The Florida Trust Code recognizes the following as legally-valid reasons to remove a trustee: -The trustee has committed a serious breach of the Trust -Lack of cooperation among co-trustees that substantially impairs the administration of the Trust -The trustee is unfit, unwilling, […] 736.0103 ... (16) “Qualified beneficiary” means a living beneficiary who, on the date the beneficiary… The trust instrument may provide that a trustee need not account or only account informally to a beneficiary but according to the Florida Trust Code any such limiting provisions are ineffectual and cannot relieve the trustee of his or her duty to account fully to a qualified beneficiary. Under Florida’s Trust Code there are two classes of beneficiaries, and which class you fall in is a big deal. SECTION 04113. But this can only be determined by reviewing the trust document. An interest as a permissible appointee of a power of appointment, held by a person in a capacity other than that of trustee, is not a beneficial interest for purposes of this subsection. However, if each trustee is also a personal representative of the estate, each qualified beneficiary of the trust as defined in s. When enacted, the FTC was comprised of . It … • §736.0414(1) • After notice to qualified beneficiaries, a trustee may terminate a trust if the value of the trust property is less than $50,000 and the trustee concludes that the value of the trust property is insufficient to justify the cost of administration. Here, three sisters dispute whether several charities are “qualified beneficiaries” of the trust under the Florida Trust Code. If the value of the trust is less than $50,000, the trustee can terminate the trust by simply notifying the beneficiaries. According to F.S. Generally, the rules include the current beneficiaries, and the next level of persons who would take if the trust then terminated or the current beneficiaries then ceased to be beneficiaries. The waiver can be effective until the beneficiary withdraws the waiver previously given. Upon reasonable request, the trustee shall provide a qualified beneficiary with relevant information about the assets and liabilities of the trust and the particulars relating to administration. 1 However, many estate planning clients are surprised to learn of the disclosure requirements imposed on a trustee by the Florida Trust Code. 736.0103(16), the term “qualified beneficiary” encompasses a small but favored class of trust beneficiaries. Chapter 736 FLORIDA TRUST CODE Entire Chapter. Turning first to the duty to inform and account, §736.0813 of the Code requires that a trustee must keep the qualified beneficiaries of an irrevocable trust reasonably informed of the trust and its administration. It is more likely than not that your nephews became qualified beneficiaries when your brother died and his current wife will not share in the estate. FLORIDA TRUST CODE. about 40% prior Florida law and . Florida has adopted the Uniform Trust Code (U.T.C. This class of beneficiary is limited to current beneficiaries, as well as beneficiaries that are intermediate beneficiaries and first-line remainder beneficiaries, whether vested or contingent. ), which governs the administration of trusts in Florida as well as duties and rights of trustees and beneficiaries. The statute limits this class to: Current beneficiaries, First-line remainder beneficiaries, and; Intermediate beneficiaries. It includes, but is not limited to, a mandatory duty to: 736.0103(4), the term “beneficiary” refers to the entire universe of persons who have a beneficial interest in a trust, as well as to any person who has a power of appointment over trust property in a capacity other than as trustee. This distinction is important and often used throughout the Florida Trust Code. For example, contingent remainder beneficiaries of a trust are qualified beneficiaries under section 736.0103(16), Florida Statutes, because of their interest in the distribution of any principal remaining after the death of a lifetime beneficiary. (e) Upon reasonable request, the trustee shall provide a qualified beneficiary with relevant information about the assets and liabilities of the trust and the particulars relating to administration. FLORIDA TRUST CODE. Judicial modification of irrevocable trust when modification is not inconsistent with settlor’s purpose. In the United States, the rights of trust beneficiaries are typically governed by state law. As defined in F.S. SECTION 0103 Definitions. A Qualified Beneficiary encompasses a subset of people that may not normally be considered beneficiaries. There are various grounds for removing someone as trustee of a Florida Trust. The trial court ruled that the charities were NOT qualified beneficiaries. Florida Statute 736.0306 allows a settlor of a Florida trust to appoint a “designated representative” to receive notices, information, accountings, and reports on behalf of the trust beneficiaries. Note this duty extends only to qualified beneficiaries. §736.0103 (16) provides general rules on when a living beneficiary is a qualified beneficiary. Fla.Stats. GENERAL PROVISIONS AND DEFINITIONS (ss. Terms Used In Florida Statutes 736.0414 Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. There is also a subset of “qualified beneficiaries” whom the trustee must keep “reasonably informed of the trust and its administration.” A qualified beneficiary in this context refers to someone who is either currently entitled to receive the income or principal of the trust, someone who would be entitled to receive the income or principal if the current recipients’ rights are terminated, or someone entitled to receive the income or principal upon the termination of the trust … The Florida Trust Code provides a couple of solutions for these situations. 736.0110 Others treated as qualified beneficiaries. (4) “Beneficiary” means a person who has a present or future beneficial interest in a trust, vested or contingent, or who holds a power of appointment over trust property in a capacity other than that of trustee. A judicial proceeding involving a trust may relate to the validity, … 8 This is a codification of the common law of trusts. What are beneficiaries of trusts in Florida entitled to? Know your rights. See our 12 Point Summary of Florida Trustee Duties. CHAPTER 736. A trustee or affiliate or associate of the trustee may receive compensation for such services in addition to fees received for administering the trust provided such compensation is fully disclosed in writing to all qualified beneficiaries. Withdrawals of prior waivers are effective only with respect to accountings for future periods. 736.0201(4). UNIFORM TRUST CODE The Committee that acted for the National Conference of Commissioners on Uniform State Laws in preparing the Uniform Trust Code was as follows: MAURICE A. HARTNETT, III, Delaware Supreme Court, 144 Cooper Road, Dover, DE 19901,Chair FRANK W. DAYKIN, 4745 Giles Way, Carson City, NV 89704, Committee Member and 736.0101-736.0112) 736.0103 - Definitions. about 60% based on the UTC, with almost ... is requested by all qualified beneficiaries, and the §736.0103(16) provides general rules on when a living beneficiary is a qualified beneficiary. 736.0110 Others treated as qualified beneficiaries.— (1) A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under this code if the charitable organization, on the date the charitable organization’s qualification is being determined: Paragraphs (a) and (b) do not apply to an irrevocable trust created before the effective date of this code, or to a revocable trust that becomes irrevocable before the effective date of this code. Chapter 736 FLORIDA TRUST CODE. Designated Representative: Section 736.0306 of the Florida Trust Code. Paragraphs (a) and (b) do not apply to an irrevocable trust created before the effective date of this code, or to a revocable trust that becomes irrevocable before the effective date of this code. F.S. F.S. §736.0813 provides that a trustee must keep the qualified beneficiaries of a trust “reasonably informed of the trust and its administration.” For example, … (1) A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under this code if the charitable organization, on the date the charitable organization’s qualification is being determined: 736.04113. A recent Fourth DCA opinion, Hadassah v. Melcer, discusses this issue. A trustee has a fundamental duty to keep beneficiaries informed of the administration of a trust. 736.04113 Judicial modification of irrevocable trust when modification is not inconsistent with settlor’s purpose.—. The trustee of an irrevocable trust in Florida is a fiduciary with numerous responsibilities that run like a laser beam to the qualified beneficiaries. The trust needs to be read by an estate attorney in Florida. By Niuris Bezanilla July 2, 2020 Florida Statute Section 736.0502(2) states that "(a) term of a trust providing that the interest of a beneficiary is held subject to a spendthrift trust, or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary's interest." Fla.Stats. 736.0110 Others treated as qualified beneficiaries.— (1) A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under this code if the charitable organization, on the date the charitable organization’s qualification is being determined: Judicial Proceedings. Chapter 736 - FLORIDA TRUST CODE Part I - GENERAL PROVISIONS AND DEFINITIONS (ss. 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