary capacity of the
3128	original fiduciary; to all vested beneficiaries of the fiduciary
3129	account; and to all then-living originators of the governing
3130	instrument. Unless a waiver or consent shall be filed in the
3131	proceedings as provided in subsection (4), the provisions of s.
3132	731.301 shall apply with respect to notice to all contingent
3133	beneficiaries of the fiduciary account. Only the persons or
3134	classes of persons described in the foregoing provisions of this
3135	subsection shall be deemed to be interested persons for the
3136	purposes of this section and the proceedings and notices
3137	provided for in this section; and the provisions of ss.
3138	731.301(3) and 731.303(3) and, (4), and (5), part III of chapter
3139	736, relating to notice requirements, the effect of notice, and
3140	representation of interests, shall apply to the proceedings
3141	provided for in this section.
3142	(9)  Unless previously or otherwise barred by adjudication,
3143	waiver, consent, limitation, or the provisions of subsection
3144	(8), an action for breach of trust or breach of fiduciary duties
3145	or responsibilities against an original fiduciary in whose place
3146	and stead another trust company or trust department has been
3147	substituted pursuant to the provisions of this section is barred
3148	for any beneficiary who has received a trust disclosure document
3149	adequately disclosing the matter unless a proceeding to assert
3150	the claim is commenced within 6 months after receipt of the
3151	trust disclosure document or the limitation notice that applies
3152	to the trust disclosure document, whichever is received later.
3153	In any event, and notwithstanding lack of adequate disclosure,
3154	all claims against such original fiduciary which has complied
3155	with the requirements of s. 736.1008 issued a final trust
3156	disclosure document received by the beneficiary and has informed
3157	the beneficiary of the location and availability of records for
3158	his or her examination are barred as provided in chapter 95.
3159	Section 736.1008(4)(a) and (c) 737.307(2) and (3) applies to
3160	this subsection.
3161	(10)  A beneficiary has received a final trust disclosure
3162	document or a limitation notice if, when the beneficiary is an
3163	adult, it is received by him or her or if, when the beneficiary
3164	is a minor or a disabled person, it is received by his or her
3165	representative as provided in part III of chapter 736 defined in
3166	s. 731.303.
3167	Section 19.  Section 660.418, Florida Statutes, is amended
3168	to read:
3169	660.418  Investment of fiduciary funds in syndicate
3170	securities.--Notwithstanding any other provision of law, any
3171	financial institution with fiduciary powers may, in its
3172	fiduciary capacity, purchase bonds or other securities
3173	underwritten or otherwise distributed by the financial
3174	institution or by a syndicate that includes the financial
3175	institution, or an affiliate of the financial institution,
3176	provided that such purchase is made through a licensed
3177	securities dealer, is otherwise prudent, and is not prohibited
3178	by the instrument governing the fiduciary relationship and that
3179	disclosure is made at least annually to those persons entitled
3180	to a statement of accounts pursuant to s. 736.0813 737.303(4)
3181	indicating that such securities have been or may be purchased.
3182	This section applies to purchases of bonds or other securities
3183	made at the time of the initial offering of such bonds or
3184	securities or at any time after such initial offering.
3185	Section 20.  Subsection (5) of section 689.071, Florida
3186	Statutes, is amended to read:
3187	689.071  Land trusts transferring interests in real estate;
3188	ownership vests in trustee.--
3189	(5)  In addition to any other limitation on personal
3190	liability existing pursuant to statute or otherwise, the
3191	provisions of s. 736.1013 737.306 apply to the trustee of a land
3192	trust created pursuant to this section.
3193	Section 21.  Subsections (1) and (4) of section 689.075,
3194	Florida Statutes, are amended to read:
3195	689.075  Inter vivos trusts; powers retained by settlor.--
3196	(1)  A trust which is otherwise valid and which complies
3197	with s. 736.0403 737.111, including, but not limited to, a trust
3198	the principal of which is composed of real property, intangible
3199	personal property, tangible personal property, the possible
3200	expectancy of receiving as a named beneficiary death benefits as
3201	described in s. 733.808, or any combination thereof, and which
3202	has been created by a written instrument shall not be held
3203	invalid or an attempted testamentary disposition for any one or
3204	more of the following reasons:
3205	(a)  Because the settlor or another person or both possess
3206	the power to revoke, amend, alter, or modify the trust in whole
3207	or in part;
3208	(b)  Because the settlor or another person or both possess
3209	the power to appoint by deed or will the persons and
3210	organizations to whom the income shall be paid or the principal
3211	distributed;
3212	(c)  Because the settlor or another person or both possess
3213	the power to add to, or withdraw from, the trust all or any part
3214	of the principal or income at one time or at different times;
3215	(d)  Because the settlor or another person or both possess
3216	the power to remove the trustee or trustees and appoint a
3217	successor trustee or trustees;
3218	(e)  Because the settlor or another person or both possess
3219	the power to control the trustee or trustees in the
3220	administration of the trust;
3221	(f)  Because the settlor has retained the right to receive
3222	all or part of the income of the trust during her or his life or
3223	for any part thereof; or
3224	(g)  Because the settlor is, at the time of the execution
3225	of the instrument, or thereafter becomes, sole trustee.
3226	(4)  This section shall be applicable to trusts executed
3227	before or after July 1, 1969, by persons who are living on or
3228	after said date. However, the requirement of conformity with the
3229	formalities for the execution of wills as found in paragraph
3230	(1)(g) shall not be imposed upon any trust executed prior to
3231	July 1, 1969.
3232	Section 22.  Section 689.175, Florida Statutes, is created
3233	to read:
3234	689.175  Worthier title doctrine abolished.--The doctrine
3235	of worthier title is abolished as a rule of law and as a rule of
3236	construction. Language in a governing instrument describing the
3237	beneficiaries of a disposition as the transferor's "heirs,"
3238	"heirs at law," "next of kin," "distributees," "relatives," or
3239	"family," or language of similar import, does not create or
3240	presumptively create a reversionary interest in the transferor.
3241	Section 23.  Subsection (8) of section 709.08, Florida
3242	Statutes, is amended to read:
3243	709.08  Durable power of attorney.--
3244	(8)  STANDARD OF CARE.--Except as otherwise provided in
3245	paragraph (4)(e), an attorney in fact is a fiduciary who must
3246	observe the standards of care applicable to trustees as
3247	described in s. 736.0901 737.302. The attorney in fact is not
3248	liable to third parties for any act pursuant to the durable
3249	power of attorney if the act was authorized at the time. If the
3250	exercise of the power is improper, the attorney in fact is
3251	liable to interested persons as described in s. 731.201 for
3252	damage or loss resulting from a breach of fiduciary duty by the
3253	attorney in fact to the same extent as the trustee of an express
3254	trust.
3255	Section 24.  Paragraph (c) of subsection (2) of section
3256	721.08, Florida Statutes, is amended to read:
3257	721.08  Escrow accounts; nondisturbance instruments;
3258	alternate security arrangements; transfer of legal title.--
3259	(2)  One hundred percent of all funds or other property
3260	which is received from or on behalf of purchasers of the
3261	timeshare plan or timeshare interest prior to the occurrence of
3262	events required in this subsection shall be deposited pursuant
3263	to an escrow agreement approved by the division. The funds or
3264	other property may be released from escrow only as follows:
3265	(c)  Compliance with conditions.--
3266	1.  Timeshare licenses.--If the timeshare plan is one in
3267	which timeshare licenses are to be sold and no cancellation or
3268	default has occurred, the escrow agent may release the escrowed
3269	funds or other property to or on the order of the developer upon
3270	presentation of:
3271	a.  An affidavit by the developer that all of the following
3272	conditions have been met:
3273	(I)  Expiration of the cancellation period.
3274	(II)  Completion of construction.
3275	(III)  Closing.
3276	(IV)  Either:
3277	(A)  Execution, delivery, and recordation by each
3278	interestholder of the nondisturbance and notice to creditors
3279	instrument, as described in this section; or
3280	(B)  Transfer by the developer of legal title to the
3281	subject accommodations and facilities, or all use rights
3282	therein, into a trust satisfying the requirements of
3283	subparagraph 4. and the execution, delivery, and recordation by
3284	each other interestholder of the nondisturbance and notice to
3285	creditors instrument, as described in this section.
3286	b.  A certified copy of each recorded nondisturbance and
3287	notice to creditors instrument.
3288	c.  One of the following:
3289	(I)  A copy of a memorandum of agreement, as defined in s.
3290	721.05, together with satisfactory evidence that the original
3291	memorandum of agreement has been irretrievably delivered for
3292	recording to the appropriate official responsible for
3293	maintaining the public records in the county in which the
3294	subject accommodations and facilities are located. The original
3295	memorandum of agreement must be recorded within 180 days after
3296	the date on which the purchaser executed her or his purchase
3297	agreement.
3298	(II)  A notice delivered for recording to the appropriate
3299	official responsible for maintaining the public records in each
3300	county in which the subject accommodations and facilities are
3301	located notifying all persons of the identity of an independent
3302	escrow agent or trustee satisfying the requirements of
3303	subparagraph 4. that shall maintain separate books and records,
3304	in accordance with good accounting practices, for the timeshare
3305	plan in which timeshare licenses are to be sold. The books and
3306	records shall indicate each accommodation and facility that is
3307	subject to such a timeshare plan and each purchaser of a
3308	timeshare license in the timeshare plan.
3309	2.  Timeshare estates.--If the timeshare plan is one in
3310	which timeshare estates are to be sold and no cancellation or
3311	default has occurred, the escrow agent may release the escrowed
3312	funds or other property to or on the order of the developer upon
3313	presentation of:
3314	a.  An affidavit by the developer that all of the following
3315	conditions have been met:
3316	(I)  Expiration of the cancellation period.
3317	(II)  Completion of construction.
3318	(III)  Closing.
3319	b.  If the timeshare estate is sold by agreement for deed,
3320	a certified copy of the recorded nondisturbance and notice to
3321	creditors instrument, as described in this section.
3322	c.  Evidence that each accommodation and facility:
3323	(I)  Is free and clear of the claims of any
3324	interestholders, other than the claims of interestholders that,
3325	through a recorded instrument, are irrevocably made subject to
3326	the timeshare instrument and the use rights of purchasers made
3327	available through the timeshare instrument;
3328	(II)  Is the subject of a recorded nondisturbance and
3329	notice to creditors instrument that complies with subsection (3)
3330	and s. 721.17; or
3331	(III)  Has been transferred into a trust satisfying the
3332	requirements of subparagraph 4.
3333	d.  Evidence that the timeshare estate:
3334	(I)  Is free and clear of the claims of any
3335	interestholders, other than the claims of interestholders that,
3336	through a recorded instrument, are irrevocably made subject to
3337	the timeshare instrument and the use rights of purchasers made
3338	available through the timeshare instrument; or
3339	(II)  Is the subject of a recorded nondisturbance and
3340	notice to creditors instrument that complies with subsection (3)
3341	and s. 721.17.
3342	3.  Personal property timeshare interests.--If the
3343	timeshare plan is one in which personal property timeshare
3344	interests are to be sold and no cancellation or default has
3345	occurred, the escrow agent may release the escrowed funds or
3346	other property to or on the order of the developer upon
3347	presentation of:
3348	a.  An affidavit by the developer that all of the following
3349	conditions have been met:
3350	(I)  Expiration of the cancellation period.
3351	(II)  Completion of construction.
3352	(III)  Closing.
3353	b.  If the personal property timeshare interest is sold by
3354	agreement for transfer, evidence that the agreement for transfer
3355	complies fully with s. 721.06 and this section.
3356	c.  Evidence that one of the following has occurred:
3357	(I)  Transfer by the owner of the underlying personal
3358	property of legal title to the subject accommodations and
3359	facilities or all use rights therein into a trust satisfying the
3360	requirements of subparagraph 4.; or
3361	(II)  Transfer by the owner of the underlying personal
3362	property of legal title to the subject accommodations and
3363	facilities or all use rights therein into an owners' association
3364	satisfying the requirements of subparagraph 5.
3365	d.  Evidence of compliance with the provisions of
3366	subparagraph 6., if required.
3367	e.  If a personal property timeshare plan is created with
3368	respect to accommodations and facilities that are located on or
3369	in an oceangoing vessel, including a "documented vessel" or a
3370	"foreign vessel," as defined and governed by 46 U.S.C., chapter
3371	301:
3372	(I)  In making the transfer required in sub-subparagraph
3373	c., the developer shall use as its transfer instrument a
3374	document that establishes and protects the continuance of the
3375	use rights in the subject accommodations and facilities in a
3376	manner that is enforceable by the trust or owners' association.
3377	(II)  The transfer instrument shall comply fully with the
3378	provisions of this chapter, shall be part of the timeshare
3379	instrument, and shall contain specific provisions that:
3380	(A)  Prohibit the vessel owner, the developer, any manager
3381	or operator of the vessel, the owners' association or the
3382	trustee, the managing entity, or any other person from incurring
3383	any liens against the vessel except for liens that are required
3384	for the operation and upkeep of the vessel, including liens for
3385	fuel expenditures, repairs, crews' wages, and salvage, and
3386	except as provided in sub-sub-subparagraphs 4.b.(III) and
3387	5.b.(III). All expenses, fees, and taxes properly incurred in
3388	connection with the creation, satisfaction, and discharge of any
3389	such permitted lien, or a prorated portion thereof if less than
3390	all of the accommodations on the vessel are subject to the
3391	timeshare plan, shall be common expenses of the timeshare plan.
3392	(B)  Grant a lien against the vessel in favor of the
3393	owners' association or trustee to secure the full and faithful
3394	performance of the vessel owner and developer of all of their
3395	obligations to the purchasers.
3396	(C)  Establish governing law in a jurisdiction that
3397	recognizes and will enforce the timeshare instrument and the
3398	laws of the jurisdiction of registry of the vessel.
3399	(D)  Require that a description of the use rights of
3400	purchasers be posted and displayed on the vessel in a manner
3401	that will give notice of such rights to any party examining the
3402	vessel. This notice must identify the owners' association or
3403	trustee and include a statement disclosing the limitation on
3404	incurring liens against the vessel described in sub-sub-sub-
3405	subparagraph (A).
3406	(E)  Include the nondisturbance and notice to creditors
3407	instrument for the vessel owner and any other interestholders.
3408	(F)  The owners' association created under subparagraph 5.
3409	or trustee created under subparagraph 4. shall have access to
3410	any certificates of classification in accordance with the
3411	timeshare instrument.
3412	(III)  If the vessel is a foreign vessel, the vessel must
3413	be registered in a jurisdiction that permits a filing evidencing
3414	the use rights of purchasers in the subject accommodations and
3415	facilities, offers protection for such use rights against
3416	unfiled and inferior claims, and recognizes the document or
3417	instrument creating such use rights as a lien against the
3418	vessel.
3419	(IV)  In addition to the disclosures required by s.
3420	721.07(5), the public offering statement and purchase contract
3421	must contain a disclosure in conspicuous type in substantially
3422	the following form:
3423
3424	The laws of the State of Florida govern the offering of this
3425	timeshare plan in this state. There are inherent risks in
3426	purchasing a timeshare interest in this timeshare plan because
3427	the accommodations and facilities of the timeshare plan are
3428	located on a vessel that will sail into international waters and
3429	into waters governed by many different jurisdictions. Therefore,
3430	the laws of the State of Florida cannot fully protect your
3431	purchase of an interest in this timeshare plan. Specifically,
3432	management and operational issues may need to be addressed in
3433	the jurisdiction in which the vessel is registered, which is
3434	(insert jurisdiction in which vessel is registered)  . Concerns
3435	of purchasers may be sent to   (insert name of applicable
3436	regulatory agency and address)  .
3437
3438	4.  Trust.--
3439	a.  If the subject accommodations or facilities, or all use
3440	rights therein, are to be transferred into a trust in order to
3441	comply with this paragraph, such transfer shall take place
3442	pursuant to this subparagraph.
3443	b.  Prior to the transfer by each interestholder of the
3444	subject accommodations and facilities, or all use rights
3445	therein, to a trust, any lien or other encumbrance against such
3446	accommodations and facilities, or use rights therein, shall be
3447	made subject to a nondisturbance and notice to creditors
3448	instrument pursuant to subsection (3). No transfer pursuant to
3449	this subparagraph shall become effective until the trustee
3450	accepts such transfer and the responsibilities set forth herein.
3451	A trust established pursuant to this subparagraph shall comply
3452	with the following provisions:
3453	(I)  The trustee shall be an individual or a business
3454	entity authorized and qualified to conduct trust business in
3455	this state. Any corporation authorized to do business in this
3456	state may act as trustee in connection with a timeshare plan
3457	pursuant to this chapter. The trustee must be independent from
3458	any developer or managing entity of the timeshare plan or any
3459	interestholder of any accommodation or facility of such plan.
3460	(II)  The trust shall be irrevocable so long as any
3461	purchaser has a right to occupy any portion of the timeshare
3462	property pursuant to the timeshare plan.
3463	(III)  The trustee shall not convey, hypothecate, mortgage,
3464	assign, lease, or otherwise transfer or encumber in any fashion
3465	any interest in or portion of the timeshare property with
3466	respect to which any purchaser has a right of use or occupancy
3467	unless the timeshare plan is terminated pursuant to the
3468	timeshare instrument, or such conveyance, hypothecation,
3469	mortgage, assignment, lease, transfer, or encumbrance is
3470	approved by a vote of two-thirds of all voting interests of the
3471	timeshare plan and such decision is declared by a court of
3472	competent jurisdiction to be in the best interests of the
3473	purchasers of the timeshare plan. The trustee shall notify the
3474	division in writing within 10 days after receiving notice of the
3475	filing of any petition relating to obtaining such a court order.
3476	The division shall have standing to advise the court of the
3477	division's interpretation of the statute as it relates to the
3478	petition.
3479	(IV)  All purchasers of the timeshare plan or the owners'
3480	association of the timeshare plan shall be the express
3481	beneficiaries of the trust. The trustee shall act as a fiduciary
3482	to the beneficiaries of the trust. The personal liability of the
3483	trustee shall be governed by ss. 736.08125, 736.08163, 736.1013,
3484	and 736.1015 s. 737.306. The agreement establishing the trust
3485	shall set forth the duties of the trustee. The trustee shall be
3486	required to furnish promptly to the division upon request a copy
3487	of the complete list of the names and addresses of the owners in
3488	the timeshare plan and a copy of any other books and records of
3489	the timeshare plan required to be maintained pursuant to s.
3490	721.13 that are in the possession, custody, or control of the
3491	trustee. All expenses reasonably incurred by the trustee in the
3492	performance of its duties, together with any reasonable
3493	compensation of the trustee, shall be common expenses of the
3494	timeshare plan.
3495	(V)  The trustee shall not resign upon less than 90 days'
3496	prior written notice to the managing entity and the division. No
3497	resignation shall become effective until a substitute trustee,
3498	approved by the division, is appointed by the managing entity
3499	and accepts the appointment.
3500	(VI)  The documents establishing the trust arrangement
3501	shall constitute a part of the timeshare instrument.
3502	(VII)  For trusts holding property in a timeshare plan
3503	located outside this state, the trust and trustee holding such
3504	property shall be deemed in compliance with the requirements of
3505	this subparagraph if such trust and trustee are authorized and
3506	qualified to conduct trust business under the laws of such
3507	jurisdiction and the agreement or law governing such trust
3508	arrangement provides substantially similar protections for the
3509	purchaser as are required in this subparagraph for trusts
3510	holding property in a timeshare plan in this state.
3511	(VIII)  The trustee shall have appointed a registered agent
3512	in this state for service of process. In the event such a
3513	registered agent is not appointed, service of process may be
3514	served pursuant to s. 721.265.
3515	5.  Owners' association.--
3516	a.  If the subject accommodations or facilities, or all use
3517	rights therein, are to be transferred into an owners'
3518	association in order to comply with this paragraph, such
3519	transfer shall take place pursuant to this subparagraph.
3520	b.  Prior to the transfer by each interestholder of the
3521	subject accommodations and facilities, or all use rights
3522	therein, to an owners' association, any lien or other
3523	encumbrance against such accommodations and facilities, or use
3524	rights therein, shall be made subject to a nondisturbance and
3525	notice to creditors instrument pursuant to subsection (3). No
3526	transfer pursuant to this subparagraph shall become effective
3527	until the owners' association accepts such transfer and the
3528	responsibilities set forth herein. An owners' association
3529	established pursuant to this subparagraph shall comply with the
3530	following provisions:
3531	(I)  The owners' association shall be a business entity
3532	authorized and qualified to conduct business in this state.
3533	Control of the board of directors of the owners' association
3534	must be independent from any developer or managing entity of the
3535	timeshare plan or any interestholder.
3536	(II)  The bylaws of the owners' association shall provide
3537	that the corporation may not be voluntarily dissolved without
3538	the unanimous vote of all owners of personal property timeshare
3539	interests so long as any purchaser has a right to occupy any
3540	portion of the timeshare property pursuant to the timeshare
3541	plan.
3542	(III)  The owners' association shall not convey,
3543	hypothecate, mortgage, assign, lease, or otherwise transfer or
3544	encumber in any fashion any interest in or portion of the
3545	timeshare property with respect to which any purchaser has a
3546	right of use or occupancy, unless the timeshare plan is
3547	terminated pursuant to the timeshare instrument, or unless such
3548	conveyance, hypothecation, mortgage, assignment, lease,
3549	transfer, or encumbrance is approved by a vote of two-thirds of
3550	all voting interests of the association and such decision is
3551	declared by a court of competent jurisdiction to be in the best
3552	interests of the purchasers of the timeshare plan. The owners'
3553	association shall notify the division in writing within 10 days
3554	after receiving notice of the filing of any petition relating to
3555	obtaining such a court order. The division shall have standing
3556	to advise the court of the division's interpretation of the
3557	statute as it relates to the petition.
3558	(IV)  All purchasers of the timeshare plan shall be members
3559	of the owners' association and shall be entitled to vote on
3560	matters requiring a vote of the owners' association as provided
3561	in this chapter or the timeshare instrument. The owners'
3562	association shall act as a fiduciary to the purchasers of the
3563	timeshare plan. The articles of incorporation establishing the
3564	owners' association shall set forth the duties of the owners'
3565	association. All expenses reasonably incurred by the owners'
3566	association in the performance of its duties, together with any
3567	reasonable compensation of the officers or directors of the
3568	owners' association, shall be common expenses of the timeshare
3569	plan.
3570	(V)  The documents establishing the owners' association
3571	shall constitute a part of the timeshare instrument.
3572	(VI)  For owners' associations holding property in a
3573	timeshare plan located outside this state, the owners'
3574	association holding such property shall be deemed in compliance
3575	with the requirements of this subparagraph if such owners'
3576	association is authorized and qualified to conduct owners'
3577	association business under the laws of such jurisdiction and the
3578	agreement or law governing such arrangement provides
3579	substantially similar protections for the purchaser as are
3580	required in this subparagraph for owners' associations holding
3581	property in a timeshare plan in this state.
3582	(VII)  The owners' association shall have appointed a
3583	registered agent in this state for service of process. In the
3584	event such a registered agent cannot be located, service of
3585	process may be made pursuant to s. 721.265.
3586	6.  Personal property subject to certificate of title.--If
3587	any personal property that is an accommodation or facility of a
3588	timeshare plan is subject to a certificate of title in this
3589	state pursuant to chapter 319 or chapter 328, the following
3590	notation must be made on such certificate of title pursuant to
3591	s. 319.27(1) or s. 328.15(1):
3592
3593	The further transfer or encumbrance of the property subject to
3594	this certificate of title, or any lien or encumbrance thereon,
3595	is subject to the requirements of section 721.17, Florida
3596	Statutes, and the transferee or lienor agrees to be bound by all
3597	of the obligations set forth therein.
3598	7.  If the developer has previously provided a certified
3599	copy of any document required by this paragraph, she or he may
3600	for all subsequent disbursements substitute a true and correct
3601	copy of the certified copy, provided no changes to the document
3602	have been made or are required to be made.
3603	8.  In the event that use rights relating to an
3604	accommodation or facility are transferred into a trust pursuant
3605	to subparagraph 4. or into an owners' association pursuant to
3606	subparagraph 5., all other interestholders, including the owner
3607	of the underlying fee or underlying personal property, must
3608	execute a nondisturbance and notice to creditors instrument
3609	pursuant to subsection (3).
3610	Section 25.  Paragraph (e) of subsection (1) of section
3611	721.53, Florida Statutes, is amended to read:
3612	721.53  Subordination instruments; alternate security
3613	arrangements.--
3614	(1)  With respect to each accommodation or facility of a
3615	multisite timeshare plan, the developer shall provide the
3616	division with satisfactory evidence that one of the following
3617	has occurred with respect to each interestholder prior to
3618	offering the accommodation or facility as a part of the
3619	multisite timeshare plan:
3620	(e)  The interestholder has transferred the subject
3621	accommodation or facility or all use rights therein to a trust
3622	that complies with this paragraph. Prior to such transfer, any
3623	lien or other encumbrance against such accommodation or facility
3624	shall be made subject to a nondisturbance and notice to
3625	creditors instrument pursuant to paragraph (a) or a
3626	subordination and notice to creditors instrument pursuant to
3627	paragraph (b). No transfer pursuant to this paragraph shall
3628	become effective until the trust accepts such transfer and the
3629	responsibilities set forth herein. A trust established pursuant
3630	to this paragraph shall comply with the following provisions:
3631	1.  The trustee shall be an individual or a business entity
3632	authorized and qualified to conduct trust business in this
3633	state. Any corporation authorized to do business in this state
3634	may act as trustee in connection with a timeshare plan pursuant
3635	to this chapter. The trustee must be independent from any
3636	developer or managing entity of the timeshare plan or any
3637	interestholder of any accommodation or facility of such plan.
3638	The same trustee may hold the accommodations and facilities, or
3639	use rights therein, for one or more of the component sites of
3640	the timeshare plan.
3641	2.  The trust shall be irrevocable so long as any purchaser
3642	has a right to occupy any portion of the timeshare property
3643	pursuant to the timeshare plan.
3644	3.  The trustee shall not convey, hypothecate, mortgage,
3645	assign, lease, or otherwise transfer or encumber in any fashion
3646	any interests in or portion of the timeshare property with
3647	respect to which any purchaser has a right of use or occupancy
3648	unless the timeshare plan is terminated pursuant to the
3649	timeshare instrument, or the timeshare property held in trust is
3650	deleted from a multisite timeshare plan pursuant to s.
3651	721.552(3), or such conveyance, hypothecation, mortgage,
3652	assignment, lease, transfer, or encumbrance is approved by vote
3653	of two-thirds of all voting interests of the timeshare plan and
3654	such decision is declared by a court of competent jurisdiction
3655	to be in the best interests of the purchasers of the timeshare
3656	plan.
3657	4.  All purchasers of the timeshare plan or the owners'
3658	association of the timeshare plan shall be express beneficiaries
3659	of the trust. The trustee shall act as a fiduciary to the
3660	beneficiaries of the trust. The personal liability of the
3661	trustee shall be governed by ss. 736.08125, 736.08163, 736.1013,
3662	and 736.1015 s. 737.306. The agreement establishing the trust
3663	shall set forth the duties of the trustee. The trustee shall be
3664	required to furnish promptly to the division upon request a copy
3665	of the complete list of the names and addresses of the owners in
3666	the timeshare plan and a copy of any other books and records of
3667	the timeshare plan required to be maintained pursuant to s.
3668	721.13 that are in the possession of the trustee. All expenses
3669	reasonably incurred by the trustee in the performance of its
3670	duties, together with any reasonable compensation of the
3671	trustee, shall be common expenses of the timeshare plan.
3672	5.  The trustee shall not resign upon less than 90 days'
3673	prior written notice to the managing entity and the division. No
3674	resignation shall become effective until a substitute trustee,
3675	approved by the division, is appointed by the managing entity
3676	and accepts the appointment.
3677	6.  The documents establishing the trust arrangement shall
3678	constitute a part of the timeshare instrument.
3679	7.  For trusts holding property in component sites located
3680	outside this state, the trust holding such property shall be
3681	deemed in compliance with the requirements of this paragraph, if
3682	such trust is authorized and qualified to conduct trust business
3683	under the laws of such jurisdiction and the agreement or law
3684	governing such trust arrangement provides substantially similar
3685	protections for the purchaser as are required in this paragraph
3686	for trusts holding property in a component site located in this
3687	state.
3688	8.  The trustee shall have appointed a registered agent in
3689	this state for service of process. In the event such a
3690	registered agent is not appointed, service of process may be
3691	served pursuant to s. 721.265.
3692	Section 26.  Section 731.103, Florida Statutes, is amended
3693	to read:
3694	731.103  Evidence as to death or status.--In proceedings
3695	under this code and under chapter 736, the rules of evidence in
3696	civil actions are applicable unless specifically changed by the
3697	code. The following additional rules relating to determination
3698	of death and status are applicable:
3699	(1)  An authenticated copy of a death certificate issued by
3700	an official or agency of the place where the death purportedly
3701	occurred is prima facie proof of the fact, place, date, and time
3702	of death and the identity of the decedent.
3703	(2)  A copy of any record or report of a governmental
3704	agency, domestic or foreign, that a person is alive, missing,
3705	detained, or, from the facts related, presumed dead is prima
3706	facie evidence of the status and of the dates, circumstances,
3707	and places disclosed by the record or report.
3708	(3)  A person who is absent from the place of his or her
3709	last known domicile for a continuous period of 5 years and whose
3710	absence is not satisfactorily explained after diligent search
3711	and inquiry is presumed to be dead. The person's death is
3712	presumed to have occurred at the end of the period unless there
3713	is evidence establishing that death occurred earlier. Evidence
3714	showing that the absent person was exposed to a specific peril
3715	of death may be a sufficient basis for the court determining at
3716	any time after such exposure that he or she died less than 5
3717	years after the date on which his or her absence commenced. A
3718	petition for this determination shall be filed in the county in
3719	Florida where the decedent maintained his or her domicile or in
3720	any county of this state if the decedent was not a resident of
3721	Florida at the time his or her absence commenced.
3722	(4)  This section does not preclude the establishment of
3723	death by direct or circumstantial evidence prior to expiration
3724	of the 5-year time period set forth in subsection (3).
3725	Section 27.  Section 731.1035, Florida Statutes, is created
3726	to read:
3727	731.1035  Applicable rules of evidence.--In proceedings
3728	under this code, the rules of evidence in civil actions are
3729	applicable unless specifically changed by the code.
3730	Section 28.  Section 731.201, Florida Statutes, is amended
3731	to read:
3732	731.201  General definitions.--Subject to additional
3733	definitions in subsequent chapters that are applicable to
3734	specific chapters or parts, and unless the context otherwise
3735	requires, in this code, in s. 409.9101, and in chapters 736 737,
3736	738, 739, and 744, the term:
3737	(1)  "Authenticated," when referring to copies of documents
3738	or judicial proceedings required to be filed with the court
3739	under this code, means a certified copy or a copy authenticated
3740	according to the Federal Rules of Civil Procedure.
3741	(2)  "Beneficiary" means heir at law in an intestate estate
3742	and devisee in a testate estate. The term "beneficiary" does not
3743	apply to an heir at law or a devisee after that person's
3744	interest in the estate has been satisfied. In the case of a
3745	devise to an existing trust or trustee, or to a trust or trustee
3746	described by will, the trustee is a beneficiary of the estate.
3747	Except as otherwise provided in this subsection, the beneficiary
3748	of the trust is not a beneficiary of the estate of which that
3749	trust or the trustee of that trust is a beneficiary. However, if
3750	each trustee is also a personal representative of the estate,
3751	each qualified beneficiary the beneficiary or beneficiaries of
3752	the trust as defined in s. 736.0103(14) 737.303(4)(b) shall be
3753	regarded as a beneficiary of the estate.
3754	(3)  "Child" includes a person entitled to take as a child
3755	under this code by intestate succession from the parent whose
3756	relationship is involved, and excludes any person who is only a
3757	stepchild, a foster child, a grandchild, or a more remote
3758	descendant.
3759	(4)  "Claim" means a liability of the decedent, whether
3760	arising in contract, tort, or otherwise, and funeral expense.
3761	The term does not include an expense of administration or
3762	estate, inheritance, succession, or other death taxes.
3763	(5)  "Clerk" means the clerk or deputy clerk of the court.
3764	(6)  "Court" means the circuit court.
3765	(7)  "Curator" means a person appointed by the court to
3766	take charge of the estate of a decedent until letters are
3767	issued.
3768	(8)  "Devise," when used as a noun, means a testamentary
3769	disposition of real or personal property and, when used as a
3770	verb, means to dispose of real or personal property by will or
3771	trust. The term includes "gift," "give," "bequeath," "bequest,"
3772	and "legacy." A devise is subject to charges for debts,
3773	expenses, and taxes as provided in this code, the will, or the
3774	trust.
3775	(9)  "Devisee" means a person designated in a will or trust
3776	to receive a devise. Except as otherwise provided in this
3777	subsection, in the case of a devise to an existing trust or
3778	trustee, or to a trust or trustee of a trust described by will,
3779	the trust or trustee, rather than the beneficiaries of the
3780	trust, is the devisee. However, if each trustee is also a
3781	personal representative of the estate, each qualified
3782	beneficiary the beneficiary or beneficiaries of the trust as
3783	defined in s. 736.0103(14) 737.303(4)(b) shall be regarded as a
3784	devisee.
3785	(10)  "Distributee" means a person who has received estate
3786	property from a personal representative or other fiduciary other
3787	than as a creditor or purchaser. A testamentary trustee is a
3788	distributee only to the extent of distributed assets or
3789	increments to them remaining in the trustee's hands. A
3790	beneficiary of a testamentary trust to whom the trustee has
3791	distributed property received from a personal representative is
3792	a distributee. For purposes of this provision, "testamentary
3793	trustee" includes a trustee to whom assets are transferred by
3794	will, to the extent of the devised assets.
3795	(11)  "Domicile" means a person's usual place of dwelling
3796	and shall be synonymous with residence.
3797	(12)  "Estate" means the property of a decedent that is the
3798	subject of administration.
3799	(13)  "Exempt property" means the property of a decedent's
3800	estate which is described in s. 732.402.
3801	(14)  "File" means to file with the court or clerk.
3802	(15)  "Foreign personal representative" means a personal
3803	representative of another state or a foreign country.
3804	(16)  "Formal notice" means formal notice under the Florida
3805	Probate Rules.
3806	(17)  "Grantor" means one who creates or adds to a trust
3807	and includes "settlor" or "trustor" and a testator who creates
3808	or adds to a trust.
3809	(18)  "Heirs" or "heirs at law" means those persons,
3810	including the surviving spouse, who are entitled under the
3811	statutes of intestate succession to the property of a decedent.
3812	(19)  "Incompetent" means a minor or a person adjudicated
3813	incompetent.
3814	(20)  "Informal notice" or "notice" means informal notice
3815	under the Florida Probate Rules.
3816	(21)  "Interested person" means any person who may
3817	reasonably be expected to be affected by the outcome of the
3818	particular proceeding involved. In any proceeding affecting the
3819	estate or the rights of a beneficiary in the estate, the
3820	personal representative of the estate shall be deemed to be an
3821	interested person. In any proceeding affecting the expenses of
3822	the administration and obligations of a decedent's estate, or
3823	any claims described in s. 733.702(1), the trustee of a trust
3824	described in s. 733.707(3) is an interested person in the
3825	administration of the grantor's estate. The term does not
3826	include a beneficiary who has received complete distribution.
3827	The meaning, as it relates to particular persons, may vary from
3828	time to time and must be determined according to the particular
3829	purpose of, and matter involved in, any proceedings.
3830	(22)  "Letters" means authority granted by the court to the
3831	personal representative to act on behalf of the estate of the
3832	decedent and refers to what has been known as letters
3833	testamentary and letters of administration. All letters shall be
3834	designated "letters of administration."
3835	(23)  "Other state" means any state of the United States
3836	other than Florida and includes the District of Columbia, the
3837	Commonwealth of Puerto Rico, and any territory or possession
3838	subject to the legislative authority of the United States.
3839	(24)  "Parent" excludes any person who is only a
3840	stepparent, foster parent, or grandparent.
3841	(25)  "Personal representative" means the fiduciary
3842	appointed by the court to administer the estate and refers to
3843	what has been known as an administrator, administrator cum
3844	testamento annexo, administrator de bonis non, ancillary
3845	administrator, ancillary executor, or executor.
3846	(26)  "Petition" means a written request to the court for
3847	an order.
3848	(27)  "Power of appointment" means an authority, other than
3849	as an incident of the beneficial ownership of property, to
3850	designate recipients of beneficial interests in property.
3851	(28)(27)  "Probate of will" means all steps necessary to
3852	establish the validity of a will and to admit a will to probate.
3853	(29)(28)  "Property" means both real and personal property
3854	or any interest in it and anything that may be the subject of
3855	ownership.
3856	(30)(29)  "Protected homestead" means the property
3857	described in s. 4(a)(1), Art. X of the State Constitution on
3858	which at the death of the owner the exemption inures to the
3859	owner's surviving spouse or heirs under s. 4(b), Art. X of the
3860	State Constitution. For purposes of the code, real property
3861	owned as tenants by the entirety is not protected homestead.
3862	(31)(30)  "Residence" means a person's place of dwelling.
3863	(32)(31)  "Residuary devise" means a devise of the assets
3864	of the estate which remain after the provision for any devise
3865	which is to be satisfied by reference to a specific property or
3866	type of property, fund, sum, or statutory amount. If the will
3867	contains no devise which is to be satisfied by reference to a
3868	specific property or type of property, fund, sum, or statutory
3869	amount, "residuary devise" or "residue" means a devise of all
3870	assets remaining after satisfying the obligations of the estate.
3871	(33)(32)  "Security" means a security as defined in s.
3872	517.021.
3873	(34)(33)  "Security interest" means a security interest as
3874	defined in s. 671.201.
3875	(35)(34)  "Trust" means an express trust, private or
3876	charitable, with additions to it, wherever and however created.
3877	It also includes a trust created or determined by a judgment or
3878	decree under which the trust is to be administered in the manner
3879	of an express trust. "Trust" excludes other constructive trusts,
3880	and it excludes resulting trusts; conservatorships; custodial
3881	arrangements pursuant to the Florida Uniform Transfers to Minors
3882	Act; business trusts providing for certificates to be issued to
3883	beneficiaries; common trust funds; land trusts under s. 689.05;
3884	trusts created by the form of the account or by the deposit
3885	agreement at a financial institution; voting trusts; security
3886	arrangements; liquidation trusts; trusts for the primary purpose
3887	of paying debts, dividends, interest, salaries, wages, profits,
3888	pensions, or employee benefits of any kind; and any arrangement
3889	under which a person is nominee or escrowee for another.
3890	(36)(35)  "Trustee" includes an original, additional,
3891	surviving, or successor trustee, whether or not appointed or
3892	confirmed by court.
3893	(37)(36)  "Will" means an instrument, including a codicil,
3894	executed by a person in the manner prescribed by this code,
3895	which disposes of the person's property on or after his or her
3896	death and includes an instrument which merely appoints a
3897	personal representative or revokes or revises another will.
3898	Section 29.  Paragraph (a) of subsection (1) and subsection
3899	(5) of section 731.303, Florida Statutes, are amended to read:
3900	731.303  Representation.--In the administration of or in
3901	judicial proceedings involving estates of decedents or trusts,
3902	the following apply:
3903	(1)  Persons are bound by orders binding others in the
3904	following cases:
3905	(a)1.  Orders binding the sole holder or all coholders of a
3906	power of revocation or a general, special, or limited power of
3907	appointment, including one in the form of a power of amendment
3908	or revocation to the extent that the power has not become
3909	unexercisable in fact, bind all persons to the extent that their
3910	interests, as persons who may take by virtue of the exercise or
3911	nonexercise of the power, are subject to the power.
3912	2.  Subparagraph 1. does not apply to:
3913	a.  Any matter determined by the court to involve fraud or
3914	bad faith by the trustee;
3915	b.  A power of a trustee to distribute trust property; or
3916	c.  A power of appointment held by a person while the
3917	person is the sole trustee.
3918	(5)  The holder of a power of appointment over property not
3919	held in trust may represent and bind persons whose interests, as
3920	permissible appointees, takers in default, or otherwise, are
3921	subject to the power. Representation under this subsection does
3922	not apply to:
3923	(a)  Any matter determined by the court to involve fraud or
3924	bad faith by the trustee;
3925	(b)  A power of a trustee to distribute trust property; or
3926	(c)  A power of appointment held by a person while the
3927	person is the sole trustee When a sole holder or coholder of a
3928	general, special, or limited power of appointment, including an
3929	exercisable power of amendment or revocation over property in an
3930	estate or trust, is bound by:
3931	(a)  Agreements, waivers, consents, or approvals; or
3932	(b)  Accounts, trust accountings, or other written reports
3933	that adequately disclose matters set forth therein,
3934
3935	then all persons who may take by virtue of, and whose interests
3936	are subject to, the exercise or nonexercise of the power are
3937	also bound, but only to the extent of their interests which
3938	could otherwise be affected by the exercise or nonexercise of
3939	the power.
3940	Section 30.  Subsection (5) of section 732.2075, Florida
3941	Statutes, is amended to read:
3942	732.2075  Sources from which elective share payable;
3943	abatement.--
3944	(5)  Unless otherwise provided in the trust instrument or,
3945	in the decedent's will if there is no provision in the trust
3946	instrument, any amount to be satisfied from trust property shall
3947	be paid from the assets of the trust in the order provided for
3948	claims under s. 736.05053 737.3054(2) and (3). A direction in
3949	the decedent's will is effective only for revocable trusts.
3950	Section 31.  Subsection (2) of section 732.513, Florida
3951	Statutes, is amended to read:
3952	732.513  Devises to trustee.--
3953	(2)  The devise shall not be invalid for any or all of the
3954	following reasons:
3955	(a)  Because the trust is amendable or revocable, or both,
3956	by any person.
3957	(b)  Because the trust has been amended or revoked in part
3958	after execution of the will or a codicil to it.
3959	(c)  Because the trust instrument or any amendment to it
3960	was not executed in the manner required for wills.
3961	(c)(d)  Because the only res of the trust is the possible
3962	expectancy of receiving, as a named beneficiary, a devise under
3963	a will or death benefits as described in s. 733.808, and even
3964	though the testator or other person has reserved any or all
3965	rights of ownership in the death benefit policy, contract, or
3966	plan, including the right to change the beneficiary.
3967	(d)(e)  Because of any of the provisions of s. 689.075.
3968	Section 32.  Section 732.603, Florida Statutes, is amended
3969	to read:
3970	(Substantial rewording of section. See
3971	s. 732.603, F.S., for present text.)
3972	732.603  Antilapse; deceased devisee; class gifts.--
3973	(1)  Unless a contrary intent appears in the will, if a
3974	devisee who is a grandparent, or a descendant of a grandparent,
3975	of the testator:
3976	(a)  Is dead at the time of the execution of the will;
3977	(b)  Fails to survive the testator; or
3978	(c)  Is required by the will or by operation of law to be
3979	treated as having predeceased the testator,
3980
3981	a substitute gift is created in the devisee's surviving
3982	descendants who take per stirpes the property to which the
3983	devisee would have been entitled had the devisee survived the
3984	testator.
3985	(2)  When a power of appointment is exercised by will,
3986	unless a contrary intent appears in the document creating the
3987	power of appointment or in the testator's will, if an appointee
3988	who is a grandparent, or a descendant of a grandparent, of the
3989	donor of the power:
3990	(a)  Is dead at the time of the execution of the will or
3991	the creation of the power;
3992	(b)  Fails to survive the testator; or
3993	(c)  Is required by the will, the document creating the
3994	power, or by operation of law to be treated as having
3995	predeceased the testator,
3996
3997	a substitute gift is created in the appointee's surviving
3998	descendants who take per stirpes the property to which the
3999	appointee would have been entitled had the appointee survived
4000	the testator. Unless the language creating a power of
4001	appointment expressly excludes the substitution of the
4002	descendants of an object of a power for the object, a surviving
4003	descendant of a deceased object of a power of appointment may be
4004	substituted for the object whether or not the descendant is an
4005	object of the power.
4006	(3)  In the application of this section:
4007	(a)  Words of survivorship in a devise or appointment to an
4008	individual, such as "if he survives me," or to "my surviving
4009	children," are a sufficient indication of an intent contrary to
4010	the application of subsections (1) and (2). Words of
4011	survivorship used by the donor of the power in a power to
4012	appoint to an individual, such as "if he survives the donee," or
4013	in a power to appoint to the donee's "then surviving children,"
4014	are a sufficient indication of an intent contrary to the
4015	application of subsection (2).
4016	(b)  The term:
4017	1.  "Appointment" includes an alternative appointment and
4018	an appointment in the form of a class gift.
4019	2.  "Appointee" includes:
4020	a.  A class member if the appointment is in the form of a
4021	class gift.
4022	b.  An individual or class member who was deceased at the
4023	time the testator executed his or her will as well as an
4024	individual or class member who was then living but who failed to
4025	survive the testator.
4026	3.  "Devise" also includes an alternative devise and a
4027	devise in the form of a class gift.
4028	4.  "Devisee" also includes:
4029	a.  A class member if the devise is in the form of a class
4030	gift.
4031	b.  An individual or class member who was deceased at the
4032	time the testator executed his or her will as well as an
4033	individual or class member who was then living but who failed to
4034	survive the testator.
4035	(4)  This section applies only to outright devises and
4036	appointments. Devises and appointments in trust, including to a
4037	testamentary trust, are subject to s. 736.1106.
4038	Section 33.  Section 732.604, Florida Statutes, is amended
4039	to read:
4040	732.604  Failure of testamentary provision.--
4041	(1)  Except as provided in s. 732.603, if a devise other
4042	than a residuary devise fails for any reason, it becomes a part
4043	of the residue.
4044	(2)  Except as provided in s. 732.603, if the residue is
4045	devised to two or more persons, the share of a residuary devisee
4046	that fails for any reason and the devise to one of the residuary
4047	devisees fails for any reason, that devise passes to the other
4048	residuary devisee, or to the other residuary devisees in
4049	proportion to the their interests of each in the remaining part
4050	of the residue.
4051	Section 34.  Section 732.611, Florida Statutes, is amended
4052	to read:
4053	732.611  Devises to multigeneration classes to be per
4054	stirpes.--Unless the will provides otherwise, all devises to
4055	descendants, issue, and other multigeneration classes shall be
4056	per stirpes.
4057	Section 35.  Subsection (1) of section 733.212, Florida
4058	Statutes, is amended to read:
4059	733.212  Notice of administration; filing of objections.--
4060	(1)  The personal representative shall promptly serve a
4061	copy of the notice of administration on the following persons
4062	who are known to the personal representative:
4063	(a)  The decedent's surviving spouse;
4064	(b)  Beneficiaries;
4065	(c)  The trustee of any trust described in s. 733.707(3)
4066	and each qualified beneficiary of the trust as defined in s.
4067	736.0103(14) 737.303(4)(b), if each trustee is also a personal
4068	representative of the estate; and
4069	(d)  Persons who may be entitled to exempt property
4070
4071	in the manner provided for service of formal notice, unless
4072	served under s. 733.2123. The personal representative may
4073	similarly serve a copy of the notice on any devisees under a
4074	known prior will or heirs or others who claim or may claim an
4075	interest in the estate.
4076	Section 36.  Subsection (1) of section 733.602, Florida
4077	Statutes, is amended to read:
4078	733.602  General duties.--
4079	(1)  A personal representative is a fiduciary who shall
4080	observe the standards of care applicable to trustees as
4081	described by part VII of chapter 736 s. 737.302. A personal
4082	representative is under a duty to settle and distribute the
4083	estate of the decedent in accordance with the terms of the
4084	decedent's will and this code as expeditiously and efficiently
4085	as is consistent with the best interests of the estate. A
4086	personal representative shall use the authority conferred by
4087	this code, the authority in the will, if any, and the authority
4088	of any order of the court, for the best interests of interested
4089	persons, including creditors.
4090	Section 37.  Subsection (4) of section 733.805, Florida
4091	Statutes, is amended to read:
4092	733.805  Order in which assets abate.--
4093	(4)  In determining the contribution required under s.
4094	733.607(2), subsections (1)-(3) of this section and s. 736.05053
4095	737.3054(2) shall be applied as if the beneficiaries of the
4096	estate and the beneficiaries of a trust described in s.
4097	733.707(3), other than the estate or trust itself, were taking
4098	under a common instrument.
4099	Section 38.  Paragraph (j) of subsection (1) of section
4100	733.817, Florida Statutes, is amended to read:
4101	733.817  Apportionment of estate taxes.--
4102	(1)  For purposes of this section:
4103	(j)  "Residuary devise" has the meaning set forth in s.
4104	731.201(31).
4105	Section 39.  Paragraphs (a) and (f) of subsection (8) and
4106	paragraphs (a) and (d) of subsection (9) of section 738.104,
4107	Florida Statutes, are amended to read:
4108	738.104  Trustee's power to adjust.--
4109	(8)  With respect to a trust in existence on January 1,
4110	2003:
4111	(a)  A trustee shall not have the power to adjust under
4112	this section until the statement required in subsection (9) is
4113	provided and either no objection is made or any objection which
4114	is made has been terminated.
4115	1.  An objection is made if, within 60 days after the date
4116	of the statement required in subsection (9), a super majority of
4117	the eligible trust beneficiaries deliver to the trustee a
4118	written objection to the application of this section to such
4119	trust. An objection shall be deemed to be delivered to the
4120	trustee on the date the objection is mailed to the mailing
4121	address listed in the notice provided in subsection (9).
4122	2.  An objection is terminated upon the earlier of the
4123	receipt of consent from a super majority of eligible trust
4124	beneficiaries of the class that made the objection, or the
4125	resolution of the objection pursuant to paragraph (c).
4126	(f)  The objection of a super majority of eligible
4127	beneficiaries under this subsection shall be valid for a period
4128	of 1 year after the date of the notice set forth in subsection
4129	(9). Upon expiration of the objection, the trustee may
4130	thereafter give a new notice under subsection (9).
4131	(9)(a)  A trustee of a trust in existence on January 1,
4132	2003, that is not prohibited under subsection (3) from
4133	exercising the power to adjust shall, any time prior to
4134	initially exercising the power, provide to all eligible
4135	reasonably ascertainable current beneficiaries described in s.
4136	737.303(4)(b)1. and all reasonably ascertainable remainder
4137	beneficiaries described in s. 737.303(4)(b)2. a statement
4138	containing the following:
4139	1.  The name, telephone number, street address, and mailing
4140	address of the trustee and of any individuals who may be
4141	contacted for further information;
4142	2.  A statement that unless a super majority of the
4143	eligible beneficiaries objects to the application of this
4144	section to the trust within 60 days after the date the statement
4145	pursuant to this subsection was served, s. 738.104 shall apply
4146	to the trust; and
4147	3.  A statement that, if s. 738.104 applies to the trust,
4148	the trustee will have the power to adjust between income and
4149	principal and that such a power may have an effect on the
4150	distributions to such beneficiary from the trust.
4151	(d)  For purposes of subsection (8) and this subsection,
4152	the term:
4153	1.  "Eligible beneficiaries" means:
4154	a.  If at the time the determination is made there is one
4155	or more beneficiaries described in s. 736.0103(14)(c), the
4156	beneficiaries described in s. 736.0103(14)(a) and (c); or
4157	b.  If there is no beneficiary described in s.
4158	736.0103(14)(c), the beneficiaries described in s.
4159	736.0103(14)(a) and (b).
4160	2.  A "Super majority of the eligible trust beneficiaries"
4161	means:
4162	a.  If at the time the determination is made there is one
4163	or more beneficiaries described in s. 736.0103(14)(c), at least
4164	two-thirds in interest of the reasonably ascertainable current
4165	beneficiaries described in s. 736.0103(14)(a) 737.303(4)(b)1. or
4166	two-thirds in interest of the reasonably ascertainable remainder
4167	beneficiaries described in s. 736.0103(14)(c) 737.303(4)(b)2.,
4168	if the interests of the beneficiaries are reasonably
4169	ascertainable; otherwise, it means two-thirds in number of
4170	either such class; or
4171	b.  If there is no beneficiary described in s.
4172	736.0103(14)(c), at least two-thirds in interest of the
4173	beneficiaries described in s. 736.0103(14)(a) or two-thirds in
4174	interest of the beneficiaries described in s. 736.0103(14)(b),
4175	if the interests of the beneficiaries are reasonably
4176	ascertainable, otherwise, two-thirds in number of either such
4177	class.
4178	Section 40.  Subsection (4) of section 738.1041, Florida
4179	Statutes, is amended to read:
4180	738.1041  Total return unitrust.--
4181	(4)  All determinations made pursuant to sub-subparagraph
4182	(2)(b)2.b. shall be conclusive if reasonable and made in good
4183	faith. Such determination shall be conclusively presumed to have
4184	been made reasonably and in good faith unless proven otherwise
4185	in a proceeding commenced by or on behalf of a person interested
4186	in the trust within the time provided in s. 736.1008 737.307.
4187	The burden will be on the objecting interested party to prove
4188	that the determinations were not made reasonably and in good
4189	faith.
4190	Section 41.  Subsection (5) of section 738.202, Florida
4191	Statutes, is amended to read:
4192	738.202  Distribution to residuary and remainder
4193	beneficiaries.--
4194	(5)  The value of trust assets shall be determined on an
4195	asset-by-asset basis and shall be conclusive if reasonable and
4196	determined in good faith. Determinations based on appraisals
4197	performed within 2 years before or after the valuation date
4198	shall be presumed reasonable. The value of trust assets shall be
4199	conclusively presumed to be reasonable and determined in good
4200	faith unless proven otherwise in a proceeding commenced by or on
4201	behalf of a person interested in the trust within the time
4202	provided in s. 736.1008 737.307.
4203	Section 42.  Paragraph (a) of subsection (12) of section
4204	739.102, Florida Statutes, is amended to read:
4205	739.102  Definitions.--As used in this chapter, the term:
4206	(12)  "Trust" means:
4207	(a)  An express trust (including an honorary trust or a
4208	trust under s. 736.0408 737.116), charitable or noncharitable,
4209	with additions thereto, whenever and however created; and
4210
4211	As used in this chapter, the term "trust" does not include a
4212	constructive trust or a resulting trust.
4213	Section 43.  Paragraphs (b) and (f) of subsection (6) of
4214	section 744.331, Florida Statutes, are amended to read:
4215	744.331  Procedures to determine incapacity.--
4216	(6)  ORDER DETERMINING INCAPACITY.--If, after making
4217	findings of fact on the basis of clear and convincing evidence,
4218	the court finds that a person is incapacitated with respect to
4219	the exercise of a particular right, or all rights, the court
4220	shall enter a written order determining such incapacity. A
4221	person is determined to be incapacitated only with respect to
4222	those rights specified in the order.
4223	(b)  When an order determines that a person is incapable of
4224	exercising delegable rights, the court must consider and find
4225	whether there is an alternative to guardianship which will
4226	sufficiently address the problems of the incapacitated person. A
4227	guardian must be appointed to exercise the incapacitated
4228	person's delegable rights unless the court finds there is an
4229	alternative. A guardian may not be appointed if the court finds
4230	there is an alternative to guardianship which will sufficiently
4231	address the problems of the incapacitated person. In any order
4232	declaring a person incapacitated the court must find that
4233	alternatives to guardianship were considered and that no
4234	alternative to guardianship will sufficiently address the
4235	problems of the ward.
4236	(f)  Upon the filing of a verified statement by an
4237	interested person stating:
4238	1.  That he or she has a good faith belief that the alleged
4239	incapacitated person's trust, trust amendment, or durable power
4240	of attorney is invalid; and
4241	2.  A reasonable factual basis for that belief,
4242
4243	the trust, trust amendment, or durable power of attorney shall
4244	not be deemed to be an alternative to the appointment of a
4245	guardian. The appointment of a guardian does not limit the
4246	court's power to determine that certain authority granted by a
4247	durable power of attorney is to remain exercisable by the
4248	attorney in fact. When an order is entered which determines that
4249	a person is incapable of exercising delegable rights, a guardian
4250	must be appointed to exercise those rights.
4251	Section 44.  Paragraph (a) of subsection (6) of section
4252	744.361, Florida Statutes, is amended to read:
4253	744.361  Powers and duties of guardian.--
4254	(6)  A guardian who is given authority over any property of
4255	the ward shall:
4256	(a)  Protect and preserve the property and invest it
4257	prudently as provided in chapter 518 defined in s. 737.302,
4258	apply it as provided in s. 744.397, and account for it
4259	faithfully.
4260	Section 45.  Subsections (11) and (18) of section 744.441,
4261	Florida Statutes, are amended to read:
4262	744.441  Powers of guardian upon court approval.--After
4263	obtaining approval of the court pursuant to a petition for
4264	authorization to act, a plenary guardian of the property, or a
4265	limited guardian of the property within the powers granted by
4266	the order appointing the guardian or an approved annual or
4267	amended guardianship report, may:
4268	(11)  Prosecute or defend claims or proceedings in any
4269	jurisdiction for the protection of the estate and of the
4270	guardian in the performance of his or her duties. Before
4271	authorizing a guardian to bring an action described in s.
4272	736.0207, the court shall first find that the action appears to
4273	be in the ward's best interests during the ward's probable
4274	lifetime. If the court denies a request that a guardian be
4275	authorized to bring an action described in s. 736.0207, the
4276	court shall review the continued need for a guardian and the
4277	extent of the need for delegation of the ward's rights.
4278	(18)  When the ward's will evinces an objective to obtain a
4279	United States estate tax charitable deduction by use of a split
4280	interest trust (as that term is defined in s. 736.1201 737.501),
4281	but the maximum charitable deduction otherwise allowable will
4282	not be achieved in whole or in part, execute a codicil on the
4283	ward's behalf amending said will to obtain the maximum
4284	charitable deduction allowable without diminishing the aggregate
4285	value of the benefits of any beneficiary under such will.
4286	Section 46.  Section 744.462, Florida Statutes, is created
4287	to read:
4288	744.462  Determination regarding alternatives to
4289	guardianship.--Any judicial determination concerning the
4290	validity of the ward's durable power of attorney, trust, or
4291	trust amendment shall be promptly reported in the guardianship
4292	proceeding by the guardian of the property. If the instrument
4293	has been judicially determined to be valid or if, after the
4294	appointment of a guardian, a petition is filed alleging that
4295	there is an alternative to guardianship which will sufficiently
4296	address the problems of the ward, the court shall review the
4297	continued need for a guardian and the extent of the need for
4298	delegation of the ward's rights.
4299	Section 47.  Sections 737.101, 737.105, 737.106, 737.111,
4300	737.115, 737.116, 737.201, 737.202, 737.203, 737.2035, 737.204,
4301	737.2041, 737.205, 737.206, 737.2065, 737.207, 737.208, 737.209,
4302	737.301, 737.302, 737.303, 737.3035, 737.304, 737.305, 737.3053,
4303	737.3054, 737.3055, 737.306, 737.3061, 737.307, 737.308,
4304	737.309, 737.401, 737.402, 737.4025, 737.403, 737.4031,
4305	737.4032, 737.4033, 737.404, 737.405, 737.406, 737.501, 737.502,
4306	737.503, 737.504, 737.505, 737.506, 737.507, 737.508, 737.509,
4307	737.510, 737.511, 737.512, 737.6035, 737.621, 737.622, 737.623,
4308	737.624, 737.625, 737.626, and 737.627, Florida Statutes, are
4309	repealed.
4310	Section 48.  This act shall take effect July 1, 2007.

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