HB 965

1	A bill to be entitled
2	An act relating to trust administration; amending s.
3	736.0103, F.S.; revising a definition to exclude certain
4	interests as beneficial interests; providing construction;
5	amending s. 736.0105, F.S.; providing an additional
6	limitation on terms of a trust prevailing over provisions
7	of the Florida Trust Code; amending s. 736.0302, F.S.;
8	revising representation authority for holders of a power
9	of appointment; providing a definition; amending s.
10	736.0306, F.S.; authorizing trust instruments to authorize
11	certain persons to designate one or more persons to
12	represent and bind a beneficiary and receive certain
13	information; amending s. 736.0703, F.S.; revising
14	provisions for absence of liability of excluded trustees
15	under certain circumstances; amending s. 736.0813, F.S.;
16	specifying additional requirements for provision of a
17	complete copy of a trust instrument; providing an
18	effective date.
19
20	Be It Enacted by the Legislature of the State of Florida:
21
22	Section 1.  Paragraph (b) of subsection (4) of section
23	736.0103, Florida Statutes, is amended to read:
24	736.0103  Definitions.--Unless the context otherwise
25	requires, in this code:
26	(4)  "Beneficiary" means a person who:
27	(b)  Holds a power of appointment over trust property in a
28	capacity other than that of trustee. An interest as a
29	permissible appointee of a power of appointment, held by a
30	person in a capacity other than that of trustee, is not a
31	beneficial interest for purposes of this paragraph. Upon an
32	irrevocable exercise of a power of appointment, the interest of
33	a person in whose favor the appointment is made shall be
34	considered a present or future beneficial interest in a trust in
35	the same manner as if the interest had been included in the
36	trust instrument.
37	Section 2.  Paragraph (f) of subsection (2) of section
38	736.0105, Florida Statutes, is amended to read:
39	736.0105  Default and mandatory rules.--
40	(2)  The terms of a trust prevail over any provision of
41	this code except:
42	(f)  The requirements under s. 736.0108(1) for the
43	designation of a principal place of administration of the trust
44	and the requirements under s. 736.0107 for the designation of a
45	jurisdiction the law of which determines the meaning and effect
46	of the terms of a trust.
47	Section 3.  Section 736.0302, Florida Statutes, is amended
48	to read:
49	736.0302  Representation by holder of power of
50	appointment.--
51	(1)  The holder of a power of appointment may represent and
52	bind persons whose interests, as permissible appointees, takers
53	in default, or otherwise, are subject to the power.
54	(2)  The takers in default of the exercise of a power of
55	appointment may represent and bind persons whose interests, as
56	permissible appointees, are subject to the power.
57	(3)(2)  Subsection (1) does not apply to:
58	(a)  Any matter determined by the court to involve fraud or
59	bad faith by the trustee;
60	(b)  A power of a trustee to distribute trust property; or
61	(b)(c)  A power of appointment held by a person while the
62	person is the sole trustee.
63	(4)  As used in this section, the term "power of
64	appointment" does not include a power of a trustee to make
65	discretionary distributions of trust property.
66	Section 4.  Subsection (1) of section 736.0306, Florida
67	Statutes, is amended to read:
68	736.0306  Designated representative.--
69	(1)  If specifically nominated authorized in the trust
70	instrument, one or more persons may be designated to represent
71	and bind a beneficiary and receive any notice, information,
72	accounting, or report. The trust instrument may also authorize
73	any person or persons, other than a trustee of the trust, to
74	designate one or more persons to represent and bind a
75	beneficiary and receive any notice, information, accounting, or
76	report.
77	Section 5.  Subsection (9) of section 736.0703, Florida
78	Statutes, is amended to read:
79	736.0703  Cotrustees.--
80	(9)  If the terms of a trust instrument provide for the
81	appointment of more than one trustee but confer upon one or more
82	of the trustees, to the exclusion of the others, the power to
83	direct or prevent specified actions of the trustees, the
84	excluded trustees shall act in accordance with the exercise of
85	the power. Except in cases of willful misconduct on the part of
86	the directed trustee with the authority to direct or prevent
87	actions of the trustees of which the excluded trustee has actual
88	knowledge, an excluded trustee is not liable, individually or as
89	a fiduciary, for any consequence that results from compliance
90	with the exercise of the power, regardless of the information
91	available to the excluded trustees. The excluded trustees are
92	relieved of any obligation to review, inquire, investigate, or
93	make recommendations or evaluations with respect to the exercise
94	of the power. The trustee or trustees having the power to direct
95	or prevent actions of the trustees shall be liable to the
96	beneficiaries with respect to the exercise of the power as if
97	the excluded trustees were not in office and shall have the
98	exclusive obligation to account to and to defend any action
99	brought by the beneficiaries with respect to the exercise of the
100	power.
101	Section 6.  Paragraph (c) of subsection (1) of section
102	736.0813, Florida Statutes, is amended to read:
103	736.0813  Duty to inform and account.--The trustee shall
104	keep the qualified beneficiaries of the trust reasonably
105	informed of the trust and its administration.
106	(1)  The trustee's duty to inform and account includes, but
107	is not limited to, the following:
108	(c)  Upon reasonable request, the trustee shall provide a
109	qualified beneficiary with a complete copy of the trust
110	instrument, which means a complete copy of the original trust
111	instrument including all restatements of and amendments to the
112	original trust instrument, whether or not any such restatements
113	or amendments contain current terms of the trust.
114
115	Paragraphs (a) and (b) do not apply to an irrevocable trust
116	created before the effective date of this code, or to a
117	revocable trust that becomes irrevocable before the effective
118	date of this code. Paragraph (a) does not apply to a trustee who
119	accepts a trusteeship before the effective date of this code.
120	Section 7.  This act shall take effect July 1, 2009.

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