Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. SB 1958
       
       
       
       
       
       
                                Barcode 536702                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/18/2009           .                                
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       The Committee on Judiciary (Gelber) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 77 - 100
    4  and insert:
    5         Section 5. Subsections (5) and (9) of section 736.0703,
    6  Florida Statutes, are amended to read:
    7         736.0703 Cotrustees.—
    8         (5) A cotrustee may not delegate to another cotrustee the
    9  performance of a function the settlor reasonably expected the
   10  cotrustees to perform jointly, except that a trustee may
   11  delegate investment functions to a cotrustee pursuant to, and in
   12  compliance with, s. 581.112. A cotrustee may revoke a delegation
   13  previously made.
   14         (9) If the terms of a trust instrument provide for the
   15  appointment of more than one trustee but confer upon one or more
   16  of the trustees, to the exclusion of the others, the power to
   17  direct or prevent specified actions of the trustees, the
   18  excluded trustees shall act in accordance with the exercise of
   19  the power. Except in cases of willful misconduct on the part of
   20  the directed trustee having the authority to direct or prevent
   21  actions of the trustees of which the excluded trustee has actual
   22  knowledge, an excluded trustee is not liable, individually or as
   23  a fiduciary, for any consequence that results from compliance
   24  with the exercise of the power, regardless of the information
   25  available to the excluded trustees. The excluded trustees are
   26  relieved of any obligation to review, inquire, investigate, or
   27  make recommendations or evaluations with respect to the exercise
   28  of the power. The trustee or trustees having the power to direct
   29  or prevent actions of the trustees shall be liable to the
   30  beneficiaries with respect to the exercise of the power as if
   31  the excluded trustees were not in office and shall have the
   32  exclusive obligation to account to and to defend any action
   33  brought by the beneficiaries with respect to the exercise of the
   34  power.
   35         Section 6. Subsections (1) and (3) of section 736.0807,
   36  Florida Statutes, are amended to read:
   37         736.0807 Delegation by trustee.—
   38         (1) A trustee may delegate duties and powers that a prudent
   39  trustee of comparable skills could properly delegate under the
   40  circumstances, including investment functions pursuant to s.
   41  518.112. The trustee shall exercise reasonable care, skill, and
   42  caution in:
   43         (a) Selecting an agent.
   44         (b) Establishing the scope and terms of the delegation,
   45  consistent with the purposes and terms of the trust.
   46         (c) Reviewing the agent’s actions periodically, in order to
   47  monitor the agent’s performance and compliance with the terms of
   48  the delegation.
   49         (3) A trustee who complies with subsection (1) and, when
   50  investment functions are delegated, s. 518.112, is not liable to
   51  the beneficiaries or to the trust for an action of the agent to
   52  whom the function was delegated.
   53  
   54  ================= T I T L E  A M E N D M E N T ================
   55         And the title is amended as follows:
   56         Delete lines 14 - 16
   57  and insert:
   58  s. 736.0703, F.S.; authorizing a trustee to delegate investment
   59  functions to a cotrustee; providing an exception to
   60  circumstances under which an excluded trustee is otherwise not
   61  liable for the consequences of certain action; amending s.
   62  736.0807, F.S.; expanding the list of powers and duties that
   63  maybe delegated by a trustee; exempting a trustee who complies
   64  with certain provisions of state law from liability for the
   65  actions of an agent to whom a function was delegated; amending
   66  s. 736.0813, F.S.; specifying