Florida Senate - 2015                              CS for SB 630
       
       
        
       By the Committee on Banking and Insurance; and Senator Joyner
       
       
       
       
       
       597-02400-15                                           2015630c1
    1                        A bill to be entitled                      
    2         An act relating to transfers to minors; amending s.
    3         710.102, F.S.; defining the term “general power of
    4         appointment”; amending s. 710.105, F.S.; specifying
    5         that certain transfers from a trust are considered as
    6         having been made directly by the grantor of the trust;
    7         amending s. 710.123, F.S.; authorizing custodianships
    8         established by irrevocable gift and by irrevocable
    9         exercise of power of appointment to terminate when a
   10         minor attains the age of 25, subject to the minor’s
   11         right in such custodianships to compel distribution of
   12         the property upon attaining the age of 21; limiting
   13         liability of financial institutions for certain
   14         distributions of custodial property; reenacting ss.
   15         710.117(2) and 710.121(2) and (6), F.S., to
   16         incorporate the amendment made to s. 710.105, F.S., in
   17         references thereto; providing an effective date.
   18          
   19  Be It Enacted by the Legislature of the State of Florida:
   20  
   21         Section 1. Subsections (9) through (18) of section 710.102,
   22  Florida Statutes, are redesignated as subsections (10) through
   23  (19), respectively, and a new subsection (9) is added to that
   24  section, to read:
   25         710.102 Definitions.—As used in this act, the term:
   26         (9) “General power of appointment” means a power of
   27  appointment as defined in s. 732.2025(3).
   28         Section 2. Section 710.105, Florida Statutes, is amended to
   29  read:
   30         710.105 Transfer by gift or exercise of power of
   31  appointment.—A person may make a transfer by irrevocable gift
   32  to, or the irrevocable exercise of a power of appointment in
   33  favor of, a custodian for the benefit of a minor pursuant to s.
   34  710.111. Notwithstanding s. 710.106, a transfer by irrevocable
   35  gift from a trust over which the grantor has at the time of
   36  transfer a right of revocation, as defined in s. 733.707(3)(e),
   37  shall be treated for all purposes under this act as a transfer
   38  made directly by the grantor of the trust.
   39         Section 3. Section 710.123, Florida Statutes, is amended to
   40  read:
   41         710.123 Termination of custodianship.—
   42         (1) The custodian shall transfer in an appropriate manner
   43  the custodial property to the minor or to the minor’s estate
   44  upon the earlier of:
   45         (a)(1) The minor’s attainment of 21 years of age with
   46  respect to custodial property transferred under s. 710.105 or s.
   47  710.106. However, a transferor may, with respect to such
   48  custodial property, create the custodianship so that it
   49  terminates when the minor attains 25 years of age;
   50         (b)(2) The minor’s attainment of age 18 years of age with
   51  respect to custodial property transferred under s. 710.107 or s.
   52  710.108; or
   53         (c)(3) The minor’s death.
   54         (2) If the transferor of a custodianship under paragraph
   55  (1)(a) creates the custodianship to terminate when the minor
   56  attains 25 years of age, in the case of a custodianship created
   57  by irrevocable gift or by irrevocable inter vivos exercise of a
   58  general power of appointment, the minor nevertheless has the
   59  absolute right to compel immediate distribution of the entire
   60  custodial property when the minor attains 21 years of age.
   61         (3) As to a custodianship described in subsection (2), a
   62  transferor may provide, by delivery of a written instrument to
   63  the custodian upon the creation of such custodianship, that the
   64  minor’s right to compel immediate distribution of the entire
   65  custodial property will terminate upon the expiration of a fixed
   66  period that begins with the custodian’s delivery of a written
   67  notice to the minor of the existence of such right. To be
   68  effective to terminate the minor’s right to compel an immediate
   69  distribution of the entire custodial property when the minor
   70  attains 21 years of age, the custodian’s written notice must be
   71  delivered at least 30 days before, and not later than 30 days
   72  after, the date upon which the minor attains 21 years of age,
   73  and the fixed period specified in the notice for the termination
   74  of such right may not expire before the later of 30 days after
   75  the minor attains 21 years of age or 30 days after the custodian
   76  delivers such notice.
   77         (4) Notwithstanding the definition of the term “minor” in
   78  s. 710.102, if the transferor creates the custodianship to
   79  terminate when the minor attains 25 years of age, solely for
   80  purposes of the application of the termination provisions of
   81  this section, the term “minor” means an individual who has not
   82  attained 25 years of age.
   83         (5) A financial institution has no liability to a custodian
   84  or minor for distribution of custodial property to, or for the
   85  benefit of, the minor in a custodianship created by irrevocable
   86  gift or by irrevocable exercise of a general power of
   87  appointment when the minor attains 21 years of age.
   88         Section 4. Subsection (2) of s. 710.117, Florida Statutes,
   89  and subsections (2) and (6) of s. 710.121, Florida Statutes, are
   90  reenacted for the purpose of incorporating the amendment made by
   91  this act to s. 710.105, Florida Statutes, in references thereto.
   92         Section 5. This act shall take effect July 1, 2015.